Relief on Motor Insurance in Corona crisis, Third party premium rates won’t change

There has been good news in the corona crisis for car and two-wheeler owners. It is about the insurance premium of these vehicles. The Insurance Regulatory Authority of India (IRDAI) has issued an order on March 27, 2020, raising the premium rate of motor third party liability insurance cover beyond March 31, 2020, till further notice for the year 2019-20. Therefore, all insurance companies will continue to charge the premium rate currently charged for motor third party liability insurance cover from April 1 till further orders.

Earlier this financial year, IRDAI announced a new third-party rate for different categories of vehicles. Earlier this month, IRDAI released a draft process for the new rate to be implemented for 2020-21. However, the third-party rates for 2020-21 will remain the same as 2019-20 after this directive.

For the private car category, the regulator had proposed that the third-party rate be kept the same only for cars with engine capacity of more than 1500cc. For cars with engine capacity less than 1,000cc, the third party rate was supposed to increase from Rs 2,072 to Rs 2182, while for cars whose engine capacity is more than 1000cc but less than 1500cc, the rate would have increased from the current Rs 3221 to Rs 3383. There will be no change now and the rates will remain the same.

Rate for Two Wheeler Vehicles:

In the two-wheeler category, the premium rate for two-wheelers will remain at Rs 482 with an engine not more than 75cc. Those two-wheelers with engines above 75cc and less than 150cc will continue to be rated as the current Rs 752 for 2020-21. Similarly, for two-wheelers that are more than 150cc and less than 350cc, the current rate of Rs 1193 and those above 350 cc will remain the same as the present Rs 2323.

As long as lockdown continues, everyone should ensure that car insurance and bike insurance can be renewed online. It’s better to renew, even if your vehicle stands in the parking lot.