THIRD PARTY (LIABILITY) PREMIUM CHANGE EXPECTED
It is likely the that Thir Party Premium (Liability Premium) shall change w.e.f. 1st of April 2020.
IRDAI has issued Exposure Draft on proposed changes for opinion of its stake holders on 5th of March.
Based on claims data available with Insurance Information Bureau (IIB) and its analysis on ultimate loss ratio and burning cost the changes in premiums are proposed.
The most remarkable feature of this exposure draft is to incentivise the electrical vehicles for promoting echo-friendlyness for a cleaner future of the country and the planet.
Change of Premium Over Previous Year :
The proposed changes in Third Party (Liability) premiums shall be as under :-
Table I
Category
|
Vehicle Type
|
Existing Rates
|
Proposed Rates
|
(Rs)
|
(Rs)
|
FY 2019-20
|
FY 2020-21
|
|
Private Cars
|
|
Not exceeding 1000 cc
|
2,072
|
2,182
|
Exceeding 1000 cc but not exceeding 1500 cc
|
3,221
|
3,383
|
Exceeding 1500 cc
|
7,890
|
7,890
|
|
Two Wheelers
|
|
Not exceeding 75 cc
|
482
|
506
|
Exceeding 75 cc but not exceeding 150 cc
|
752
|
769
|
Exceeding 150 cc but not exceeding 350 cc
|
1,193
|
1,301
|
Exceeding 350 cc
|
2,323
|
2,571
|
A1
|
Goods Carrying Commercial Vehicles (other than 3 wheelers) - Public
|
|
GVW not exceeding 7500 kgs
|
15,746
|
16,092
|
Exceeding 7500 kgs but not exceeding 12000 kgs
|
26,935
|
28,288
|
Exceeding 12000 kgs but not exceeding 20000 kgs
|
33,418
|
35,139
|
Exceeding 20000 kgs but not exceeding 40000 kgs
|
43,037
|
44,342
|
Exceeding 40000 kgs
|
41,561
|
44,457
|
A2
|
Goods Carrying Commercial Vehicles (other than 3 wheelers) - Private
|
|
GVW not exceeding 7500 kgs
|
8,438
|
8,607
|
Exceeding 7500 kgs but not exceeding 12000 kgs
|
17,204
|
17,549
|
Exceeding 12000 kgs but not exceeding 20000 kgs
|
10,876
|
11,094
|
Exceeding 20000 kgs but not exceeding 40000 kgs
|
17,476
|
17,827
|
Exceeding 40000 kgs
|
24,825
|
25,323
|
A3
|
Goods Carrying Motorized Three Wheelers and Motorized Pedal Cycles – Public Carriers
|
|
except e-carts
|
4,092
|
4,489
|
A4
|
Goods Carrying Motorized Three Wheelers and Motorized Pedal Cycles – Private Carriers
|
|
except e-carts
|
3,914
|
3,922
|
B
|
Trailers
|
|
Agricultural Tractors upto 6 HP
|
857
|
918
|
Other vehicles including Miscellaneous & Special Type of Vehicles (Class-C),(For each trailer, for more please multiply by no. of trailers)
|
2,341
|
2,507
|
Table II
Category
|
Vehicle Type
|
Existing Rates (Rs.)
|
Proposed Rates (Rs.)
| |
FY 2019-20
|
FY 2020-21
| |
Basic Rate
|
Per Licensed Passenger
|
Basic Rate
|
Per Licensed Passenger
| |
C1a
|
Four wheeled vehicles used for carrying passengers for hire or reward with carrying capacity not exceeding 6 passengers
| |
|
Not exceeding 1000 cc
|
5,769
|
1,110
|
6,370
|
1,226
| |
Exceeding 1000 cc but not exceeding 1500 cc
|
7,584
|
934
|
8,375
|
1,031
| |
Exceeding 1500 cc
|
10,051
|
1,067
|
11,099
|
1,178
| |
C1b
|
Three wheeled vehicles used for carrying passengers for hire or reward with carrying capacity not exceeding 6 passengers
| |
|
except e-rickshaw
|
2,595
|
1,241
|
2,595
|
1,241
| |
C2
|
Four or more wheeled vehicles used for carrying passengers with carrying capacity exceeding 6 passengers for hire or reward
| |
|
School Bus*
|
13,874
|
848
|
14,338
|
876
| |
Other Bus
|
14,494
|
886
|
14,978
|
916
| |
C3
|
Motorized three wheeled passenger vehicles used for carrying passengers for hire or reward with carrying capacity exceeding 6 passengers but not exceeding 17 passengers
|
6,913
|
1,379
|
6,913
|
1,379
| |
|
|
|
C2
|
Three wheeled passenger vehicles used for carrying passengers for hire or reward with carrying capacity exceeding 17 passengers
|
15,845
|
969
|
15,845
|
969
| |
|
C4
|
Motorized Two wheelers used for carrying passengers for hire or reward
| |
|
Not exceeding 75 cc
|
861
|
580
|
861
|
580
| |
Exceeding 75 cc but not exceeding 150 cc
|
861
|
580
|
861
|
580
| |
Exceeding 150 cc but not exceeding 350 cc
|
861
|
580
|
861
|
580
| |
Exceeding 350 cc
|
2,254
|
580
|
2,254
|
580
| |
*School Buses are those buses which are registered in the name of the School and are used only for transporting students to or from a school or on school related trips.
