Motor insurance set to get costlier from April 2016

Motor insurance premium rates are set to rise from April 1, 2016. The Insurance Regulatory and Development Authority of India (IRDAI) has proposed a hike in the premium rates of third-party insurance during the annual revision.

According to the proposal, the insurance premium for private cars with engine capacities not exceeding 1,000cc, will be hiked by 30%. For cars with engines larger than 1,000cc, the proposed hike is 25%. For commercial vehicles, insurance premiums may rise by 25-30%.

Insurance premiums for three-wheelers are also expected to increase. While rates for regular autorickshaws will be hiked by Rs. 400, those for e-rickshaws will be hiked by Rs. 59. For share autos with a seating capacity of 6 and above, the premiums are likely to be raised from Rs. 959 (current rate) to Rs. 2,059 - a hike of 115%.

Coming to two-wheelers, insurance premium rates for vehicles with engines smaller than 350cc could be hiked by 10-15%. However, for bikes with engines larger than 350cc, the IRDAI proposes a cut in insurance premium rates by 10%.

Source: ET Auto