He said that at present the Indian auto industry is recovering from the effects of the Corona pandemic. The prices of two-wheelers have increased unexpectedly due to shortage of semiconductor chips and increase in manufacturing cost. In such a situation, buying a two-wheeler may become more expensive for the customers due to the pressure of additional expenditure.
He said that the cost of running two wheelers has also increased due to rising fuel prices and customers are constantly battling with the increasing expenditure on two wheelers. In such a situation, potential customers may be disappointed by the increase in premium.
Let us tell you that the Central Government is going to make Third Party Vehicle Insurance Premium expensive from June 1, 2022. This increase is being done for the first time in last 3 years. As per the notification, with effect from June 1, 2022, the third party insurance premium on two wheelers of more than 150cc capacity will now be 15% higher.
On the other hand, new two-wheelers purchased from next month will have to pay 17 percent more third party insurance premium. The on-road price of the bike may increase by up to Rs 2,200-2500 due to increase in third party insurance premium.
However, people buying a hybrid electric vehicle next month may get some relief from the insurance premium. As per the new rates, a discount of 7.5 per cent is being offered on hybrid electric vehicle premium, while private electric cars with battery capacity of up to 30kW will attract a premium of Rs 1,780. At the same time, private electric cars with battery capacity of 30kW to 60kW will have to pay a premium of Rs 2,904.
The government has marginally increased third party insurance premium for commercial goods vehicles. Third party insurance cover is for other vehicles involved in the accident, it is a mandatory insurance cover. While buying a vehicle, the vehicle owner buys third party insurance cover to meet the damage claims of other vehicles. This insurance cover is for any damage caused to a third party, generally a person or his vehicle, due to a road accident.
Generally, the Insurance Regulatory and Development Authority of India (IRDAI) releases the notification related to Vehicle Insurance. But this is the first time that the Ministry of Transport itself has issued a notice to increase the premium of a third party vehicle insurance.