Third-Party Two-wheeler Insurance Premium Price Hiked

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. 

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.