The central government has recently notified the base premium for third party insurance for unlimited liability for various classes of vehicles, including private cars, two wheelers and goods carriages — driven both by fuel and electricity. This may result in the price hike of electric vehicles and petrol and diesel-driven cars, as the insurance rates have been hiked. It has been mentioned that the new charges will be effective from June 1, 2022.
A discount of 7.5 per cent on the premium shall be allowed for hybrid electric vehicles. However, EV third party insurance rates have also been hiked. The ministry of road transport and highways has revised base premium rates for third-party insurance of vehicles for the first time since the onset of Covid-19.
The new rates, which are applicable from 1 June, will see discounted prices for third party insurance in electric vehicles, hybrid vehicles, and educational institute buses, as per a statement by the ministry.
For new private cars upto 1000 cc, the yearly base premium rate has gone up by Rs 22 from 2019-20 to Rs 2,094, while that for cars between 1000 and 1500 cc is Rs 3,416 (up by Rs 195), while third party insurance for cars exceeding 1500 cc will cost Rs 7,897 (up by Rs 7).
For new two-wheelers under 75 cc, annual premium has been hiked to Rs 538, while 75-150 cc premium has been hiked to Rs 714, 150-350 cc premium has gone up to Rs 1366, and that for heavy 350+ cc bikes has gone up to Rs 2804.
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