Description of vehicle Existing Rates (FY 2019-20) Rs. Proposed Rates (FY 2020-21) Rs. Private cars with engine capacity 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 with engine capacity 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

Third-party insurance premium for cars, two-wheelers and transport vehicles is likely to go up with the regulator Insurance Regulatory and Development Authority (IRDAI) proposing a substantial increase in these premium rates for the financial year 2020-21.However, as per the release issued on March 5, 2020, a discount of 15 percent is proposed for electric private cars, electric two-wheelers, electric Goods carrying Commercial Vehicles and electric passenger carrying vehicles. Apart from this, a discount of 7.5 percent on motor third party premium rates for hybrid electric vehicles is also proposed.Take a look at the new proposed third-party insurance premium for private cars and two-wheelers.The IRDAI has proposed to increase the Motor Third Party (TP) premium rates for cars with engines below 1000 cc to Rs 2,182 from the existing Rs 2,072 for fiscal 2020-21.Similarly, for cars between 1,000 cc and 1,500 cc the third-party premium is proposed to be increased to Rs 3,383 from the existing Rs 3,221. However, for luxury cars (with engine capacity of over 1,500 cc) no change in third party premium has been proposed from the existing Rs 7,890.The IRDAI has proposed to increase the TP premium rates for two-wheelers with engines below 75 cc to Rs 506 from the existing Rs 482 for fiscal 2020-21.Similarly, for two-wheelers between 75 cc and 150 cc, the premium is proposed to be increased to Rs 769 from the existing Rs 752. For two-wheelers between 150 cc and 350 cc the premium is being proposed to be increased to Rs 1,301 from the existing Rs 1,193. For two-wheelers with engines above 350 cc, the premium is proposed to be increased to Rs 2,571 from the existing Rs 2, 323 for fiscal 2020-21.The motor third party premium rates proposed by IRDAI for the year 2020-21 (ending March 31, 2021) for various categories of vehicles shall come into force from a date to be notified.The details of the proposed motor third party premium rates for private cars and two-wheelers are given below:Source: IRDAI