Civil liability insurance: IRDAI offers premium car and two-wheeler civil liability insurance for the 2022-23 financial year
IRDAI has not changed the tariffs in the last two fiscal years (FY 2020-21 and FY 2021-22). As a result, the rates set by Irdai for the 2019-20 financial year have remained unchanged until today.
There is a suggested discount on certain vehicles that will encourage people to drive green cars.
Below are suggested third party driver bonus rates for fiscal year 2022-23 for various vehicle categories/sub-categories, which will come into effect on April 1, 2022.
- According to the draft IRDAI notification, “Paid claims data was taken into account for the construction of a cumulative triangle of paid claims for each homogeneous subclass with the year of the accident (AY) as the year of origin and the financial year (FY) as the year of development.
- In order to arrive at the premium rates, the ultimate loss cost of the respective segment for each year of occurrence was estimated using the actuarial technique of the basic chain ladder method. »
- Electric passenger cars, electric two-wheelers, electric utility vehicles carrying goods and electric vehicles carrying passengers are all eligible for a 15% discount.
- Hybrid electric vehicles would benefit from a 7.5% reduction in the Motor TP premium fee. This will encourage people to drive environmentally friendly vehicles.
- Private cars registered as classic cars are entitled to a 50% reduction on the charge based on the old Indian Motor Tariff (IMT).
Abhilasha Singh, Head – Affinity Partnerships, Riskcovry, said the increase in third-party claims prompted the decision, along with zero rate revisions in the past two years due to the pandemic. The rate increase will impact all customers. The third-party premium as a component is part of the liability and all-risk insurance policies. An additional rebate is offered to EV/Hybrid passenger and commercial vehicles to increase adoption of environmentally friendly technologies. More importantly, it will help form a stable bounty pool for third-party claims that are often delayed or stuck in court proceedings.