Owning a two-wheeler will soon get more expensive. Starting today, the third-party insurance premiums for motorcycles and scooters will cost more. This is a result of the government increasing the base premium rates for third-party insurance.
The increase in third-party premiums is bound to affect the sales of two-wheelers in India. The industry has been growing slowly in recent times, unlike what was expected. Furthermore, the increase in third-party insurance premiums will definitely take a toll on the sales. The reason will be an increase in the cost of acquiring a scooter or motorcycle. This may see buyers postpone or even cancel their decision to purchase a two-wheeler.
A third-party insurance cover is for damages other than own. A third-party insurance cover is mandatory at the time of purchase, along with an own damage cover. Before this, the Insurance Regulatory and Development Authority of India (IRDAI) notified the third-party rates. However, this is the first time the MoRTH has issued a notification for the third-party insurance premium rate hike.
Increased Third-Party Insurance Premiums – Details
After the increase, the third-party premium for two-wheelers with an engine capacity under 75cc will be INR 538. For two-wheelers with an engine capacity between 75cc and 150cc, it will be INR 714. As for the motorcycles and scooters with engine capacity between 150cc and 350cc, it will now be INR 1,366. Meanwhile, motorcycles and scooters with an engine displacement greater than 350cc will carry a premium of INR 2,804.
In addition to this, the five-year premium plans will also get major changes. The two-wheelers up to 75cc will carry a premium of INR 2,901. At the same time, the premium for two-wheelers between 75cc to 150cc will be INR 3,851. As for the 150cc to 350cc segment, it will be INR 7,365. The most expensive will be the premium for motorcycles and scooters above 350cc. After the increase, they will carry a premium of INR 15,117.
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