After protests over the steep hike in third party insurance premia for the current fiscal (2017-18), the Insurance Regulatory Authority of India (IRDAI) moderated the premium payable by vehicle owners in its order issued on Monday (April 17). The new order, effective from April 1 this year, will replace the earlier one issued on March 28 that triggered a protest, mainly from truckers.
The latest order gives relief to vehicle owners in certain categories when compared to the March notification, though it marks an increase over the premia that prevailed last fiscal (2016-17) in some brackets.
Cars
For private cars with engine capacity of up to 1,000 cc, the annual third party premium is Rs 2,055, same as last fiscal while for cars with engine capacity between 1000 and 1,500 cc, it is Rs 2,863, slightly lower than Rs 3,132 proposed in March order but higher from Rs 2,237 applicable in 2016-17.
If the engine capacity exceeds 1,500 cc, the annual premium goes up from Rs 6,164 last financial year to Rs 7,890, marking a reduction from Rs 8,630 proposed in the March order.
Taxi service
Commercial passenger vehicles will attract an annual basic third party premium of Rs 6,396 and an additional amount of Rs 12,30 per licensed passenger if the engine capacity is up to more than 1000 cc. When compared with the previous financial year, there is no change.
For vehicles exceeding engine capacity of 1,000 cc and up to 1,500 cc, the basic premium stands increased to Rs 8,408 and the additional amount is Rs 1,035, unchanged from last fiscal.
For vehicles above 1,500 cc engine capacity, the revised annual basic premium is Rs 11,144 and the additional amount is Rs 1,183, marking status quo from last fiscal.
Scooters
For scooters with engine capacity of up to 75 cc, the premium remains unchanged at Rs 569 while for vehicles with above 75 cc but below 150 cc engine capacity, owners have to pay Rs 720 as against Rs 619 in 2016-17. Scooters with engine capacity above 150 cc and below 350 cc will attract Rs 887 as against Rs 693 last year, though lower than Rs 970 as proposed last month.
Trucks (goods-carrying public vehicles)
The insurance premia vary on the basis of load that ranges from less than 7,500 kg to that in excess of 40,000 kg. The premium starts from Rs 14,390 (for load not exceeding 7,500 kg) to a maximum of Rs 33,024 for vehicles carrying load of more than 40,000 kg.
The difference between the March and April orders is significant in case of load in the range of >7,500 to 12,000 kg. The premium has been brought down to Rs 19,667 in the latest order from Rs 21,511 last month.
There is also another category — goods-carrying private vehicles — for which the rates are slightly lower, ranging from Rs 7,938 to Rs 21,318, depending on load carried.
Third-party insurance rates have also been issued for trailers, tractors and other vehicles by the insurance regulator.
It may be recalled that truckers in many parts of India had gone on strike in protest against the order issued on March 28 this year.
