In a relief to vehicle owners, there will be no change in the premium for third party motor vehicle insurance across all categories for 2023-24.
There is more good news for three-wheeler and e-rickshaw owners as the Road Transport Ministry has proposed to reduce the insurance premium for these two categories.
As per the draft notification issued by the Ministry, the basic premium proposed for auto-rickshaws for 2023-24 is Rs 2,371 against the current rate of Rs 2,539, a reduction of 6.8 per cent. The premium for each passenger has been proposed at Rs 1,134 against current premium Rs 1,214, a reduction of nearly 6 per cent.
In the case of e-rickshaws, the basic premium proposed is Rs 1,539 compared to the current rate of Rs 1,648 and for each passenger, Rs 737 premium has been proposed against the current rate of Rs 789.
The basic rate of third party premium in the case of commercial passenger vehicles covers the liability for compensation of anyone outside the vehicle getting impacted in an accident. The premium for per licenced passenger covers the liability in case of an accident impacting the passengers.
According to industry, one of the main reasons behind the government not revising the premium for third party insurance for all categories except three-wheelers and e-rickshaws is that while there has been an exponential rise in the number of vehicles, the increase in number of accidents is comparatively less.
The rates proposed in the draft notification the third party premium for popular and economic cars remains at Rs 2,094 and for SUVs it is unchanged at Rs 7,897 as well.
While third party insurance is mandatory for every registered vehicle, their owners have the option to take comprehensive insurance policy which covers both the third party liability and own damage.