Your motor third party insurance premium will go up significantly from April 1, as per the proposals of the Insurance Regulatory and Development Authority of India (IRDAI).
In an exposure draft on the proposed hike, the regulator indicated that the increase would be in the range of about 15 per cent to over 100 per cent for different category of vehicles on account of a high increase in average death claim size for 2013-14 over the previous year.
The death claim size for the claims arising out of the policies issued in the years 2014-15 and 2015-16 which would get settled over the next 8-10 years period was also expected to be much higher, it said.
The highest increase of about 107 per cent is indicated for small cars (below 1000 cc). For cars exceeding 1000cc but below 1500cc, a premium hike of 44 per cent has been mooted while 29 per cent hike is suggested for those exceeding 1500 cc.
For two-wheelers not exceeding 75cc, the third party premium hike has been put at 14 per cent while the same is at 32 per cent for 151cc to 350cc category.
For the goods carrying vehicles public carriers, a hike of 14-81 per cent has been proposed for those several categories exceeding 12,000 kilograms and above. But for those vehicles up to 12,000 kilograms, they have proposed a 14-20 per cent drop in premiums.
However, the actual hike to be notified will depend on the feedback from all stakeholders including mainly the insurers.