Cars and two-wheelers are expected to become more expensive from June as insurance prices rise; Know the details
Liability insurance for vehicles will become more expensive from Wednesday June 1, as the government has revised new base premium rates. With this hike, private cars with engine capacity up to 1000cc will cost Rs 2094, up from Rs 2072 previously. Liability insurance for two-wheelers with a displacement between 75 cc and 150 cc has been increased to Rs 714.
Insurance rates for passenger cars with an engine capacity between 1,000cc and 1,500cc will drop from Rs 3,221 to Rs 3,416. will see the premium drop to Rs 7,890 from Rs 7,897 earlier, according to the new rates released by the Ministry of Road Transport and Union Highways (MoRTH). Prior to that, these insurance rates were last revised for fiscal year 2019-20 and remained unchanged during the COVID-19 pandemic.
Ashwini Dubey, manager (engine renewals) at Policybazaar.com: “The car insurance premium will go up. For new cars, if the cost of insurance is covered by the loan, this may have minimal impact. Auto insurance costs will rise across the board. This increase was expected since civil liability insurance premiums had not increased in recent years. Since the draft notification was released earlier this year, this announcement was expected sooner rather than later.
According to a government notification, a 7.5% premium discount will be allowed for hybrid electric vehicles. Electric private automobiles with a capacity below 30 KW will be charged a premium of Rs 1,780. Those cars with a power capacity above 30 KW and up to 65 KW will incur a premium of Rs 2,904 for the liability insurance.
A reduced price of 50% of the premium based on the Indian car tariff is allowed for a private car registered as a classic car. All premium rates will be rounded to the nearest rupee as notified.
Here is the list of new liability insurance rates:
Third-party insurance for passenger cars:
For cars not exceeding 1000 cc: Rs 2,094
For cars exceeding 1000 cc but not exceeding 1500 cc: Rs 3,416
For cars exceeding 1500 cc: Rs 7,897
Liability insurance for two-wheelers:
For two-wheelers not exceeding 75 cc: Rs 538
For two-wheelers exceeding 75 cc but not exceeding 150 cc: Rs 714
For two-wheelers exceeding 150 cc but not exceeding 350 cc: Rs 1,366
For two-wheelers exceeding 350 cc: Rs 2,804
Utility vehicles transporting goods (other than three-wheelers):
Gross vehicle weight not exceeding 7,500 kg: Rs 16,049
Gross vehicle weight exceeding 7,500 kg but not exceeding 12,000 kg: Rs 27,186
Gross vehicle weight exceeding 12,000 kg but not exceeding 20,000 kg: Rs 35,313
Gross vehicle weight exceeding 20,000 kg but not exceeding 40,000 kg: Rs 43,950
Gross vehicle weight over 40,000 kg: Rs 44,242
Third-party insurance for electric passenger cars:
Not exceeding 30 KW: Rs 1,780
Exceeding 30 KW but not exceeding 65 KW: Rs 2,904
Exceeding 65 KW: Rs 6,712
Liability insurance for electric two-wheelers:
Not exceeding 3 KW: Rs 457
Exceeding 3 KW but not exceeding 7 KW: Rs 607
Exceeding 7 KW but not exceeding 16 KW: Rs 1,161
Exceeding 16 KW: Rs 2,383.
Read all the latest IPL 2022 news, breaking news and live updates here.