Third-party motor insurance for FY 2023-24: Check premiums for cars, bikes and two-wheelers

The Centre on Tuesday announced base premium rates for third-party motor insurance for different categories of vehicles, including passenger cars, commercial vehicles, and two-wheelers, for 2023-24 fiscal year.

The Ministry of Road Transport and Highways revealed the proposed rates via a notification on the E-Gazette website on June 14.

The ministry has prepared the draft Motor Third Party Premium and Liability Rules for FY2023-24 after consultation with the Insurance Regulatory and Development Authority of India (IRDAI). The government has not changed premium rates for third-party motor insurance for current fiscal year.

Premiums for third-party insurance for bikes and cars

According to the ministry’s draft notification, the base premium rates for third-party insurance have been kept at Rs 2,094 for private cars with an engine below 1,000 cc, Rs 3,416 for cars between 1000-1500 cc, and Rs 7,897 for cars with an engine more than 1500 cc.

The base premium rates for two-wheelers not exceeding 75 cc have been proposed at Rs 538. At the same time, for two-wheelers up to 350 cc and above the base premium rates vary in the range of Rs 714 and Rs 2,804.

Third-party insurance premiums for commercial vehicles

Meanwhile, the proposed rates for Goods Carrying Commercial Vehicles (other than 3-wheelers) not exceeding 7500 kg is Rs 16,049, while the rates for commercial vehicles carrying upto 40,000 kgs and above lie in the range of Rs 27,186-Rs 44,242.

The proposed rate for goods carrying motorized three-wheelers and motorized pedal cycles except e-carts is Rs 4,492.

The base premium rates for private electric cars not exceeding 30 KW have been proposed at Rs 1,780. For electric cars in the range of 30 KW-65KW, proposed rates are Rs 2,904. Owners of electric cars exceeding 65 KW will have to pay Rs 6,712.  

Proposed rates for electric-two wheelers not exceeding 3 KW is Rs 457, 3 KW-7 KW is Rs 607, 7 KW-16 KW is Rs 1161, and for 16 KW and above is Rs 2,383.

The ministry has proposed a discount of 15 per cent for educational institution buses, 50 per cent for a private car registered as vintage car, and 15 per cent discount for electric vehicles.

It is worth noting that the government has made it mandatory for motor vehicles to get a third-party insurance policy.