Cars in India | Autoportal.com

Vehicle Insurance purchase and renewal to cost more in India from 1st April

Vehicle Insurance purchase and renewal to cost more in India from 1st April

Snapshot: So this year’s budget already increased the price of purchasing new vehicles and now also the increment in insurance price will further shoot up the cost of ownership of two-wheelers.

- Comments    |    Write Comment

Not a very good news for people who will be purchasing or renewing their two-wheeler or car insurance shortly. The Insurance Regulator and Development Authority of India (IRDA) has decided to increase the insurance rates up to 40 per cent from the first day of April.The decision of the hiking up the prices related vehicle insurances came up to due to the increase in cost inflation index (CII) by 5.57 per cent when taking the last year’s finance into account.

The new third party premium rates for two-wheelers with engine capacity up to 75cc is now up to Rs 569 which was Rs 519 before. On the other hand when talking about two-wheelers from 75-150cc engine capacity will witness a premium increase of 15 per cent to Rs 619. And models falling into the gap of 150cc to 350cc will see an increment of 25 per cent. On the contrary there has been a reduction in premium for motorcycles falling into the category higher than 350cc.

So this year’s budget already increased the price of purchasing new vehicles and now also the increment in insurance price will further shoot up the cost of ownership of two-wheelers in our country. Like every year, the revision of premium rates is done by IRDAI by a comprehensive study done on the market numbers related to extent of claims made and loss ratios for the insurers. 

Related car news

  • Official: Range Rover Velar Goes on Sale at Rs. 78.83 Lakhs 20-01-2018 Mayank Gupta Official: Range Rover Velar Goes on Sale at Rs. 78.83 Lakhs
  • Tata Motors Introduce 'IMPACT DESIGN 2.0' Design Language 20-01-2018 Mayank Gupta Tata Motors Introduce 'IMPACT DESIGN 2.0' Design Language
  • Mercedes Benz Rolls Out BS VI Vehicle in India 20-01-2018 Mayank Gupta Mercedes Benz Rolls Out BS VI Vehicle in India
  • 2018 Bajaj Avenger Cruise and Avenger Street launched at Rs 93,466 19-01-2018 Autoportal Team 2018 Bajaj Avenger Cruise and Avenger Street launched at Rs...
  • Toyota Yaris Ativ spotted testing in India 19-01-2018 Davender Soni Toyota Yaris Ativ spotted testing in India
  • Honda Cars India recall 22,834 vehicles over faulty airbag 19-01-2018 Mayank Gupta Honda Cars India recall 22,834 vehicles over faulty airbag
Helpline