Ministry of Transport proposes 15% insurance discount on school buses

The ministry and insurance regulator of India have proposed insurance discounts of 7.5-50% on motor insurance premium for select vehicles for financial year 2023-24

The Ministry of Road Transport and Highways (MoRTH) has proposed discounts on motor insurance premiums for educational institution buses, private vintage cars, and electric & hybrid electric vehicles.

On Tuesday, MoRTH drafted a notice proposing motor third-party premiums and liability rules for the financial year 2023-24 after consulting the insurance regulatory and development authority of India (Irdai). The notice includes a proposal to provide all buses in the service of educational institutions 15 per cent discount on motor insurance premiums. It also proposes a15 per cent for electric vehicles (EV) and a  7.5 per cent for hybrid EVs.

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According to a report by Mint, the ministry stated that these discounts aimed to reflect the ministry's commitment to the preservation of historical and cultural values of the country. Furthermore, MoRTH aimed to create a more "inclusive and equitable" motor insurance framework. The ministry added they wanted to create a favourable environment for vintage car owners and collectors, hence proposing a 50 per cent discount on insurance premiums for private vehicles that are registered as 'vintage cars'.

 

The proposal also recommended a 6.5 per cent reduction in the base premium rate for three-wheeler passenger vehicles.

The ministry and Irdai have further invited all stakeholders to share their comments and suggestions on the proposal within a 30-day period.