Chennai: The insurance regulator has increased the motor third party premiums of private cars by around 12 per cent, less than what it had proposed in the draft. The new premiums will take effect from June 16.
Premium for private cars not exceeding 1,000 cc has been increased to Rs 2,072 from Rs 1,850 last year, a hike of 12 per cent. The Insurance Regulatory and Development Authority of India (Irdai) had earlier proposed a hike of 14.6 per cent to Rs 2,120.
For cars between 1,000 cc and 1,500 cc, the premium is up 12.5 per cent to Rs 3,221, lower than the proposed premium of Rs 3,300. The premium for cars exceeding 1,500 cc will remain at Rs 7,890 as proposed earlier.
Similarly, the TP premium of two-wheelers of less than 75 cc has been raised by 12.8 per cent to Rs 482 from Rs 427. For two-wheelers not exceeding 150 cc, premium will go up by 4.4 per cent to Rs 752 and those below 350 cc by 21 per cent to Rs 1,193. However, no rate hike has been proposed for superbikes or those exceeding 350 cc. The proposed rates of two-wheelers have been retain-ed by Irdai even after sta-keholders consultations.
The long term policy premiums—three-year for private cars and five-year for two-wheelers ---have been retained without any change.
The regulator has further introduced two new categories....