Chennai: The insurance regulator has proposed higher motor third party (TP) premium rates for most vehicles, except vintage cars and electric vehicles for FY20. Premiums can go up to 15 per cent for private cars and 21 per cent for some two-wheelers.
IRDAI has proposed to raise the TP premiums by 14.6 per cent for small cars not exceeding 1000 cc. The rates may go up from Rs 1,850 to Rs 2,120. For private cars falling between 1,000 cc and 1,500 cc, the premium can go up by 15 per cent to Rs 3,300 from the existing Rs 2,863. However, for luxury cars (with engine capacity of over 1,500 cc) TP premium might remain at Rs 7,890.
Premium for two-wheelers below 75 cc is proposed to be Rs 482, up 12.8 per cent from Rs 427. For two-wheelers not exceeding 150 cc it may go up by 4.4 per cent and those below 350 cc by 21 per cent to Rs 1,193. However, no rate hike has been proposed for superbikes or those exceeding 350 cc.
Goods carrying public carriers may have to pay premiums higher by 8 to 10 per cent and private carriers, by 10 to 13 per cent. School buses, tractors, car and two-wheeler taxis as well as buses and trucks may also have to pay higher premiums in FY20. There will be no premium change for long-term policies of new cars and two-wheelers.
In the case of electric private cars and electric two-wheelers, a discount of 15 per cent has been proposed in the TP premium.
Normally, the TP rates are revised from April 1. But IRDAI had not revised the rates in April this time. It has proposed the revision of rates based on the loss ratio in each segment. It has invited comments from stakeholders.