Insurance Regulatory and Development Authority of India (IRDAI) has deferred the hike in 3rd party motor insurance premium for FY2020-21 due to the Coronavirus lockdown.
Existing insurance premium rates for both 4-wheelers and 2-wheelers have been extended beyond March 31, 2020, until further notice.
It has been reported that IRDAI had proposed a substantial increase in the third-party motor insurance premium rates for FY2020-21.
For cars with engines below 1,000cc, premiums would have gone up from Rs. 2,072 to Rs. 2,182. For cars between 1,000cc and 1,500cc, third party premium was supposed to increase from Rs. 3,221 to Rs. 3,383. For vehicles with engine capacity of over 1,500cc, there was no hike proposed from the existing Rs 7,890.
The third-party premium rate for 2-wheelers with engines below 75cc was proposed to be hiked to Rs. 506 and for 2-wheelers between 75cc and 150cc, the premium was set to go up from Rs. 752 to Rs. 769. For 2-wheelers between 150cc and 350cc as well as 350cc and above, the proposed premium rates were Rs. 1,301 and Rs. 2,571 respectively.
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