IRDA Hikes Third-Party Motor Insurance Premium

IRDA has hiked the premium for third-party motor insurance from April 1st, 2014. It's a loss making business for the general insurers while TP motor insurance is mandatory for all the vehicles. 28th March, 2014; Mumbai: Premium for third-party motor insurance has been hiked by IRDA (Insurance Regulatory and Development Authority) from 1st April, 2014. However, the quantum of increase from what it originally proposed in the recommendations of draft that is released in February, 2014 has been reduced.

Read more


Compare & Save upto 85%* on Car Insurance
Processing
Get Car Insurance starting
@ only 2094/year#
  • Renew Policy In2 Minutes

  • 20+ Insurers To Choose From

  • 51 Lakh+ vehicles insured

#TP price for less than 1000 CC cars. All savings are provided by insurers as per IRDAI approved insurance plan. Standard T&C apply.

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

Hatchback Sedan SUV MUV
Search
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
 Why buy from policybazaar

Car insurance articles

Recent Articles
Popular Articles
Does Comprehensive Car Insurance Cover Hit and Runs?

09 Jan 2023

Yes, your comprehensive car insurance policy may cover the damages
Read more
The New IRDAI Regulations for KYC in Car Insurance

03 Jan 2023

As per the IRDAI guidelines, all motor insurance sectors including
Read more
How Can We Use Roadside Assistance Cover in Car Insurance?

09 Dec 2022

Roadside Assistance is an add-on cover offered with your
Read more
Is Nut Bolt Covered Under Car Insurance?

06 Dec 2022

No, any damage to the nut bolt or any other consumable of your
Read more
What Happens When You Only Have Third-Party Insurance?

05 Dec 2022

Third-party car insurance is a mandatory cover as per the motor
Read more
Getting Your Duplicate Car Insurance Policy is Easy-Here’s How!
Losing your car insurance documents can be daunting. In such a state of affairs, the first thing that comes to your
Read more
Check Car Insurance Status Online on Parivahan Sewa/ RTO?
It doesn’t matter if you are an excellent driver or take your car out only once in a few months, your car must be
Read more
Multiple Ways To Check Your Car Insurance Status Online
With everything going digital, checking vehicle insurance status online has become easier than ever. It not only
Read more
How to Find Car Insurance Details by Registration Number?
As a car owner, it is mandatory to have a car insurance policy under the Motor Vehicles Act, 1988. Sometimes, you
Read more
Transferring Car Insurance from One Person to Another
An integral part of selling a car, for both the buyer and the seller, is ensuring a successful car insurance
Read more