Buying a new car, bike to get costlier from June 1

If you are planning to buy a new car or bike from June 1, then get ready to pay more as the government has hiked the third-party (TP) motor insurance premium for various categories of vehicles.

The Ministry of Road Transport and Highways (MoRTH) recently released the notification regarding the price hike in third-party insurance which will result in a price increase for all vehicles in India, including four-wheelers and two-wheelers.

As per the official notification by the ministry, private cars with an engine capacity of 1,000 cc will attract rates of Rs 2,094 compared to Rs 2,072 in 2019-20. Private cars with an engine capacity between 1,000 cc and 1,500 cc will attract rates of Rs 3,416 compared to Rs 3,221.

A two-wheeler with a 150cc-350 cc engine capacity will attract a premium of Rs 1,366 and for two-wheelers, over 350 cc the revised premium will be Rs 2,804.

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Third-party insurance for private cars:

Cars with up to 1000 cc engine: Rs 2,094

Cars exceeding 1000 cc but not exceeding 1500 cc: Rs 3,416

For cars exceeding 1500 cc: Rs 7,897

For two-wheelers:

For two-wheelers with up to 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

Third-party insurance

The third-party insurance cover is for other than own damage and is mandatory 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.

Goods carrying commercial vehicles (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 exceeding 40,000 kg: Rs 44,242

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After a two-year moratorium due to the Covid-19 pandemic, the revised third-party insurance premium will come into effect from June 1.

Earlier, TP rates were notified by the Insurance Regulatory and Development Authority of India (IRDAI). This is the first time that the MoRTH has notified the TP rates in consultation with the insurance regulator.