Table III
Category
|
Vehicle Type
|
Existing Rates
(Rs.)
FY 2019-20
|
Proposed Rates
(Rs.)
FY 2020-21
|
D
|
Special Types of Vehicles
|
|
i) Pedestrian controlled Agricultural Tractors with Horse Power rating not exceeding 6HP, Hearses and Plane Loaders
|
1,550
|
1,660
|
ii) Other Misc & Spl types of vehicles
|
6,847
|
7,332
|
E
|
Motor Trade (Road Transit Risks)
|
|
i) Distance not exceeding 2400 kms
|
1,055
|
1,141
|
ii) Distance exceeding 2400 kms
|
1,268
|
1,371
|
F
|
Motor Trade (Road Risks) (Excluding Motorized Two Wheelers) – (Named Driver or Trade Certificate)
|
|
1st named driver or certificate
|
1,345
|
1,455
|
For additional drivers/ certificates up to 5 (per driver/certificate)
|
651
|
704
|
For additional Drivers/ Certificates exceeding 5 but not exceeding 10 (per driver/ certificate)
|
419
|
453
|
For additional Drivers/ Certificates exceeding 10 but not exceeding 15 (per driver/ certificate)
|
363
|
393
|
F
|
Motor Trade (Road Risks) (Motorized Two Wheelers) – (Named Driver or Trade Certificate)
|
|
1st named driver or certificate
|
515
|
515
|
For each additional Driver/ Certificate
|
257
|
257
|
Table IV
Category of Vehicle
|
Existing Rates (Rs.)
|
Proposed Rates (Rs.)
|
FY 2019-20
|
FY 2020-21
|
New Private Car – Three year single premium
|
Not exceeding 1000 cc
|
5,286
|
6,079
|
Exceeding 1000 cc but not exceeding 1500 cc
|
9,534
|
10,149
|
Exceeding 1500 cc
|
24,305
|
24,305
|
New Two Wheeler – Five year single premium
|
Not exceeding 75 cc
|
1,045
|
1,223
|
Exceeding 75 cc but not exceeding 150 cc
|
3,285
|
3,845
|
Exceeding 150 cc but not exceeding 350 cc
|
5,453
|
6,505
|
Exceeding 350 cc
|
13,034
|
13,034
|
Table V
Rates for Electric vehicles – Non passenger carrying
Category
|
Vehicle Type
|
Existing Rates
|
Proposed Rates
|
(Rs)
|
(Rs)
|
FY 2019-20
|
FY 2020-21
|
|
Private Cars
|
|
Not exceeding 30 KW
|
1,761
|
1,855
|
Exceeding 30 KW but not exceeding 65 KW
|
2,738
|
2,876
|
Exceeding 65 KW
|
6,707
|
6,707
|
|
Two Wheelers
|
|
Not exceeding 3 KW
|
410
|
430
|
Exceeding 3 KW but not exceeding 7 KW
|
639
|
654
|
Exceeding 7 KW but not exceeding 16 KW
|
1,014
|
1,106
|
Exceeding 16 KW
|
1,975
|
2,185
|
A1
|
Goods Carrying Commercial Vehicles (other than 3 wheelers) - Public
|
|
GVW not exceeding 7500 kgs
|
-
|
13,678
|
Exceeding 7500 kgs but not exceeding 12000 kgs
|
-
|
24,045
|
Exceeding 12000 kgs but not exceeding 20000 kgs
|
-
|
29,868
|
Exceeding 20000 kgs but not exceeding 40000 kgs
|
-
|
37,691
|
Exceeding 40000 kgs
|
-
|
37,788
|
A2
|
Goods Carrying Commercial Vehicles (other than 3 wheelers) - Private
|
|
GVW not exceeding 7500 kgs
|
-
|
7,316
|
Exceeding 7500 kgs but not exceeding 12000 kgs
|
-
|
14,917
|
Exceeding 12000 kgs but not exceeding 20000 kgs
|
-
|
9,430
|
Exceeding 20000 kgs but not exceeding 40000 kgs
|
-
|
15,153
|
Exceeding 40000 kgs
|
-
|
21,525
|
A2
|
Goods Carrying Motorized Three Wheelers and Motorized Pedal Cycles – Public Carriers
|
|
e-carts
|
2,859
|
3,136
|
A3
|
Goods Carrying Motorized Three Wheelers and Motorized Pedal Cycles – Private Carriers
|
|
e-carts
|
3,204
|
3,211
|
Table VI
Long term rates for electric vehicles – Private Cars and Two wheelers:
Category of Vehicle
|
Existing Rates (Rs.)
