For the first time, the ministry of road transport (MoRT) and Highways issued a notification on new premium rates for motor third-party insurance coverage for vehicles for the financial year 2023-24, without any hike in premium amount.
Earlier, the Insurance Regulatory and Development Authority of India (IRDAI), an autonomous body, used to monitor and publish ‘draft exposure’ on premium amount for the third-party insurance for motor vehicles every year seeking ‘objections and suggestions’ from vehicle owners across the country on the draft proposal.
Owing to Covid-19 pandemic, IRDAI could not make the ‘draft exposure’ during 2021-22 and 2022-23 financial years respectively. This year, MoRT in its notification issued on 14 June, stated that the draft rules for the new rates of insurance premium shall be taken into consideration after the expiry of a period of 30 days from the date on which the copies of the notification as published in the Gazette of India. According to the draft, annual insurance premium for a private car, not exceeding 1000cc is Rs 2,094, while the amount is Rs 3,416 for a vehicle with minimum 1000cc and maximum 1,500 cc.
For a private two wheeler, within the limit of 75cc, the owner will have to pay the premium Rs 538 per year. The amount for a private two-wheeler with minimum 75cc and above, but not exceeding 150cc is Rs 714.
There has been a slash in the premium amount for environment-friendly electric vehicles, according to the draft. Private road transport operators in the city felt that the MoRT finally has taken over the responsibilities of fixing premium amount for third-party insurance coverage from the IRDAI and decided to monitor the issues across states and union territories (UT) following their long-standing chartered of demands to the ministry. “It’s good to know that the road transport ministry from now will look after the third party insurance premium issue. The IRDAI used to handle it without considering various problems we are facing as private transport operators.
We hope, the MoRT will fix premium amounts in coming years considering our problems. For instance, premium for vehicles in the eastern zone should be taken into consideration by the ministry because of number of claims in this zone is low as compared with other zones in the country,” said Mr Rahul Chatterjee, secretary of All Bengal Bus Minibus Samannay Samity (ABBMSS).
“It was our long-standing demand requesting the ministry to monitor the insurance issue and we had also met the Union road transport minister Nitin Gadkari in Delhi and senior officials several times one year ago,” he added.