Your RTO details
RTO name
Code
City
Address
Pincode
Contact No.
  • City & RTO
  • Car Brand
  • Car Model
  • Car Fuel Type
  • Car Variant
  • Registration Year
Get Car Insurance starting at only ₹2,094/year #
Compare & Save upto 85%* on Car Insurance
  • Renew policy in 2 minutes*

  • 21+ Insurers to choose

  • 1.2Cr+ Vehicles Insured

Processing
    Other models
    Other variants
    Select your variant
    View all variants
      Secure
      We don’t spam
      View Prices
      Please wait..
      By clicking on “View Prices”, you agree to our Privacy Policy & Terms of Use
      Get Updates on WhatsApp
      Select Make
      Select Model
      Fuel Type
      Select variant
      Registration year
      Registration month
      Save & update
      Please wait..
      Search with another car number?

      We have found best plans for you!! Our advisor will get in touch with you soon.

      Increase in Motor TP premium and its Impact

      Fall in global fuel prices over last year has brought cheer to the car users as the cost of maintaining four wheelers has gone down.

      Read more

      However, the cheer may not continue for long as the new IRDA proposal is bound to increase the motor insurance premium. This hike will be sixth in as many years by the regulatory body.

      This increase is aimed at reducing the losses faced by the insurance companies in their motor insurance segment.

      In 2015, motor insurance was the largest non-life insurance segment with a market share of 44% and a YoY growth of 10.5%. According to IRDA, motor insurance had a high claims ratio of 77.14%. Motor Third party insurance is compulsory for all vehicles driven on Indian roads.

      It has two segments; own damage cover, which is optional, and the mandatory third-party cover.The latter covers the liability arising from third party claims due to accidents.

      The third party motor insurance premiums are expected to increase across all the segments be it two-wheeler or four-wheeler with commercial vehicles bearing the maximum impact.

      The table below shows the proposed increase in the third party motor insurance premium

      Category of Vehicle

      Existing Premium

      Proposed premium from 1 April 2016

      % Change

      Private Cars – Not Exceeding 1000 CC

      1468

      1908

      30

      Private Cars – Above 1000 CC but below 1500 CC

      1598

      1998

      25

      Private Cars – Above 1500 CC

      4931

      6164

      25

      Two Wheelers – Not Exceeding 75 CC

      519

      569

      10

      Two Wheelers – Above 75 CC but below 150 CC

      538

      619

      15

      Two Wheelers – Above 150 CC but below 350 CC

      554

      693

      25

      Two Wheelers – Above 350 CC

      884

      796

      -10

      Commercial Vehicle (Public) – Above 12000 KG but Below 20000 KG

      19,362

      22,577

      15

      Commercial Vehicle (Public) – Above 20000 KG but Below 40000 KG

      19,766

      24,708

      25

      Commercial Vehicle (Public) – Above 40000 KG

      19,846

      25,800

      30

      Commercial Vehicle (Private) – Not Exceeding 7500 KG

      8,721

      7,849

      -10

      Commercial Vehicle (Private) – Above 7500 KG but Below 12000 KG

      8,868

      11,528

      30

      Commercial Vehicle (Private) – Above 12000 KG but Below 20000 KG

      8,972

      9,390

      5

      Commercial Vehicle (Private) – Above 20000 KG but Below 40000 KG

      11,149

      12,821

      15

      What is its impact?

      A quick analysis of the table above can give you an idea about how much extra you will have to shell out as per the new premiums rates. In percentage terms, Private cars as a segment will have 25% plus hike across all segments, with entry level cars (under 1000 CC) getting a premium hike of 30%.

      In commercial vehicle segment, the pubic carriers will be the most hit with monetary hikes in the range of INR 3200 – 6000 across all weight categories. The rise in percentage terms are in the similar range 25-30% as private vehicles.

      Two wheelers will also see a steep rise of 10-25 % across various segments, with the only exception of ‘above 350 CC’ category showing a decline of 10%. Similarly, the only other category witnessing a fall of 10% is private commercial vehicle ‘under 7500 KG’.

      Cap on the time-period to file claims

      Post discussion with respective stakeholders, the regulatory body is also looking to set cap on liability and fix time period for filing a claim. Post the completion of the filing period, the parties will not be able to file claim. Currently, there is no cap on claim amount and no time period fixed for filing the claim.

      These proposed changes will surely help the insurance companies in improving the performance of motor insurance segment. However, the policy holders needs to be better aware about the various plans and variants offered by the companies post the new proposal implementation to minimise the impact of premium hikes.

      Find similar car insurance quotes by body type

      Hatchback Sedan SUV MUV
      Save upto 85% on Car Insurance
      Search
      Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
       Why buy from policybazaar
      Claim Assurance Program

      Car insurance Articles

      • Recent Article
      • Popular Articles
      20 Jun 2024

      Top 5 Car Care Tips to Beat The Summer Heat

      The extreme heat and constant heat wave warnings have made

      Read more
      11 Jun 2024

      How to Check Car Owner Details By Registration...

      Scenarios like hit-and-run accidents or purchasing a second-hand

      Read more
      21 May 2024

      Get Faster Claim Settlement with Policybazaar...

      Getting your car insurance claim settled is no longer a hassle

      Read more
      17 Apr 2024

      Understand the Nitty-Gritty of Car Insurance...

      Have you recently purchased a car insurance policy for your new

      Read more
      22 Feb 2024

      IDV in Car Insurance

      In layman's terms, the IDV full form is the Insured Declared Value

      Read more

      How to Check Car/Vehicle Insurance Status Online

      It doesn’t matter if you are an excellent driver or take your car out only once in a few months; your vehicle must

      Read more

      Getting Your Duplicate Car Insurance Policy is...

      Losing your car insurance documents can be daunting. In such a state of affairs, the first thing that comes to your

      Read more

      How To Find Car Insurance Details By Registration...

      Sometimes, you may face situations when you need car insurance or vehicle owner details but cannot readily access

      Read more

      How to Check Car Owner Details By Registration...

      Scenarios like hit-and-run accidents or purchasing a second-hand car require you to find car owner details by number

      Read more

      How to Transfer Car Insurance Policy?

      An integral part of selling a car for both the buyer and the seller is ensuring a successful car insurance transfer

      Read more

      #Rs 2094/- per annum is the price for third-party motor insurance for private cars (non-commercial) of not more than 1000cc

      *Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB. Actual time for transaction may vary subject to additional data requirements and operational processes.

      ##Claim Assurance Program: Pick-up and drop facility available in 1400+ select network garages. On-ground workshop team available in select workshops. Repair warranty on parts at the sole discretion of insurance companies. Dedicated Claims Manager. 24x7 Claim Assistance.