Is The Reduced Third Party Insurance Premium by IRDAI Enough?

There were protests all over about the sharp hike in third party insurance premia for the current financial year (2017-18). After this, the IRDAI abated the premium payable by vehicle proprietors in its order issued on Monday (April 17). IRDAI stands for Insurance Regulatory Authority of India. The new order will supplant the prior one issued on March 28 that had set off the protest. All these protests were mostly from truckers. The new order will be implemented from April 1 this year.

The most recent order offers alleviation to vehicle proprietors in specific categories when contrasted with the March notice. However it denotes an expansion over the premia that won the last financial (2016-17) in a few sections. Let us look into the details about this reduction of the third party insurance on various types of vehicles:

• Reduced Third Party Insurance by IRDAI for Cars:

For private cars, with motor limit of up to 1,000 cc, the yearly third party premium is Rs 2,055. This is same as the last financial year. While for cars with motor limit in the vicinity of 1000 and 1,500 cc, it is Rs 2,863. This is marginally lower than Rs 3,132 proposed in March order, yet higher from Rs 2,237 as was in 2016-17. On the off chance that the motor limit surpasses 1,500 cc, the yearly premium goes up from Rs 6,164 last fiscal to Rs 7,890. This also denotes an abate from Rs 8,630 proposed in the March order.

• Reduced Third Party Insurance by IRDAI for Taxis:

Business traveler vehicles will pull in a yearly essential third party premium of Rs 6,396. They also have to pay an extra measure of Rs 1,230 for every authorized traveler if the motor limit is up to more than 1000 cc. This, when compared with the past financial year, has no change.

For vehicles surpassing motor limit of 1,000 cc and up to 1,500 cc, the essential premium stands is expanded to Rs 8,408. Also, the extra sum is Rs 1,035, unaltered from last financial.

For vehicles over 1,500 cc motor limit, the changed yearly essential premium is Rs 11,144 and the extra sum is Rs 1,183, which is also the same as the last financial year.

• Reduced Third Party Insurance by IRDAI for Bikes:

For bikes with motor limit of up to 75 cc, the premium stays unaltered at Rs 569 while for vehicles with over 75 cc yet beneath 150 cc motor limit; proprietors need to pay Rs 720 as against Rs 619 in 2016-17. Bikes with motor limit over 150 cc and beneath 350 cc will pull in Rs 887. This is against Rs 693 a year ago, however lower than Rs 970 as proposed a month ago.

• Reduced Third Party Insurance by IRDAI for Trucks:

The protection premia differ on the premise of load that extends from under 7,500 kg to that in abundance of 40,000 kg. The premium begins from Rs 14,390 (for load not surpassing 7,500 kg) to a most extreme of Rs 33,024 for vehicles conveying heap of more than 40,000 kg.  The distinction between the March and April requests is critical if there should arise an occurrence of load in the scope of >7,500 to 12,000 kg. The premium is abated to Rs 19,667 in the recent order from Rs 21,511 a month ago.

There is likewise another classification also. Merchandise carrying private vehicles — for which the rates are somewhat lower. They extends from Rs 7,938 to Rs 21,318, contingent upon load conveyed.

Third party insurance rates have likewise been issued for trailers, tractors and other different varieties of vehicles by the insurance controller.