The Ministry of Road Transport and Highways (MoRTH) has declared that beginning June 1, 2022, the third-party vehicle insurance premium in India will be hiked. For different types of cars, the hike will vary. As a result, car prices in India are expected to rise once more.
New passenger cars with engines smaller than 1,000cc will have a 23 percent higher insurance price, according to MoRTH's amended tariffs. The third- party insurance rate for cars with engines between 1,000 and 1,500cc has climbed by 12%, while insurance expenses for cars with engines greater than 1,500cc have increased by 1%.
The third-party insurance cost for electric cars with a peak power of up to 30 kW has been raised by 27%. Insurance premiums have increased by 11% for cars with a power rating between 30 and 65 kW. Electric four-wheelers with a power output of 65 kW or more now have to pay a 1% greater third-party insurance premium than before.
|Private Cars – Single year premium|
|Not exceeding 1000cc||Rs. 2,094|
|Exceeding 1000 cc but not exceeding 1500cc||Rs. 3,416|
|Exceeding 1500cc||Rs. 7,897|
|Private Cars – Three year single premium|
|Not exceeding 1000cc||Rs. 6,521|
|Exceeding 1000 cc but not exceeding 1500cc||Rs. 10,640|
|Exceeding 1500cc||Rs. 24,596|
|Two Wheelers – Single year premium|
|Not exceeding 75cc||Rs. 538|
|Exceeding 75cc but not exceeding 150cc||Rs. 714|
|Exceeding 150cc but not exceeding 350cc||Rs. 1,366|
|Exceeding 350cc||Rs. 2,804|
|Two Wheelers – Five year single premium|
|Not exceeding 75cc||Rs. 2,901|
|Exceeding 75cc but not exceeding 150cc||Rs. 3,851|
|Exceeding 150cc but not exceeding 350cc||Rs. 7,365|
|Exceeding 350cc||Rs. 15,117|
The increase is far more for two-wheelers than for passenger cars. Two-wheelers with engines under 75cc now face a 177 percent increase in Third-party insurance premiums. The insurance rate has been hiked by 17% for models with engines ranging from 75cc to 150cc.
|Private Electric Cars – Single year premium|
|Not exceeding 30 KW||Rs. 1,780|
|Exceeding 30 KW but not exceeding 65 KW||Rs. 2,904|
|Exceeding 65 KW||Rs. 6,712|
|Private Electric Cars – Three year single premium|
|Not exceeding 30 KW||Rs. 5,543|
|Exceeding 30 KW but not exceeding 65 KW||Rs. 9,044|
|Exceeding 65 KW||Rs. 20,907|
|Electric Two Wheelers – Single year premium|
|Not exceeding 3 KW||Rs. 457|
|Exceeding 3 KW but not exceeding 7 KW||Rs. 607|
|Exceeding 7 KW but not exceeding 16 KW||Rs. 1,161|
|Exceeding 16 KW||Rs. 2,383|
|Electric Two Wheelers – Five year single premium|
|Not exceeding 3 KW||Rs. 2,466|
|Exceeding 3 KW but not exceeding 7 KW||Rs. 3,273|
|Exceeding 7 KW but not exceeding 16 KW||Rs. 6,260|
|Exceeding 16 KW||Rs. 12,849|
The third-party insurance cost for motorbikes and scooters with engines ranging from 150cc to 350cc has been increased by 35%. Two-wheelers with engines larger than 350cc now have a 16% higher insurance rate than they had previously.
Third-party insurance prices for electric two-wheelers have also risen. The premium is now 177 percent greater for machines rated 3 kW or below. Insurance rates for models rated between 3 kW and 7 kW have increased by 17%, while insurance costs for models rated between 7 kW and 16 kW have increased by 35%.
Buyers of electric two-wheelers with a power output of 16 kW or more would have to pay a 16 percent greater premium than before.