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May 23, 2019
While proposing the revision in the third-party insurance premium rates, the regulator has also introduced some welcome features in the new exposure draft.
New rates to be around 15% higher
IRDAI has proposed an increase in excess of 14% for private cars, 21.11% for two-wheelers and around 11% for transport vehicles. For luxury cars and super bikes however, there is no change proposed in the third-party insurance premium.
The third-party insurance premium rates will be in two categories – category I – for older vehicles which have a registration date earlier than September 1, 2018 and category II – for new vehicles with a registration date falling on 1 September 2018 or later.
To promote environment friendly vehicles, electric vehicles will get 15% discount
School buses fall in a new separate category
The increase recommended for school buses is 5.29% for the basic rate and 5.34% per licensed passenger in the draft proposal. IRDAI has said that school buses are those which are registered in the name of a school and used only for the purpose of transporting students to or from a school or on school related trips.