The Union Road Transport Ministry has recommended a hike in third-party motor insurance premiums for several vehicle types, which is expected to raise insurance costs for automobiles and two-wheelers beginning April 1.
Private automobiles with 1,000 cubic capacity (cc) would be charged Rs 2,094 in 2019-20, up from Rs 2,072 in 2019-20, according to the proposed increased rates.
Similarly, private cars with 1,000 cc to 1,500 cc would pay Rs 3,416 compared to Rs 3,221, while owners of cars with more than 1,500cc will pay Rs 7,897 compared to Rs 7,890.
Two-wheelers with displacements greater than 150 cc but less than 350 cc would be subject to a Rs 1,366 premium, while those with displacements greater than 350 cc will face a Rs 2,804 charge.
The new TP insurance premium will go into effect on April 1 after a two-year suspension owing to the Covid-19 epidemic.
The preliminary notification proposes a 15% discount for electric personal cars, electric two-wheelers, electric goods-carrying commercial vehicles, and electric passenger-carrying vehicles.
The third-party insurance cover is for damage other than one’s own and is required in addition to the own damage protection that a car owner must obtain.
This insurance covers any collateral damage to a third party, usually, a human being, caused by a car accident.
The ministry has requested feedback on the drafted notification by the end of March.