New Delhi, 30th May 2022: Vehicle Insurance will become expensive from June 2022. A new amount of third party motor insurance premium has been issued by the Union Ministry of Road Transport and Highways, according to which insurance for motor vehicles of 1000 cc capacity will become costlier than before.
However, there has been a marginal reduction in premium for motor vehicles of more than 1500 cc capacity. Till now, the Insurance Regulatory and Development Authority (IRDAI) has been fixing the amount of third party insurance premiums, but this work is being done by the central government this year.
Due to Covid, the government did not allow an increase in the third party premium amount for two years. However, companies say that the growth has been less than they expected.
According to the new rule, the amount of third party insurance premiums for vehicles of 1000 cc capacity has been increased from Rs 2072 to Rs 2094. Similarly, for cars of 1000 cc to 1500 cc capacity, this amount has been increased from Rs.3221 to Rs.3416.
Whereas for vehicles above 1500 cc capacity, it has been decided to reduce the amount of third party insurance premium from Rs 7897 to Rs 7890. Talking about two-wheelers, the above amount for 150 cc to 350 cc will be Rs 1,366 while for vehicles above 350 cc it will be Rs 2,804.
The government has said for hybrid vehicles can be given a rebate of up to 7.5 percent in the amount of third party insurance premiums. The government has also said that vehicles used in educational institutions will be given a rebate of 15 per cent in the said amount.
In respect of commercial vehicles, it has been said that third parties for vehicles carrying goods between 12,000 kg to 20 thousand kg. The amount of insurance premium will now be Rs 35,313 as against Rs 34,414 earlier. The amount has also been increased from Rs 41,561 to Rs 44,242 for vehicles carrying goods carrying more than 40 thousand kg.
According to the law, it is necessary to get third party insurance while buying any kind of vehicle. It is a part of the entire sum insured that covers the loss caused to a third party during the accident.