The central government unveiled its proposal for new base premium rates for third-party motor insurance across various vehicle categories, such as two-wheelers, passenger cars, and commercial vehicles, for the fiscal year 2023-24. The Ministry of Road Transport and Highways (MoRTH) issued a draft notification outlining the suggested rates for Motor Third Party Insurance Cover. According to the proposal, the base premium rates for private cars below 1,000 cc would be set at Rs 2,094, while cars between 1,000-1,500 cc would have a rate of Rs 3,416, and cars exceeding 1,500 cc would be charged Rs 7,897. The Ministry collaborated with the Insurance Regulatory and Development Authority of India (IRDAI) to develop the draft Motor Third Party Premium and Liability Rules for FY 2023-24.
For two-wheelers not exceeding 75 cc, the proposed rate is Rs 538, whereas two-wheelers up to 350 cc would have rates ranging from Rs 714 to Rs 2,804. The proposed rates for Goods Carrying Commercial Vehicles (excluding three-wheelers) not exceeding 7,500 kg is Rs 16,049, while vehicles up to 40,000 kg and above would have rates varying from Rs 27,186 to Rs 44,242. Motorised three-wheelers and motorised pedal cycles, excluding e-carts, would be charged a proposed rate of Rs 4,492. For private e-cars not exceeding 30 KW, the proposed rate is Rs 1,780, and for e-cars ranging from 30 KW to 65 KW, the rates would be Rs 2,904, while e-cars exceeding 65 KW would be charged Rs 6,712. Proposed rates for e-two wheelers not exceeding 3 KW are Rs 457, for 3 KW-7 KW the rates are Rs 607, for 7 KW-16 KW the rates are Rs 1,161, and for 16 KW and above, the rates would be Rs 2,383.
Battery-based goods carrying commercial vehicles (excluding three-wheelers) not exceeding 7,500 kg would have a proposed rate of Rs 13,642. For vehicles ranging from 7,500 kg to 12,000 kg, the rates would be Rs 23,108, while for vehicles between 12,000 kg and 20,000 kg, the rates would be Rs 30,016. Vehicles ranging from 20,000 kg to 40,000 kg would be charged Rs 37,357, and those exceeding 40,000 kg would have a rate of Rs 37,606. Proposed discounts include 15% for educational institution buses, 50% for privately registered vintage cars, 15% for electric vehicles, and 7.5% for hybrid electric vehicles. The ministry also mentioned a reduction of approximately 6.5% in the base premium rate for three-wheeled passenger carrying vehicles. All stakeholders are invited to provide comments and suggestions on the proposal within a 30-day period.