India jacks up third-party motor insurance premiums 

The increase takes effect on 1 June.

India will increase third-party insurance premiums on motor insurance vehicles beginning 1 June, raising the insurance costs for cars and two-wheelers.

According to the new rates released by the Ministry of Road Transport and Highways (MoRTH), private cars with an engine capacity of 1,000 cc will have their rates increase to $26.95, from $26.67 on 2019 and 2020.

Meanwhile, private cars with engine capacity between 1,000 cc and 1,500 cc will be increased from $41.46 to $43.97. Rates for cars above 1,500 cc will, however, see a drop in premiums from $101.64 to $101.55

Two-wheelers over 150 cc but not exceeding 350 cc will have to pay $17.58 in premiums whilst those with over 350 cc will have its premiums revised to $36.09.

EVs and commercial vehicles

For hybrid electric vehicles (EVs), a discount of 7.5% was announced by the MoRTH. Private EVs not exceeding 30 KW will have premiums set at $22.91 whilst those exceeding 30 KW but not more than 65 KW will have its premiums set at $37.38.

On the other hand, premiums for goods carrying commercial vehicles exceeding 12,000 kg but not more than 20,000 kg will increase to $454.52 from $430.08. Goods carrying vehicles exceeding 40,000 kg will have its premiums increase to $569.45 from $534.94 back in 2019 to 2020.

Third-party insurance is a cover for any collateral damage to a third party due to a road accident. Third-party insurance is mandatory for vehicle owners, along with own damage insurance.