Get ready to pay more if you are planning to buy a new four-wheeler or two-wheeler from 16 June. According to the IRDAI (Insurance Regulatory and Development Authority of India), third-party insurance for four-wheelers will be increased by up to 12.5 per cent, and for two-wheelers, it will go up by up to 21.11 per cent.
Usually, the mandatory third-party (TP) insurance cover rates for motor vehicles are revised from 1 April. However, this time around, the new rates for FY2019-20 will be applicable from 16 June. According to the new regulations, TP insurance for cars with engine capacity under 1,000cc will cost Rs 2,072 or 12 per cent, up from the existing Rs 1,850. On the other hand, cars having engine displacement between 1,000cc to 1,500cc will incur a hike in insurance premium by 12.5 per cent to Rs 3,221.
The third-party premium for cars with engine capacity above 1,500cc will be retained at Rs 7,890. The regulatory body has increased the TP insurance for public and private goods carrying vehicles as well. That said, insurance premiums for e-rickshaws remain unchanged, while those for school buses have been increased.