|
Proposed Rates (Rs.)
|
FY 2019-20
|
FY 2020-21
|
New Private Car – Three year single premium
|
Not exceeding 30 KW
|
4,493
|
5,167
|
Exceeding 30 KW but not exceeding 65 KW
|
8,104
|
8,627
|
Exceeding 65 KW
|
20,659
|
20,659
|
New Two Wheeler – Five year single premium
|
Not exceeding 3 KW
|
888
|
1,040
|
Exceeding 3 KW but not exceeding 7 KW
|
2,792
|
3,268
|
Exceeding 7 KW but not exceeding 16 KW
|
4,635
|
5,529
|
Exceeding 16 KW
|
11,079
|
11,079
|
Table VII
Rates for Electric vehicles – Passenger carrying
Vehicle type
|
KW Segments
|
Proposed Basic TP premium (Rs.)
|
Proposed Premium per licensed passenger (Rs.)
|
C1a (Four wheeled vehicles used for carrying passengers for hire or reward with carrying capacity not exceeding 6 passengers)
|
Not exceeding 30 KW
|
5,414
|
1,042
|
Exceeding 30 KW but not exceeding 65 KW
|
7,119
|
876
|
Exceeding 65 KW
|
9,434
|
1,001
|
C1b (Three wheeled vehicles used for carrying passengers with carrying capacity not exceeding 6 passengers)
|
e-rickshaw
|
1,685
|
806
|
C2 (Four or more wheeled vehicles used for carrying passengers with carrying capacity exceeding 6 passengers for hire and reward)
|
School Buses
|
12,187
|
745
|
Other than School Buses
|
12,731
|
779
|
C3 (Motorised three wheeled passenger vehicles used for carrying passengers for hire or reward with carrying capacity exceeding 6 passengers but not exceeding 17 passengers)
|
-
|
5,841
|
1,165
|
C2 (Three wheeled vehicles used for carrying passengers for hire and reward with carrying capacity exceeding 17 passengers)
|
-
|
13,388
|
819
|
C4 (Motorised Two Wheelers used for carrying passengers for hire or reward)
|
Not exceeding 3 KW
|
732
|
493
|
Exceeding 3 KW but not exceeding 7 KW
|
732
|
493
|
Exceeding 7 KW but not exceeding 16 KW
|
732
|
493
|
Exceeding 16 KW
|
1,916
|
493
|
Table VIII - Quadricycle
Category
|
Vehicle Type
|
Existing Rates (Rs.)
|
Proposed Rates (Rs.)
|
FY 2019-20
|
FY 2020-21
|
Basic Rate
|
Per Licensed Passenger
|
Basic Rate
|
Per Licensed Passenger
|
Quadricycle
|
Private Car
|
2,072
|
N/A
|
2,182
|
N/A
|
Electric private Car(Not exceeding 30 KW)
|
-
|
-
|
1,855
|
N/A
|
Commercial Vehicles not exceeding 500 CC
|
2,595
|
1,241
|
2,595
|
1,241
|
Long term rates – Three years single premium:
Category
|
Vehicle Type
|
Existing Rates (Rs.)
|
Proposed Rates (Rs.)
|
FY 2019-20
|
FY 2020-21
|
Quadricycle
|
New Private Car
|
5,286
|
6,079
|
New Electric private Car (Not exceeding 30 KW)
|
4,493
|
5,167
|
