IRDAI cuts rates

Insurance regulator IRDAI cut rates on average between 10% and 20% for bikes, cars and taxis, effective April 1.

The steepest year-on-year increase in motor third-party insurance rates was for luxury motorcycles at 110%. The new rates will be effective from April 1, 2018.

The IRDAI cut rates by as much as 24% for small mopeds — small-capacity scooters and two-wheelers with engine capacity below 75cc — to Rs.427 this April from Rs.569 last year. For scooters and motorbikes with engine capacity between 75cc and 150cc, there was no change in premium at Rs.720.

For high-powered bikes (between 150cc and 350cc), there has been a nominal increase (1.5%) to Rs.985. For luxury bikes with engine capacity above 350cc, rates have been jacked by 110% to Rs.2,323 from Rs.1,114.

For small car owners (below 1,000cc), there has been a premium cut of 10% to Rs.1,850. For sedans (1,000-1,500cc) and SUVs (above 1,500cc), there has been a uniform rate cut of 8.5% to Rs.2,863 and Rs.7,890 respectively.

While taxi aggregators have reason to cheer, as private cabs now get a 17% cut, auto rickshaws will have to shell out more. Rates for auto rickshaws and e-rickshaws increased 6.5% to Rs.2,595 and Rs.1,685 respectively. Taxi owners of smaller commercial cars like hatchbacks will pay Rs.5,437 annually, those plying entry-level sedans might have to shell out Rs.7,147 a year. Luxury cars in the segment gets a break with the 17% cut.

For goods carrying public vehicles, insurance rates have increased from 6% to 13%. Public transporters will now have to pay anywhere between Rs.24,190 and Rs.39,367. For those small trucks plying vegetables, fruits and flowers within city streets, there is reason to cheer as premiums go down by 11% to Rs.7,144.

But transporting perishable goods, grains and other commodities inter-state might prove more expensive as insurance for trucks goes up 8.2% to Rs.15,620. Large trailers carrying cars, petroleum and LPG will see the benefit of a 9.4% cut with premium of Rs.1,318.

Small motorised three wheeler vegetable and fish carts also get a 25% cut with insurance now at Rs.4,544. For those plying eco-friendly models the premium is lower at Rs.3,175. Motor pedal cycles, three-wheelers and e-carts get a 33% cut to Rs.3,150 and Rs.2,579 respectively. While small tractors less than 6 HP (horsepower) get a 14% cut to Rs.714, other specialised trailers and vehicles used in agriculture have seen a 12.5%.

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