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

Engine Capacity	Single-year Premium Rates	Three-year Premium Rates
Not exceeding 1000cc	Rs 2,094	Rs 6,521
Between 1000cc – 1500cc	Rs 3,416	Rs 10,640
Above 1500cc	Rs 7,897	Rs 24,596

ICE-powered Private Two-Wheelers

Engine Capacity	Single-year Premium Rates	Five-year Premium Rates
Not exceeding 75cc	Rs 538	Rs 2,901
Between 75cc – 150cc	Rs 714	Rs 3,851
Between 150cc – 350cc	Rs 1,366	Rs 7,365
Above 350cc	Rs 2,804	Rs 15,117

Also Read: MoRTH Proposes To Allow Retrofitting Of CNG/LPG Kits In BS6 Petrol and Diesel Vehicles 

Private Electric Cars

Battery Capacity	Single-year Premium Rates	Three-year Premium Rates
Not exceeding 30kWh	Rs 1,780	Rs 5,543
30-65kWh	Rs 2,904	Rs 9,044
Above 65kWh	Rs 6,712	Rs 20,907

Private Electric Two-wheelers

Battery Capacity	Single-year Premium Rates	Five-year Premium Rates
Not exceeding 3kW	Rs 457	Rs 2,466
Between 3kW -7kW	Rs 607	Rs 3,273
Between 7kW – 16kW	Rs 1,161	Rs 6,260
Above 16kW	Rs 2,383	Rs 12,849

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

Engine Capacity	Basic Rate	Per Licensed Passenger
Under 1,000cc	Rs 6,040	Rs 1,162
1000cc – 1500cc	Rs 7,940	Rs 978
Above 1500cc	Rs 10,523	Rs 1,117

Also Read: MoRTH Launched Rewarding Scheme For Good Samaritan

ICE-powered Commercial Two-Wheelers

Engine Capacity	Basic Rate	Per Licensed Passenger
Not exceeding 75cc	Rs 861	Rs 580
Between 75cc – 150cc	Rs 861	Rs 580
Between 150cc – 350cc	Rs 861	Rs 580
Above 350cc	Rs 2,254	Rs 580

Electric Passenger Carrying Vehicles

Vehicle Type	Basic Rates	Per Licensed Passenger
4-wheeler (up to 6 passengers)	Rs 5,134 – 8,945 (depending on battery capacity)	Rs 831 – 988
Two Wheelers	Rs 732 – 1916 (depending on battery capacity)	Rs 493
e-rickshaw	Rs 1,648	Rs 789
Educational institution bus	Rs 10,363	Rs 633
Other than educational institution bus	Rs 12,192	Rs 745

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.