Good News Third party motor insurance to cost less for small cars

[rahul1117kumar]

“The third party rates have been reduced for the smaller cars like Alto, Kwid etc by 10% and have been kept unchanged for the mid-segment and high-end cars. This is a good news for car owners as there was a gradual increase in the TP rates for all car segments for last 4-5 years, especially high-end cars & SUVs,” says Animesh Das, Head-Product Strategy, ACKO.

The IRDAI, in fact, notified the new premium rates applicable to the third party insurance on Wednesday. The TP rates on small cars (not exceeding 1000 cc) have been brought down to Rs 1,850 from the existing Rs 2,055, which is a 10% reduction. For other categories of private cars, IRDAI has kept the TP rates unchanged – Rs 2,863 for cars exceeding 1,000cc to 1,500cc and Rs 7,890 for cars exceeding 1,500cc.

Similarly, for two-wheelers having an engine capacity less than 75 cc, the rates have been reduced to Rs 427 from the current Rs 569. For two-wheelers exceeding 75 cc but not exceeding 150, rates have been kept unchanged at Rs 720, but for bikes above 150 cc the rates have been increased because of the higher claims in this segment.

Good news! Third party motor insurance to cost less for small cars