Vehicle insurance premiums might increase from April

Buying an insurance can get expensive from April if the relevant stakeholders accept the government’s proposal. This proposal has been proposed by the Ministry of Road Transport. According to this, third party motor insurance premiums could witness a hike of 21%, which will make buying these insurance expensive than ever. The Ministry of Road Transport justifies these increments in insurance premiums as they haven’t been revised in the past few years, since the beginning of the pandemic. Every year, third party insurance premium rates are revised by the Insurance Regulatory and Development Authority of India (IRDAI).In India, Third party insurance is legally compulsory for all the vehicle owners. It basically covers the damages of another party in event of an accident. If the proposal is passed it will eventually be passed on to the owners. If you want to escape from this hike in third party insurance, you can renew or avail of a new insurance policy before April 1, 2022. However, interestingly the premium for two wheelers with an engine capacity between 75 to 100 cc has been decreased by 5 %. To promote electric mobility, the insurance premium on electric cars and two wheelers has been decreased by 15%.