Decoding hike in motor insurance premium3 min read 01 Jun 2019, 08:45 AM IST
The regulator proposed an increase to counter the effects of cost increases for insurers
Your overall motor insurance premium includes own damage premium and third party premium
Mumbai: The Insurance Regulatory Development Authority of India (IRDAI) has proposed to hike insurance premiums of two-wheelers and private cars purchased before 1 September. However, insurance premiums of new private cars and two wheelers sold after that stay put for the on-going financial year. This essentially means that the hike is in the renewal premiums and not the long-term premiums. For cars below 1,000 cc, the premium will go up to ₹2,120 from ₹1,850 for the financial year 2019-20 and for cars between 1,000 cc and 1,500 cc, premium has been proposed to be increased to ₹3,300 from ₹2,863. Premiums for those exceeding 1,500 cc remains at ₹7,890.
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