Effective from April 1, 2017 the Insurance Regulatory and Development Authority of India (IRDAI) has increased rates by up to 41 per cent across various categories of vehicles. The revised premium rates are applicable for fiscal 2017-2018. The percentage of increase reportedly varies depending on the category of vehicles, such as two-wheelers, private cars, public as well as private goods carrier vehicles, motorised three-wheelers, and trailers.
IRDAI had proposed an increase of up to 50 per cent in early March for a few of these vehicle categories, which was eventually capped at a maximum 41 per cent. Third party insurance premium for small cars up to 1,000cc will remain unchanged. However, the premium cars, which are powered by 1,000-1,500cc engines, will pay an additional 40 per cent. The bigger cars and SUVs with over 1,500cc engines will also bear a 40 per cent hike. Owners of vintage cars can get their vehicle certified by the Vintage and Classic Car Club of India to avail a discount of 25 per cent.
Moving on to two wheelers, the premium rate for vehicle up to 75cc remains unchanged for now. But two-wheelers between 75-150cc category will have to pay an additional 16 per cent, while insurance for those between 150-350cc is up by 40 per cent. As for bikes above 350cc, effectively from April 1, owners will now have to pay an additional 26 per cent.
As for trucks, added premium remains unchanged on trucks less than 7.5-tonnes under the public carrier segment, while trucks of a similar tonnage under the private carrier segment will see a marginal hike in price. Moreover, other trucks under private carrier segment will see a hike ranging between 5-40 percent. To ensure that there are no changes to the premium or any other provision of insurance policies which have already been sold prior to April 1, 2017, the insurers will have to submit a certificate to the IRDA.
