IRDAI proposes to hike third-party motor insurance premiums for FY2022-23

The Insurance Regulatory and Development Authority of India ( IRDAI ) has proposed the third party bounty rates for individual two-wheelers and cars for the fiscal year 2022-23. According to the new rates, you will have to pay more for your four-wheeler ( secret cars ) and two-wheel ( bicycle ) vehicle ‘s third-party covering with effect from 1 April 2022. From the by two fiscal years ( FY 2020-21 and FY 2021-22 ), the IRDAI had not revised the rates. Hence, cashbox immediately, the rates remained the like that Irdai laid down for FY 2019-20 .

Ashwini Dubey, head- drive renewals, Policybazaar.com, said that this was an expect move as third base party rates had not been changed for the past two terms. The increase is from car to two-wheel to commercial vehicles across the spectrum. While third-party bounty rates are revised per annum by Irdai, these were put on hold in 2020. And again in 2021 to give respite to policyholders during the pandemic. however, with the rebel in the number of third-party claims after the initial cliff during Covid, GICs had written to IRDAI, proposing the mandatary increase in third-party rates, which has now been accepted. This will increase insurance premiums for both comprehensive and third-party as TP is a part of comprehensive examination.

” Since TP indemnity is mandatory by law, this will impact all customers. Customers who wish to avoid a premium increase can renew their policies before the new rates become effective on 1 April 2022, ” said Dubey .
The highest share addition of around 21 % will be for two-wheelers with engine capacities above 350cc. The proposed rates are being hiked from ₹2,323 to ₹2,804. Two-wheelers with engine capacity over 150cc but not exceeding 350cc will have to pay ₹1,366, up from ₹1,193. however, the pace has been reduced for two-wheelers with locomotive capacity exceeding 75cc but not exceeding 150cc ; they will have to pay ₹714 alternatively of ₹752. Two-wheelers with an engine capacity of less than 75cc, the cost of third-party top has been increased from ₹482 to ₹538. On the early hand, the rates have been increased across all segments for cars or four-wheelers .

Source: IRDAI

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Source: IRDAI

According to the IRDAI draft proposal, third-party premium rates have been increased for private cars. For cars with an engine capacitance of less than 1000cc, the monetary value of third-party top has been increased from ₹2,072 to ₹2,094, for private cars with locomotive capacity exceeding 1000cc but not exceeding 1500cc from ₹3,221 to ₹3,416. For cars with an engine capacity of more than 1500cc, the price of third-party screen has been increased from ₹7,890 to ₹7,897 .

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