As we approach 2024, the landscape of third-party liability insurance is poised for significant changes. In this article, we’ll explore the anticipated transformations in third-party motor insurance that are on the horizon.
For the 2023–24 fiscal year, the government proposed new base premium rates for third-party vehicle insurance for various vehicle categories, including two-wheelers, passenger cars, and commercial vehicles. The base premium rates for Motor Third Party Insurance Cover have been proposed at Rs 2,094 for private cars with less than 1,000 cc, Rs 3,416 for cars with 1000–1500 cc, and Rs 7,897 for cars with more than 1500 cc, according to a draft notification released by the Ministry of Road Transport and Highways (MoRTH).
The ministry reported that the Insurance Regulatory and Development Authority of India (IRDAI) was involved in developing the draft Motor Third Party Premium and Liability Rules for the Financial Year (FY) 2023–24. #
The rates for two-wheelers up to and including 350 cc have been proposed at Rs 714 and Rs 2,804, while the rates for two-wheelers up to and including 75 cc have been proposed at Rs 538.
The proposed rate for goods-carrying commercial vehicles (other than three-wheelers) weighing up to 7,500 kg is Rs 16,049, while those carrying 40,000 kg or more range from Rs 27,186 to Rs 44,242.
Except for e-carts, the proposed rate for goods-carrying motorised three-wheelers and pedal cycles is Rs 4,492. The rates have been proposed at Rs 1,780 for private e-cars under 30 KW, Rs 2,904 for e-cars between 30 KW and 65 KW, and Rs 6,712 for e-cars over 65 KW.
The proposed rates for electric two-wheelers with a maximum power of 3 KW are Rs 457, Rs 607, Rs 1,161 and Rs 2,383 for e-two-wheelers with a power of 7 KW to 16 KW.
The proposed rate is Rs 13,642 for battery-powered goods-carrying commercial vehicles (other than three-wheelers) with a weight limit under 7,500 kg, Rs 23,108 for those between 7,500 and 1,200 kg, Rs 30,016, Rs 37,357 for those between 20,000 and 40,000 kg, and Rs 37,606 for those over 40,000 kg.
Buses used by educational institutions would receive a 15% concession, a private vehicle registered as a vintage car would receive a 50% concession and electric and hybrid electric vehicles would receive concessions of 15% and 7.5%, respectively. As far as rates of insurance go, you can use a car insurance calculator to get an estimate of the amount of insurance premiums that you would need to pay.
The ministry also stated that a 6.5% base premium rate reduction had been proposed for 3-wheeled passenger-carrying vehicles, and it invites feedback and suggestions from all parties within a 30-day window.
2024 promises to be a year of transition for third-party liability insurance. As we move forward, staying informed and prepared for these developments will be crucial to ensure motor vehicle safety and coverage on our roads for making a motor insurance claim.
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