MoRTH has updated the third-party insurance premium and liabilities for motor vehicles in India, and the new prices will come into effect on June 1
The Ministry of Road Transport and Highways (MoRTH) has announced that the third-party motor insurance premium in India will be increased from 1st June 2022. The hike is different for different categories of vehicles. Due to this, automobile prices in India are set to increase yet again.
As per the revised rates announced by MoRTH, new passenger cars with engines smaller than 1,000cc will attract a 23 per cent higher insurance premium. For cars with engine sizes between 1,000cc and 1,500cc, the insurance premium has been increased by 12 per cent, while for cars with engines larger than 1,500cc, the insurance costs are now 1 per cent higher.
For electric cars rated at a peak power of up to 30 kW, the third-party insurance premium has been hiked by 27 per cent. For cars with a power rating between 30 kW and 65 kW, the insurance costs are now 11 per cent higher. Electric four-wheelers rated at 65 kW or higher now have to pay a 1 per cent higher premium compared to before.
| Private Cars – Single year premium | |
| Not exceeding 1000cc | Rs. 2,094 |
| Exceeding 1000 cc but not exceeding 1500cc | Rs. 3,416 |
| Exceeding 1500cc | Rs. 7,897 |
| Private Cars – Three year single premium | |
| Not exceeding 1000cc | Rs. 6,521 |
| Exceeding 1000 cc but not exceeding 1500cc | Rs. 10,640 |
| Exceeding 1500cc | Rs. 24,596 |
| Two Wheelers – Single year premium | |
| Not exceeding 75cc | Rs. 538 |
| Exceeding 75cc but not exceeding 150cc | Rs. 714 |
| Exceeding 150cc but not exceeding 350cc | Rs. 1,366 |
| Exceeding 350cc | Rs. 2,804 |
| Two Wheelers – Five year single premium | |
| Not exceeding 75cc | Rs. 2,901 |
| Exceeding 75cc but not exceeding 150cc | Rs. 3,851 |
| Exceeding 150cc but not exceeding 350cc | Rs. 7,365 |
| Exceeding 350cc | Rs. 15,117 |
For two-wheelers, the hike is significantly higher than for passenger cars. Two-wheelers with engines smaller than 75cc have to pay a 177 per cent higher insurance premium now. For models with engine size varying between 75cc and 150cc, the insurance premium has been raised by 17 per cent.
For motorcycles and scooters with 150cc to 350cc engines, the third-party insurance premium has been hiked by 35 per cent. As for two-wheelers with engines larger than 350cc, they now attract a 16 per cent higher insurance premium than before.
| Private Electric Cars – Single year premium | |
| Not exceeding 30 KW | Rs. 1,780 |
| Exceeding 30 KW but not exceeding 65 KW | Rs. 2,904 |
| Exceeding 65 KW | Rs. 6,712 |
| Private Electric Cars – Three year single premium | |
| Not exceeding 30 KW | Rs. 5,543 |
| Exceeding 30 KW but not exceeding 65 KW | Rs. 9,044 |
| Exceeding 65 KW | Rs. 20,907 |
| Electric Two Wheelers – Single year premium | |
| Not exceeding 3 KW | Rs. 457 |
| Exceeding 3 KW but not exceeding 7 KW | Rs. 607 |
| Exceeding 7 KW but not exceeding 16 KW | Rs. 1,161 |
| Exceeding 16 KW | Rs. 2,383 |
| Electric Two Wheelers – Five year single premium | |
| Not exceeding 3 KW | Rs. 2,466 |
| Exceeding 3 KW but not exceeding 7 KW | Rs. 3,273 |
| Exceeding 7 KW but not exceeding 16 KW | Rs. 6,260 |
| Exceeding 16 KW | Rs. 12,849 |
Electric two-wheelers have also seen an increase in third-party insurance rates. For models rated 3 kW or lower, the premium is now 177 per cent higher. For models rated between 3 kW and 7 kW, the same is now 17 per cent more expensive, while for models rated from 7 kW to 16 kW, the insurance rates are 35 per cent higher than before.
For electric two-wheelers rated 16 kW or higher, buyers will have to pay a 16 per cent higher premium than before.