The Insurance Regulatory and Development Authority of India (IRDA) announced Thursday that the motor third-party insurance premiums for bikes, cars and commercial vehicles would not be increased for this financial year.
The premiums typically are revised by 10-40% every year effective April 1, however, last year saw rate cuts of 10-20% for bikes, cars and taxis, the Times of India reported.
The regulator determines rates only for third party motor cover allowing insurers to fix their own rates for owned-damage and personal accident.
IRDA's decision comes as a welcome surprise for customers as the market anticipated a rise of 20-30% in insurance rates this year, the daily said.
The regulatory authority informed the insurance companies Thursday that the premium rates for motor third party liability insurance cover will remain unchanged until further notice. "Insurers shall continue to charge the rates currently being charged for Motor Third Party Liability Insurance Cover from 1st April, 2019 onwards until further orders," the order said.
The present rates for small mopeds, small capacity scooters and two-wheelers with engine capacity below 75 cc shall remain at Rs 427. The rates for scooters and motorbikes with engine capacity between 75-150 cc will be Rs 720 and for high-powered bikes Rs 985, the report stated.
The premium rates for small car owners shall remain at Rs 1,850, for SUVs above 1,500 cc Rs 7,890 and for Sedans between 1,000-1,500 cc the rates shall remain at Rs 2,863 respectively. Rates for auto rickshaws and e-rickshaws are Rs 2,595 and Rs 1,685 respectively.
Rates for taxis and smaller commercial cars shall remain the same at Rs 5,437 per annum, whereas entry-level sedans might have to pay Rs 7,417 a year, as per the report.