IRDAI increases premium rates for Motor TP insurance for 2019-20

The Insurance Regulatory and Development Authority of India (IRDAI) has increased the premium rates for Motor Third Party (TP) insurance for small and medium private cars by 12-12.5 per cent for 2019-20. The new rates will come into effect from June 16, 2019. It has also proposed a hike in TP premium for two-wheelers and heavy vehicles for the current year.

Premium for private cars not exceeding 1,000 cc has been increased to Rs 2,072. The IRDAI had earlier proposed a hike of 14.6 per cent to Rs 2,120. For cars between 1,000 cc and 1,500 cc, the premium is Rs 3,221. The premium for cars exceeding 1,500 cc will remain at Rs 7,890 as proposed earlier.

Similarly, the TP premium of two-wheelers of less than 75 cc has been increased to Rs 482. For two-wheelers not exceeding 150 cc, premium will go to Rs 752 and those below 350 cc to Rs 1,193. However, no rate hike has been proposed for superbikes or those exceeding 350 cc. The proposed rates of two-wheelers have been retained by IRDAI even after stakeholder’s consultations.

In the case of goods carriers with gross vehicle weight (GVW) up to 7,500 kg, it has decided to increase the TP premium to Rs 15,746, for vehicles with GVW between 7500 kg to 12,000 kg, the rate will go up to Rs 26,935 and for vehicles between 12,000 kg to 20,000 kg, the rate will rise to Rs 33,418.