IRDA Hikes Third-Party Motor Insurance Premium
- Home
- Motor Insurance
- Car Insurance
- News - CI
- IRDA hikes Third-Party Motor Insurance Premium
The third-party premium (TP) has hiked from Rs 941 to Rs 1,129 for passenger cars below 1,000 cc. The draft proposal of the same was for a premium of Rs 2,227. The TP premium for passenger cars between 1,000-1,500 cc has been hiked to Rs 1,332 from Rs 1,110. Its draft proposal was of Rs 1,677. Passenger cars above 1,500 cc have a hike to Rs 4,109 from Rs 3,424 in their premium. The proposal for this category was Rs 4,295.
You may also like to Read: Third party Insurance |
The TP premium for two-wheelers of 350 cc and above has been hiked to Rs 884 from Rs 804 by IRDA. The proposal was of a reduction to Rs 306 in the draft. The premium for bikes between 150-350 cc has been hikes to Rs 462 from Rs 420 and for 75-150 cc, it has raised to Rs 464 from Rs 422.
While having TP motor insurance is compulsory for all the vehicles that are plying on Indian roads, it's a loss-making business for the general insurers. Motor TP pricing covers liability that is arising from third-party claims because of accidents.
Irda had been asked by general insurers for the consideration of an increase of 50-60% in TP premium in view of the high provisioning which is currently at 210 % for the declined risk pool.
Find similar car insurance quotes by body type
RTO Offices by State
Car Insurance
Plans start at
₹2,094*
Compare & Save
Up to 85%*
on Car Insurance

Car insurance articles

29 Nov 2023
Considering the population of rats in our country, it is common to
29 Sep 2023
The concept of Own Damage(OD) is not a new one. For those of us
29 Sep 2023
Filing a motor insurance claim can be a complex process, and
29 Sep 2023
To continue receiving coverage benefits, it's necessary to renew
20 Sep 2023
Having third-party car insurance is mandatory as per the motor



