The government releases a draft of the FY24 Motor Third Party Premium and Liability Rules

21 Jun 2023 , 11:49 AM

For the 2023–2024 fiscal year, the government on Tuesday proposed new basic premium rates for third-party motor insurance for various vehicle types, including two-wheelers, passenger cars, and commercial vehicles.

The base premium rates for motor third-party insurance cover have been recommended at Rs 2,094 for private automobiles 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 Insurance Regulatory and Development Authority of India (IRDAI) was involved in the development of the proposed Motor Third Party Premium and Liability Rules for the Financial Year (FY) 2023–24, the ministry reported.

The rates for two-wheelers up to and including 350 cc have been recommended at a range between Rs 714 to Rs 2,804, while the rates for two-wheelers up to and including 75 cc have been proposed at Rs 538.

The proposed cost for goods-carrying commercial vehicles (other than three-wheelers) up to a weight of 7,500 kg is Rs 16,049, while rates for vehicles weighing 40,000 kg or more range from Rs 27,186 to Rs 44,242.

Except for e-carts, the proposed charge for goods-carrying motorized three-wheelers and motorized pedal cycles is Rs 4,492.

The prices have been recommended 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 suggested prices for electric two-wheelers with a maximum power of 3 KW are Rs 457, 3 KW-7 KW (Rs 607), 7 KW-16 KW (Rs 1161), and for 16 KW and above (Rs 2,383).

The proposed tariff is Rs 13,642 for battery-powered goods-carrying commercial vehicles (other than three-wheelers) that weigh up to 7500 kg, 7500–12000 kgs (Rs 23,108), 12,000–20,000 kgs (Rs 30,016), 20,000–40,000 kgs (Rs 37,357), and those that weigh up to or more than 40,000 kg (Rs 37,606).

Buses used by educational institutions would receive a 15% discount, a private vehicle classified as a classic automobile would receive a 50% discount, and electric and hybrid electric vehicles would receive discounts of 15% and 7.5%, respectively.

The ministry also stated that a 6.5% base premium rate reduction has been suggested for 3-wheeled passenger-carrying vehicles, and it encourages feedback and proposals from all parties within a 30-day window.

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