Govt To Increase Third Party Motor Insurance Rates From June 1

For the very first time, the Ministry of Road Transport and Highways (MoRTH), in consultation with the Insurance Regulatory and Development Authority of India (IRDAI) has announced an increase in the third-party motor insurance premium, effective from 1st June 2022. Here’re the new base premiums for various categories: –

ICE-powered Private Cars

ICE-powered Private Two-Wheelers

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Private Electric Cars

Private Electric Two-wheelers

ICE-powered Commercial Four-Wheelers (carrying capacity of up to 6 passengers)

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ICE-powered Commercial Two-Wheelers

Electric Passenger Carrying Vehicles

Discounts for various vehicles

The following exemptions in third party insurance premium are also allowed in the said rules-

• 15% discount has been provided for Educational institution buses.
• A discounted price of 50% of the premium has been allowed to a private car registered as Vintage Car.
• A discount of about 15 % and 7.5% on the premium has been allowed for Electric and Hybrid Electric Vehicles, respectively.