As the fiscal year 2023-24 begins, one crucial aspect of vehicle ownership that should be noticed is third-party motor insurance. Whether you own a car, bike, or two-wheeler, understanding the premiums and coverage is essential before you buy car insurance online. In this article, we’ll explore the premiums for third-party motor insurance for various vehicles, helping you make informed decisions. Claims are subject to terms and conditions set forth under the motor insurance policy.
For the 2023–24 fiscal year, the Centre released the base premium rates for third-party motor insurance for various vehicle types, including passenger cars, commercial vehicles, and two-wheelers. Claims are subject to terms and conditions set forth under the motor insurance policy.
On June 14 2023, the Ministry of Road Transport and Highways posted a notice announcing the proposed rates on the E-Gazette website.
The ministry worked with the Insurance Regulatory and Development Authority of India (IRDAI) to develop the draught Motor Third Party Premium and Liability Rules for FY2023–24. The government has not altered the current fiscal year’s third-party car insurance premium rates. #
Premium Rates For Third-Party Insurance For Bikes And Cars
According to the ministry’s draft notification, the base premium rates for third-party insurance have been maintained at Rs 2,094, Rs 3,416 for private cars with engines between 1000 and 1500 cc, and Rs 7,897 for vehicles with engines over 1500 cc.
The proposed base premium rate for two-wheelers with engines under 75 cc is Rs 538. At the same time, the base premium rates for two-wheelers 350 cc and more extensive range between Rs 714 and Rs 2,804.
Costs Of Third-Party Coverage For Commercial Vehicles
The rates for commercial vehicles carrying up to 40,000 kg and above range from Rs 27,186 to Rs 44,242, while the proposed rates for goods-carrying commercial vehicles (other than 3-wheelers) not exceeding 7500 kg are Rs 16,049 and Rs 27,186, respectively. A car insurance calculator can help you estimate the costs of your premium. Claims are subject to terms and conditions set forth under the motor insurance policy.
Except for e-carts, the proposed rate for motorised three-wheelers and pedal cycles transporting goods is Rs 4,492.
Private electric vehicles with motors under 30 KW are eligible for base premium rates of Rs 1,780. The suggested rates for electric cars between 30 KW and 65 KW are Rs 2, 904. Owners of electric vehicles with an output greater than 65 KW must pay Rs 6,712.
The proposed rates for electric two-wheelers with a maximum power of 3 KW are Rs 457, 3 KW–7 KW, 7 KW–16 KW, Rs 1161, and Rs 2,383 for electric two-wheelers with a maximum power of 16 KW.
The ministry has suggested concessions of 15% for buses used by educational institutions, 50% for privately owned cars listed as vintage cars, and 15% for electric vehicles.
Ensuring that you have the right third-party motor insurance coverage is a legal requirement and a responsible choice when you buy car insurance online. It provides financial protection in case of accidents and damage to third parties, giving you peace of mind as a vehicle owner. Car insurance renewal can often be done conveniently online, allowing policyholders to maintain continuous coverage without the need for extensive paperwork or in-person visits. Claims are subject to terms and conditions set forth under the motor insurance policy. *
* Standard T&C Apply
# Visit the official website of IRDAI for further details.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
