Govt notifies new vehicle insurance rates, will be applicable from June 1

A discount of about 15% and 7.5% on the premium has been allowed for electric and hybrid electric vehicles, respectively

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.

Base premium rates for electric vehicles have also been hiked. For new private cars not exceeding 30 kilowatts (kw), annual premium has been fixed at Rs 1,780, while that for 30-65 kw e-cars is Rs 2904. New private cars over 65 kw will attract a premium of Rs 6712.

E-scooters and other electric two-wheeler rates have also been revised. The annual premium on new electric two-wheelers under 3 kw will be Rs 457, between 3 kw and 7 kw at Rs 607. Base rate for 7-16 kw two-wheelers has been set at Rs 1,161 and high-powered two-wheelers above 16 kw will see an annual premium of Rs 2383.

A discount of about 15 per cent and 7.5 per cent on the premium has been allowed for Electric and Hybrid Electric Vehicles, respectively, the ministry said. Educational institution buses will also be eligible for a 15 per cent discount.