IRDAI proposes revised insurance premium rates for bikes and cars

Starting April 1, insurance regulator Insurance Regulatory and Development Authority of India (IRDAI) has proposed to reduce third party premiums for FY19. IRDAI has also proposedtofacilitate insurers to come up with cheaper comprehensive insurance policies that will benefit the vehicle owners.

IRDA has proposed to reduce the third-party premium rate for two-wheelers having less than 75 cc engine. The proposal reduces the cost of third-party premium from Rs 569 to Rs 427. For two-wheelers exceeding engine capacity 75cc but not exceeding 150cc, the rate will still remain at Rs 569.

However, for two-wheelers exceeding 150cc engine but not exceeding 350cc, IRDAI has proposed to increase the premium to Rs 2323 for bike above 350cc and Rs 985 for two-wheeler exceeding 150cc but not exceeding 350cc.

The premium rateproposed for small cars not exceeding 1000cc have been reduced from Rs 2055 in FY18 to Rs 1850 for FY19.The premium rates for cars with engine capacity between 1000cc and 1500cc and those exceeding 1500cc will remain the same at Rs 2863 and Rs 7890, respectively.