Safeguarding your ride: Understanding third-party car insurance price lists for 2024
Decoding 2024 third-party car rates
As per the Motor Vehicles Act of 1988, every car owner must mandatorily maintain valid car insurance. To maintain the legal standards third-party car insurance is enough. Zurich Kotak General Insurance is a noteworthy name in this category.
The Ministry of Road Transport has proposed in consultation with the IRDAI that the third-party car insurance price will remain unaltered in the FY 2023-’24. You must note that third-party cover is available for both private and commercial vehicles.
Working strategy
Third-party car insurance is a car plan which the vehicle owner must mandatorily purchase to act as a protective shield against third-party claims due to any accidental circumstance involving your vehicle. The scale of the accident is not a factor here. However, this is exclusively crafted for the third party and the policyholder does not benefit from it.
Third-party car insurance rates
This article will highlight the prices of third-party car insurance rates. It is determined depending on the size and capacity of the concerned vehicle.
Private car third-party premium rates
VEHICLE TYPE (PRIVATE CARS) | RATES (INR) |
Not exceeding 1000 cc | 2094 |
Over 1000 cc but within 1500 cc | 3416 |
Over 1500 cc | 7897 |
New private car: 3-year single premium rates
VEHICLE CATEGORY (PRIVATE CAR) | RATES (INR) |
Not exceeding 1000 cc | 6521 |
Over 1000 cc but within 1500 cc | 10640 |
Over 1500 cc | 24596 |
Third-party premium rates for private electric vehicles
VEHICLE CATEGORY (PRIVATE CAR) | RATES (INR) |
Within 30 KW | 1780 |
Over 30 KW but within 65 KW | 2904 |
Over 65 KW | 6712 |
Three-years single premium rates for private EVs
VEHICLE CATEGORY (PRIVATE CAR) | RATES (INR) |
Within 30 KW | 5543 |
Over 30 KW but within 65 KW | 9044 |
Over 65 KW | 20907 |
Proposed discounts
The base premium rates for third-party car insurance are regulated by MoRTH according to Section 147 of the Motor Vehicles Act of 1988. Here, it proposes a base premium for third-party cover with unrestricted liabilities among varied vehicle classes.
According to the information disclosed to the Press Information Bureau issued back on 20 June 2023, the following discounts have been proposed:
A special discount of 15% has been proposed for buses of educational organisations
Any private car registered as a Vintage Car may enjoy a special discount of 50% as per the proposal
A discount of 15% has been proposed for EVs and 7.5% for hybrid EVs
Apart from these, the authorities have also proposed a special reduction of approximately 6.5% in the basic premium rates for three-wheeler passenger-carrying vehicles.
Conclusion
We have shed light on the base premium rates of private vehicles for third-party car insurance. Although the base premium rates remain unaltered, there have been proposals for several other discounts. However, these are only draft notifications and are yet to be finalised. The Ministry is open to suggestions, feedback, and comments from all the stakeholders. These suggestions might lead to evolving something different. It is a matter of time to know what is actually changing or remaining unchanged.
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