Third Party Motor Vehicles Insurance premium becomes cheaper

As the third-party Motor insurance is mandatory for all the vehicles owners, so it becomes a cheer to all the owners of car when IRDAI has proposed reduction on premium for most of the vehicle categories in 2018-19. Insurance Regulatory and Development Authority reworks on the rate of premium every year after taking it into account the number of claims has made and loss ratio for insurers. The IRDAI has planned Rs 1,850 as motor Third Party premium for all the private cars not more than 1,000cc for 2018-19, compared with Rs 2,055 for 2017-18. For two-wheelers insurance not more than 75cc, it is Rs 427 against Rs 569 in the earlier year. The Insurance Regulator had increased on Third Party motor insurance premium by 28% for cars in 1,000-1,500cc and those beyond 1,500cc categories during 2017-18 after planning a 40% hike in rates earlier. Same case goes with two-wheelers in the 150-350cc group, as well as those beyond 350cc. Motor Third Party premium would be cheap for goods carrying three-wheelers and pedal cycles.