IRDAI proposes third-party motor insurance premiums for FY24. Check the details here

The Ministry of Road Transport and Highways (MoRTH) has issued a proposal on Motor Third Party Premium and Liability Rules for the financial year 2023-24 (FY24), in consultation with the Insurance Regulatory and Development Authority of India (IRDAI).

This piece will help you understand the third-party insurance premium rates for cars, two-wheelers and transport vehicles for FY24.

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As per the notification, a discount of 15% is proposed for buses belonging to educational institutions and for electric vehicles (EVs). A discount of 7.5% has been offered for hybrid EVs. Further, a reduction of about 6.5% in the base premium rate has been proposed for three-wheeled passenger-carrying vehicles. The IRDAI has kept tariffs unchanged compared to the last year FY23.

You must note that a bus belonging to an educational institution means an omnibus owned by a college, school or other educational institution and used solely to transport its students or staff in connection with any of its activities.

Private car third-party premium rates

The IRDAI has proposed the Motor Third Party (TP) premium rates for cars with engines below 1,000 cc to Rs 2,094 for FY24. Similarly, for cars between 1,000 cc and 1,500 cc the TP premium is proposed at Rs 3,416. However, for luxury cars (with engine capacity of over 1,500 cc) the TP premium has been proposed to Rs 7,897.

Two-wheeler premium rates 

The IRDAI has proposed the TP premium rates for two-wheelers with engines below 75 cc at Rs 538 for FY24.

Similarly, for two-wheelers between 75 cc and 150 cc, the proposed premium is Rs 714. For two-wheelers between 150 cc and 350 cc the proposed premium is Rs 1,366. For two-wheelers with engines above 350 cc, the proposed premium has been increased to Rs 2,804 for FY24.

The base premium rates for Motor Third Party Insurance Cover for unlimited liability for the private cars and two-wheelers are tabulated below for the Financial Year 2023-24.