Centre proposes to keep vehicle insurance premium unchanged for most categories
June 19, 2023
Synopsis
Sops which have been continued include a discounted price of 50% of the premium based on the Indian Motor Tariff to a private car registered as vintage car. Another discount of 7.5% on the premium shall be allowed for Hybrid Electric Vehicle. A 15% discount has been provided for Educational institution buses, and for Electric vehicles over comparable fossil fuel run ones.
The centre has proposed keeping the rates of motor third party premium unchanged, across most categories, for the financial year 2023-24. According to a draft notification for the same, slightly lower insurance premium rates have been proposed for three-wheelers in both electric and conventional rickshaws.
These rates are referenced by insurance companies while fixing the premium rates for vehicles.
Sops which have been continued include a discounted price of 50% of the premium based on the Indian Motor Tariff to a private car registered as vintage car. Another discount of 7.5% on the premium shall be allowed for Hybrid Electric Vehicle. A 15% discount has been provided for Educational institution buses, and for Electric vehicles over comparable fossil fuel run ones.
Insurance premium for three-wheeled vehicles used for carrying passengers for hire or reward with carrying capacity not exceeding six passengers has been trimmed in the proposal. The basic rate for three-wheelers (rickshaws) has been proposed to be lowered from Rs 2,539 to Rs 2,371 per annum. Basic premium rate for electric rickshaws (e-rickshaws) is to be cut from Rs 1,648 to 1,539 per annum.
Third party insurance cover for a private car not exceeding 1000 cc engine capacity has been proposed to be continued at Rs 2,094. For private four wheelers exceeding 1000 cc but less than 1500 cc, the rate has been proposed at Rs 3,416. Two-wheelers with engine capacity less than 75 cc have can be insured at Rs 538 for a year and for those with a capacity between 75cc and 150cc, the premium has been suggested at Rs 714 per annum.
[The Economic Times]
