The Insurance Regulatory and Development Authority (Irda) has increased the third-party motor premium by up to 70% from April 25.
Irda said that based on the concerns expressed by various stakeholders during discussions, premium for goods carrying and passenger carrying vehicles has been brought down by 15% and so the real change is 68%.
The new rates will be based on parameters, like average claims cost for each class of vehicle, frequency of claims for each class of vehicle and cost inflation index for the year of review, Irda said. "There is some relief after the hike.
The regulator has asked companies to be mindful of the concerns expressed by vehicle owners about both the rates and availability of insurance. Moreover, the regulator said that it will treat any complaint of non-availability of insurance or use of methods to deny or delay the client seeking insurance cover, seriously.
Categories: General Insurance
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