IRDAI cuts insurance rates for two-wheelers, cars, taxis
The insurance regulator on Thursday cut insurance rates on average from 10%-20% for two-wheelers, cars and taxis. The steepest year-on-year increase in rates was for luxury motorcycles at 110%. The new rates will be effective from April 1, 2018.
The Insurance Regulatory and Development Authority of India (IRDAI) cut rates by as high as 24% for small mopeds, scooties and two-wheelers with an engine capacity below 75cc to Rs 427 this April from Rs 569 last year. For scooters and motorbikes with engine capacity between 75cc and 150 cc — the most popular segment on Indian roads — there was no change in premium at Rs 720.
For high-powered two-wheelers with engine capacity between 150cc and 350 cc, there has been a nominal increase (1.5%) to Rs 985 from Rs 970. For luxury two-wheelers with engine capacity above 350 cc, rates have been jacked by 110% to Rs 2,323 from Rs 1,114.
For small car owners (below 1,000 cc) there has been a premium cut of 10% to Rs 1,850. For sedans (1,000-1,500 cc) and SUVs (above 1,500 cc), there has been a uniform rate cut of 8.5% to Rs 2,863 and Rs 7,890 respectively.
While taxi aggregators have reason to cheer, as private cabs now get a 17% cut, auto rickshaws will have to shell out more. Rates for autorickshaws and e-rickshaws increased 6.5% to Rs 2,595 and Rs 1,685 respectively.
Insurance rates for taxi owners of smaller commercial cars like Tata Indica and Chevrolet Beat will have to pay Rs 5,437 annually, those plying entry-level sedans might have to shell out Rs 7,147 a year. Luxury cars in the Ola, Uber space also get a break with the 17% cut meaning they have to Rs 9,472 from Rs 11,144 earlier.
For goods carrying public vehicles insurance rates have increased from 6-13%. Public transporters will now have to pay anywhere between Rs 24,190 and Rs 39,367. For those small trucks, plying vegetables, fruits and flowers, within city streets there is reason to cheer as premiums go down by 11% to Rs 7,144.
But transporting perishable goods, grains and other commodities interstate might prove more expensive as insurance for trucks goes up 8.2% to Rs 15,620. Large trailers carrying cars, petroleum and LPG will see the benefit of a 9.4% cut with premium of Rs 21,318.
Insurance rates for small motorised three-wheeler vegetable and fish carts also get a 25% cut with insurance now at Rs 4,544. For those plying eco-friendly models the premium is lower at Rs 3,175. Motor pedal cycles, three-wheelers and e-carts get a 33% cut to Rs 3,150 and Rs 2,579 respectively.
While small tractors less than 6 HP get a 14% cut to Rs 714, other specialised trailers and vehicles used in agriculture have seen a 12.5%.
For state transport corporations plying long routes, hiring more drivers to take turns for shifts will prove more expensive. Driver insurance saw a 14.5% rise to Rs 1,296; and state buses will have to spend 14.5% for every additional driver engaged as the insurance goes up to Rs 627 for extra staff.
With city streets overrun with share autos jostling for space with motorcycles, cars and public transport, IRDAI has jacked up prices for share autos by 6.5-14.5%. Smaller share autos saw a relatively lower increase with premiums up 6.5% to Rs 6,222, while larger share autos saw a steep 14.5% increased to 14,261.
With the concept of bikes on hire not really taken off in India — with only a few state government permitting it — IRDAI kept rates stable at Rs 790 for all commercial bikes with engine capacity between 75cc- 350cc.
Source: Times of India