The Third party premium rates for various categories of motor vehicles are going to be increased.The Insurance Regulatory Authority of India (IRDAI) has released an exposure draft on the new Motor Third Party (TP) Liability rates for the financial year 2020-21. Which may become applicable at the start of the new financial year i.e April 2020.The rates keep on revising every year after analyzing the data of premium recvied VS the claims paid.
For the two-wheeler category, the premium rate is proposed to be increased across the segment. The premium on two-wheelers not exceeding 75 cc engine may be increased from Rs 482 to rate of Rs 506. For the two-wheelers exceeding 75 cc and below 150 cc, the current rate of Rs 752 may be increased to Rs 769. Similarly, for the two-wheelers exceeding 150 cc and below 350 cc, the current rate of Rs 1193 may be increased to Rs 1301 and for the two-wheelers exceeding 350 cc, the new rate may be Rs 2571 instead of the current rate of Rs 2323.
The rates for the pvt cars, commercial vehicles as well as the categories of vehicle are also set to increase,