Motor Insurance to cost more in 2013

Last year same time, the third party premium of motor vehicles was increased and this time too, from April 1st all vehicle owners would have to pay extra for their third party cover. Since third party cover is a must for all vehicles to ply on Indian roads, there is no escaping this additional load. The idea behind third party insurance is to settle the claims of victims other than car owners.

 

Last year Insurance Regulatory and Development Authority had said that they would be reviewing third party premiums every year.  From this April 1st onwards, the hike is around 85% for private cars below 1000 cc, and 44% for vehicles above 1500cc. There is third party increase for two wheelers too. For 2 wheelers below 75 cc, there is a hike of 35% and for bikes above 350 cc, there is a hike of 108% from the premium paid in last year. 

 

Last year if you paid Rs 784/ as your third party premium, this year you will end up paying RS 1453/. Those of you who paid Rs 925 last year has a breather- you pay only Rs 938/(for vehicles above 1000cc but below 1500 cc).Those of you who own vehicles above 1500cc you will end up paying Rs 4096/ in place of Rs 2853/ that you paid last year.

 

Two wheeler owners who paid Rs 350 last year will end up paying Rs 472/ for below 75 cc bikes. For bikes between 75 cc and 150 cc, you will end up paying Rs 409/ instead of Rs 357/. Biker owners with above 350 cc vehicles will have to shell out Rs 1415/ instead of the Rs 680/ they paid last year.

 

Goods carrying vehicles have not been affected much with certain categories of vehicles seeing a decline in their third party premiums.

 

Hikes in fuel prices and these mandatory thirty party premium hikes will surely see an increase in the current cost of living of common man. Let’s start walking! Walking will keep you healthy and your pockets full.