Third-Party Two-wheeler Insurance Premium Price Hiked

Modified On Jun 19, 2019 By Gaurav Sadanand

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The revised insurance rates will be applicable from 16th June 2019

  • Insurance Regulatory and Development Authority of India (IRDA) has officially announced the price hike.
  • Two-wheelers under 75cc receive a 12.9 per cent hike over the previous rates. 
  • 150-350cc segment witnesses a hefty 21.1 per cent increment. 

The Insurance Regulatory and Development Authority of India (IRDAI) has announced a price hike for all third-party two-wheeler insurance premiums in the country. This will directly affect the on-road prices of all new two-wheelers and insurance renewals this year. The revised pricing will be applicable from 16th June 2019. 

The new premium varies depending on the displacement of the engine. Two-wheelers under 75cc receive a price hike of Rs 55 (12.9 per cent) over the previous rate of Rs 427. On the other hand, the 75-150cc segment gets an increment of 4.4 per cent, which is a difference of Rs 32 over the previous price of Rs 720. The 150cc to 350cc class incurs the biggest price hike of 21.1 per cent, a surcharge of a little over Rs 200 compared to the previous cost of Rs 985. The price structure remains unchanged for vehicles above 350cc. 

Engine Displacement

Old Premium

New Premium

5-year Single Premium

Under 75 cc

? 427

INR 482

INR 1,045

75 cc - 150 cc

? 720

INR 752

INR 3,285

150 cc - 350 cc

? 985

INR 1,193

INR 5,453

Over 350 cc

? 2,323

INR 2,323

INR 13,034

Mr. Adarsh Aggarwal, Appointed Actuary, Digit Insurance, said the inflation in insurance costs is due to the rise in claims in each segment, especially in the 150 to 350cc segment. Essentially, insurance companies have to pay out more in terms of claims for the concerned parties. 

Aside from this IRDAI has also introduced insurance premiums for electric two-wheelers in the country. 

Power Output

One Year Policy Premium

Long Term Policy Premium

Under 3 kW

INR 410

INR 888

3 kW - 7 kW

INR 639

INR 2,792

7 kW - 16 kW

INR 1,014

INR 4,635

Over 16 kW

INR 1,975

INR 11,079

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