OneInsure Blog
Motor Insurance Costs for New Vehicle Purchases to Increase – What This Means for You
IRDAI has decreed
Additionally, new vehicle owners should note that this applies only to TP motor insurance and not OD (own-damage) insurance. This point is also relevant for those who may have queries regarding how NCB will be treated due to this change. Since NCB is only applicable on the OD part and not on the TP part of the policy, it will remain unaffected.
Likewise, there is no impact on IDV (insured’s declared value) either.
So, what exactly has changed? Let’s have a look at a table to illustrate:
Sr. No. |
Category |
Vehicle Class |
Premium before Sept 1, 2018 |
Premium w.e.f Sept 1, 2018, for 3 and 5 years |
% Increase |
1 |
Private Car |
Not exceeding 1000 cc |
1,850 |
5,286 |
285.73% |
Between 1000 cc and 1499 cc |
2,863 |
9,534 |
333.01% |
||
1500 cc or more |
7,890 |
24,305 |
308.05% |
||
|
|
|
|
|
|
2 |
Two-wheeler |
Not exceeding 75 cc |
427 |
1,045 |
244.73% |
Between 75 cc and 149 |
720 |
3,285 |
456.25% |
||
Between 150 cc and 349 |
985 |
5,453 |
553.60% |
||
350 cc or more |
2,323 |
13,034 |
561.08% |
The amounts in the 5th column are payable upfront on the purchase of a new motor vehicle. As can be seen from column 6, the tariffs have risen for certain categories, for example, private cars between 1000 cc and 1499 cc and also two-wheelers with engines above 350 cc.
These added costs will reflect in the buying costs of private vehicles throughout the country.