IRDA has announced hike in the insurance premium rates of vehicles for 2016-17. According to reports, the increase in the premium for hi-end cars would be around 25% and that for the regular cars would be around 40%. Not just this, the premium rate for two-wheelers has also increased by almost 25%.
This means that the cars above 1500cc would be charged an extra 25%, while the owners with cars below 1500cc would pay 40% extra.
Talking about the Premium on two-wheelers, it has increased by 9.6% for those having engine capacity below 75cc. On the other hand, for the vehicles ranging between 75cc – 150cc; it has gone up by 15%.
The premium rates have been reduced by almost 10% for the bikes that have engine capacity above 350cc.
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For public goods-carriers (that weigh less than 12,000kg), there would be no increase in the premium rate.
The premium rate is increased by 3.2% for auto rickshaws. This does not include the e-carts.
Hence, it is important for the vehicle owners to be aware of the new premium rates on the vehicles.