The centre on Wednesday approved the new base premium rates for third party motor vehicle insurance. These revised rates will be applicable from June 1, 2022. These rates were last revised for financial year 2019-20 and were kept unchanged during the COVID-19 pandemic.
According to a gazette notification from the Ministry of Road, Transport, and Highways, the annual rate of third-party insurance for private cars not exceeding 1000 cc has been fixed at Rs 2,094, up from Rs 2,072 in 2019-20. Under the new rates, third party insurance for private cars with an engine capacity between 1000 cc and 1500 cc has been raised to Rs 3,416 from Rs 3,221 in 2019-20. Larger private vehicles that have an engine capacity above 1500 cc will see the premiums fall to Rs 7,897 from Rs 7,890.
For two wheelers over 150 cc but not exceeding 350 cc, the insurance premium will be Rs 1,366 while two-wheelers over 350 cc will command a premium of Rs 2,804.
The three-year single premium for a new car not exceeding 1000 cc has been fixed at Rs 6,521, while for a car between 1000 cc and 1500 cc it has been fixed at Rs 10,640. A new private vehicle exceeding 1500 cc will be insured at Rs 24,596 for three years under the newly notified rates.
The five year single premium for two wheelers not exceeding 75 cc is Rs 2,901, exceeding 75 cc but not 150 cc is Rs 3,851, and exceeding 150 cc but not 350 cc is Rs 7,365. A two wheeler exceeding 350 cc can be insured for five years at Rs 15,117 under the new rates.
A new private electric vehicle (EV) can be insured at Rs 5,543 for three years if it is not exceeding 30 KW. If the EV exceeds 30 KW but is less than 65 KW, the three year premium will be Rs 9,044. Larger EVs exceeding 65 KW will be insured at Rs 20,907 for three years.
New two wheelers EVs can be insured under five year single premiums for Rs 2,466 if they are not exceeding 3 KW. EV two wheelers exceeding 3 KW but not 7 KW will be insured for Rs 3,273, and exceeding 7 KW but not 16 KW for Rs 6,260. Higher powered EV two wheelers with a capacity exceeding 16 KW will be insured at Rs 12,849 for five years.