Vehicle Insurance Premiums to Increase from June 1

Vehicle insurance premiums are set to rise on June 1st, following the acceptance of the government's proposal by the relevant stakeholders. According to the Ministry of Road Transport's now-approved proposal, third-party motor insurance premiums have increased by up to 21%, making it more expensive than ever to ensure your car or two-wheeler.

Since the start of the COVID-19 pandemic two years ago, insurance premiums have not been revised. The most recent revision was in 2019-20, which could be used to justify the ministry's relatively steep hike. It is worth noting that the Insurance Regulatory and Development Authority of India (IRDAI) annually revises third-party insurance premium rates.

Third-party insurance is required by law, so any increase in premiums will be passed on to vehicle owners. Third-party insurance, which covers damage to others in the event of a car accident, is required in addition to coverage for one's own injuries. You can avoid this by renewing your vehicle insurance policy before June 1, 2022.

Surprisingly, premiums for two-wheelers with engine capacities ranging from 75 to 150cc have been reduced by 5%. Premiums for private cars with capacities greater than 1,500cc will also see a nominal increase of Rs. 7.