Lok Sabha Question No. 1350 (UNSTARRED), answered on 2019-07-01
Subject: Vehicle Insurance
Ministry: FINANCE
Asked by: Bhagwanth Khuba

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 1350

TO BE ANSWERED ON MONDAY, JULY 01, 2019/ASHADHA 10, 1941 (SAKA)

## VEHICLE INSURANCE

## 1350. SHRI BHAGWANTH KHUBA:

Will the Minister of FINANCE be pleased to state:-

- (a) whether the Government has increased the third party premium for cars and bikes in the country;
- (b) if so, the details thereof;
- (c) whether the Government has fixed any criteria for old vehicles or CC of the vehicles for the said premium hike; and
- (d) if so, the details thereof?

## ANSWER

## THE FINANCE MINISTER

## (SMT. NIRMALA SITHARAMAN)

(a) to (d): The Insurance Regulatory and Development Authority of India (IRDAI) vide order ref'  IRDAINL/NL/NTFN/MOTP/91/06/2018 dated 04.06.2019 has changed the Motor Third Party premium rates for private cars and two-wheelers as compared to previous financial year (FY). The details of change in Motor third party premium rates are as under:

| Vehicle Category                            | Motor TP Premium Rates (Rs.)   | Motor TP Premium Rates (Rs.)   |
|---------------------------------------------|--------------------------------|--------------------------------|
|                                             | 2018-2019                      | 2019-2020                      |
| Private Cars                                |                                |                                |
| Not exceeding 1000 cc                       | 1,850                          | 2,072                          |
| Exceeding 1000 cc but not exceeding 1500 cc | 2,863                          | 3,221                          |
| Exceeding 1500 cc                           | 7,890                          | 7,890                          |
| Two Wheelers                                |                                |                                |
| Not exceeding 75 cc                         | 427                            | 482                            |
| Exceeding 75 cc but not exceeding 150 cc    | 720                            | 752                            |
| Exceeding 150 cc but not exceeding 350 cc   | 985                            | 1,193                          |
| Exceeding 350 cc                            | 2,323                          | 2,323                          |

As per the order of the Hon'ble Supreme Court of India, dated 20th July,2018, IRDAI directed all  General  insurers  (barring  the  stand-alone  health  insurers  and  the  specialized  insurers)  to issue  mandatory  Long-Term  Motor  Third  Party  insurance  covers  for  new  cars  and  new  two wheelers  (3-year  for  new  cars  and  5-year  for  new  two-wheelers)  with  effect  from  1st September,  2018  along  with  the  premium  rates  to  be  charged  for  these  policies  for  the  FY 2018-19 vide its circular ref 'IRDAI/NL/CIR/MOT/137/08/2018' dated 28th August 2018.

In  respect  of  new  cars  and  new  two-wheelers,  there  is  no  change  in  the  aforesaid  long-term Motor TP premium rates in the FY 2019-20 as compared to FY 2018-19.

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