The premium rates for the mandatory third party insurance for car, bikes and other vehicles are set to go up by almost 40 percent with effect from April 1, 2016. The Insurance Regulatory Development Authority of India (IRDAI) notified the increase in the third party motor insurance premiums from next fiscal citing Cost Inflation Index (CII) which it said “has increased by 5.57 percent over the previous year. I.E From 1024 in FY2014-15 to 1081 in FY2015-16.”
The regulator has published a detailed list of new premiums on its website. For example, third party premium for cars upto 1000cc will be hiked by almost 40 percent from Rs. 1,468 currently to Rs 2,055 and for cars (1000cc - 1500cc) the new premium is Rs 2,237. For cars exceeding 1500cc, the new premium after a 25 percent hike is Rs 6,164.
In two wheelers, below 75cc, the new premium is Rs 569 up from Rs 519. In the category 75-150cc, the new premium stands at Rs 619, while that in the category of 150cc-350cc it is Rs.693. The third party motor insurance premium for two-wheelers above 350cc vehicles category is Rs 796.
The regulator however, has refrained insurers from cancelling policies already issued on old rates; new increased premium will be applicable from April 1, 2016.