Third-party insurance becomes cheaper for auto rickshaws, e-rickshaws

The government on Friday capped the third-party motor vehicle insurance premium in certain segments, with effect from the same day. 

For auto rickshaws, or motored three-wheelers, the basic premium applicable was set at Rs 2,371, and for each passenger at Rs 1,134, according to an official notification, dated January 5. For e-rickshaws, or electric three-wheelers, the basic premium was fixed at Rs 1,539, and for each passenger at Rs 737, said the notification by the Ministry of Road Transport and Highways (MoRTH). 

The two categories are defined by the authorities as follows: 

• Three-wheelers: Three-wheeler vehicles used for carrying passengers for hire or reward with a carrying capacity not exceeding six passengers (except e-rickshaws)
• E-rickshaws: Three-wheeled vehicles used for carrying passengers with a carrying capacity not exceeding six passengers

In 2022, the ministry had, in consultation with insurance regulator IRDAI, prescribed the base premium and the premium per licensed passenger for auto rickshaws at Rs 2,539 and Rs 1,214, and for e-rickshaws at Rs 1,648 and Rs 789, respectively. 

It is mandatory under motor vehicle laws for every registered vehicle to have at least an active third-party insurance cover.