Buying a new car or bike to get costlier from June 1
The third-party insurance premium will be increased in different categories of vehicles from June 1.
Buying a new car or a bike will get costlier from next month, June 1, as the government has hiked the price of insurance premiums.
The Ministry of Road Transport and Highways has issued a notification regarding the hike. Earlier, rates were notified by the insurance regulator IRDAI. This is also for the first time that the road transport ministry has notified the premium rates in consultation with the insurance.
According to the notification, the third-party insurance premiums will be increased in different categories of vehicles. The insurance premium is going to increase from 6 percent to 17 percent.
The hike in third-party insurance premiums was announced after two years of moratorium due to the COVID-19 pandemic.
According to the government notification, the insurance premium on private cars from 1000 to 1500 cc will be increased by 6%.
While 23% more will be charged in third party insurance (lump sum 3 years) on new private cars up to 1000 cc. Moreover, third party premium for new private cars of 1000 to 1500 cc will be hiked by 11%.
Even if you buy a new two-wheeler, you will have to pay 17% more for a third party premium from next month.
The insurance premium will be increased by up to 15% on bikes above 150 cc.
The third-party insurance cover is for other than own damage, that is for the vehicle. This is a mandatory cover, along with the own damage cover, that a vehicle owner has to purchase.
This insurance cover is for any collateral damage to a third party, generally a human being, caused due to a road accident.
At the beginning of this year, several car manufacturers including Maruti Suzuki, Toyota, Mahindra and Tata, had increased the prices of their model line up owing to the shortage of raw materials.
Moreover, the prices of two-wheelers in the Indian market also increased during the first quarter of the year.