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Motor Insurance Rates Hiked From April
Motor Insurance will see an hike in price ranging between 6% and 40%. The most affected vehicles due to this rate hike will be commercial vehicles. The third party insurance premiums have bee increased considering inflation, average claim amounts and expenses.
Insurance companies have said they were not exactly satisfied with the increase in the rates. They have said they will continue to suffer losses. Third party insurance is the mandatory insurance that vehicle users must buy to protect accident victims.
Reports say the hike for passenger cars has been marginal. The rates have increased from Rs.880 to Rs.925. Commercial three wheelers will have to pay Rs.3,415 per year from the current Rs.2,440. Heavy trucks need to pay as much as Rs.9,818 from Rs.8,420.
Insurance companies have increased own damage rates too. This is due to the fact that nation reinsurer GIC Re has increased rates by 15 to 20%. Insurance industry regulator IRDA which increased the rates said the increase was necessitated as there was no decrease in the number of road accidents and there was no improvement in road conditions.
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