Insurance Regulatory and Development Authority (IRDA) has raised the premium rates for third-party motor insurance policies by 10% to 65% across different categories of vehicles and ownerships.
While third-party premiums for personal cars and two-wheelers were raised by 10%, new premiums for commercial vehicles would be higher by 65%. The new rates are effective from 01 April 2011.
Third party motor premiums in India are regulated by Tariff Advisory Committee, a constitutional body under IRDA. Third party motor premiums for commercial vehicles rose for the first time in four years.
IRDA also specified third party motor premiums would be revised annually, based on inflation and claim experience. Third-party premium rates for commercial vehicles were stagnant for the last four years, owing to opposition from transport unions.
The revised schedule of premium is available in the website of the Authority www.irda.gov.in