The government has proposed to revise the TP premium, hence, third-party insurance of vehicles will become costlier. Read the details below.
Recently notified via a draft notification; the Ministry of Road Transport will soon be revising the premium rates of third-party insurance for motor vehicles. This revision has been on a hold since two years due to the pandemic inclusion.
According to the draft, the government has proposed a revision of premium rates for insurance offered for motor vehicles. This will include a hike in renewal prices for two-wheelers as well as four-wheelers. These premium rates are expected to become live from the upcoming 1st April 2022.
Earlier the TP insurance revision rates were notified by the insurance regulatory body IRDAI but this will also become the first time of the government announcing the revisional rates with the subsidiary help of the insurance regulatory body.
According to the drafts, the new rates for third-party car insurance will be as follows:
| Cubic Capacity | Old Rates (19-20) | New Rates (2022) |
|---|---|---|
| 1,000 cc or less | Rs 2,072 | Rs 2,094 |
| 1,000 - 1,500 cc | Rs 3,221 | Rs 3,416 |
| 1,500 cc or more | Rs 7,890 | Rs 7,897 |
While the revised rates for the two-wheeler third party shall not be very marginal. The 150-350 cc segment two-wheelers will now have to shell Rs 1,366 for getting third-party insurance while any two-wheeler above 350cc mark will be now be insured at a new rate of Rs 2,804.
While the increment in the revision is not very marginal, in this pandemic hit era consumers are continuously looking for ways to save on their daily expenses. Considering this and considering growing electric vehicles sales; the government has decided to provide a discount of 15 percent for private electric cars, electric two-wheelers, electric good-carrying commercial vehicles, and electric passenger carrying vehicles. Hybrid vehicles have also been accounted for with a discount of 7.5 percent in the new revision of insurance premium rates; thus pushing the sales of hybrid as well as electric vehicles.
Also Read - Exclusive: 2022 Honda CB350 RS And H'Ness 350 New Colours Revealed
The electric vehicles with a 30kW battery will now be insured in Rs 1,780 while the electric vehicles equipped with a battery between 30-65 kW will be charged with Rs 2,904 insurance premium. The highest increase in the new insurance rate revision will be seen on the electric good carrying vehicles. EV commercial vehicles with payload capacity between 12-20 tons will now have to shell Rs 35,313 as compared to the previous Rs 33,414 insurance premium rates.
The Ministry of Transport has also asked for suggestion via a public forum and the before the implementation of new rates the suggestions will be considered thoroughly.
Tell us about your thoughts over this rate revision by the government via commenting down below. Also, subscribe to our 91Wheels YouTube channel and become a part of our 91Wheels WhatsApp community to get all the latest automotive world-related updates.
