Buying a new car, bike to become more expensive from June 1st

If you are planning to buy a new car or bike from June 1, then get ready to pay more, as the government has increased the third party motor insurance (TP) premium for various categories of cars.

The Ministry of Road Transport and Highways (MoRTH) has recently released the notification regarding the price increase in third party insurance which will result in a price increase for all cars in India including four-wheelers and two-wheelers.

According to the official notification of the ministry, private cars with an engine capacity of 1,000 cc will pull rates of Rs 2,094 compared to Rs 2,072 in 2019-2020. Private cars with an engine capacity between 1,000 cc and 1,500 cc will draw rates of Rs 3,416 compared to Rs 3,221.

A two-wheeler with a 150cc-350 cc engine capacity will attract a premium of Rs 1,366 and for two-wheelers, more than 350 cc, the modified premium will be Rs 2,804.

READ | Bank Holiday Alert! Banks should remain closed for 8 days in June 2022, check the full list

Third party insurance for private cars:

Cars with engine up to 1000 cc: Rs 2,094

Cars above 1000 cc but not more than 1500 cc: Rs 3,416

For cars above 1500 cc: Rs 7,897

For two-wheelers:

For two-wheelers up to 75 cc: Rs 538

For two wheels more than 75 cc but not more than 150 cc: Rs 714

For two-wheelers of more than 150 cc but not more than 350 cc: Rs 1,366

For two-wheelers over 350 cc: Rs 2,804

third party insurance

Third party coverage is for non-personal damage and is required along with the personal damage coverage that a car owner must purchase.

This insurance cover is for any damage to a third party, generally a person, caused by a traffic accident.

Goods with commercial vehicles (excluding tricycles):

Gross car weight not exceeding 7,500 kg: Rs 16,049

Gross car weight greater than 7,500 kg but not more than 12,000 kg: Rs 27,186

Gross car weight greater than 12,000 kg but not more than 20,000 kg: Rs 35,313

Gross car weight greater than 20,000 kg but not more than 40,000 kg: Rs 43,950

Gross vehicle weight greater than 40,000 kg: Rs 44,242

READ | 70,000 petrol pumps are coming out in protest against oil companies demanding higher commission

Following a two-year moratorium on the Covid-19 pandemic, the revised third-party insurance premium will take effect on June 1.

Earlier, TP rates were informed by the Insurance Regulatory and Development Authority of India (IRDAI). It is the first time that the MoRTH in consultation with the insurance regulator has informed the TP rates.

Buying a new car, bike to become more expensive from June 1st

If you are planning to buy a new car or bike from June 1, then get ready to pay more, as the government has increased the third party motor insurance (TP) premium for various categories of cars.

The Ministry of Road Transport and Highways (MoRTH) has recently released the notification regarding the price increase in third party insurance which will result in a price increase for all cars in India including four-wheelers and two-wheelers.

According to the official notification of the ministry, private cars with an engine capacity of 1,000 cc will pull rates of Rs 2,094 compared to Rs 2,072 in 2019-2020. Private cars with an engine capacity between 1,000 cc and 1,500 cc will draw rates of Rs 3,416 compared to Rs 3,221.

A two-wheeler with a 150cc-350 cc engine capacity will attract a premium of Rs 1,366 and for two-wheelers, more than 350 cc, the modified premium will be Rs 2,804.

READ | Bank Holiday Alert! Banks should remain closed for 8 days in June 2022, check the full list

Third party insurance for private cars:

Cars with engine up to 1000 cc: Rs 2,094

Cars above 1000 cc but not more than 1500 cc: Rs 3,416

For cars above 1500 cc: Rs 7,897

For two-wheelers:

For two-wheelers up to 75 cc: Rs 538

For two wheels more than 75 cc but not more than 150 cc: Rs 714

For two-wheelers of more than 150 cc but not more than 350 cc: Rs 1,366

For two-wheelers over 350 cc: Rs 2,804

third party insurance

Third party coverage is for non-personal damage and is required along with the personal damage coverage that a car owner must purchase.

This insurance cover is for any damage to a third party, generally a person, caused by a traffic accident.

Goods with commercial vehicles (excluding tricycles):

Gross car weight not exceeding 7,500 kg: Rs 16,049

Gross car weight greater than 7,500 kg but not more than 12,000 kg: Rs 27,186

Gross car weight greater than 12,000 kg but not more than 20,000 kg: Rs 35,313

Gross car weight greater than 20,000 kg but not more than 40,000 kg: Rs 43,950

Gross vehicle weight greater than 40,000 kg: Rs 44,242

READ | 70,000 petrol pumps are coming out in protest against oil companies demanding higher commission

Following a two-year moratorium on the Covid-19 pandemic, the revised third-party insurance premium will take effect on June 1.

Earlier, TP rates were informed by the Insurance Regulatory and Development Authority of India (IRDAI). It is the first time that the MoRTH in consultation with the insurance regulator has informed the TP rates.


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