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Pay more for two-wheeler insurance from April 1

Pay more for two-wheeler insurance from April 1
CarTrade Editorial Team CarTrade Editorial Team Thursday 31 March 2016, 16:08 PM

The Insurance Regulator and Development Authority of India (IRDA) is the reason why you’ll have to pay more for your scooter insurance in future.

This governmental regulatory body has proposed a hike of up to 40 per cent for two-wheeler insurance from April 1, 2016. Every year, the IRDA conducts an analysis of the number of claims made and loss ratios for the insurers and accordingly sets a new rate for every new financial year. As per the body, the cost inflation index has increased by 5.57 per cent in comparison to the last financial year.

Due to this new ruling, the third-party premium rate for two-wheelers with an engine capacity till 75cc has gone up to Rs 569 from Rs 519. Scooters and motorcycles that fall under 75cc-150cc category will see a premium increase of 15 per cent, up to Rs 619 while there is an increase of 25 per cent for motorcycles falling between 150cc-350cc. However, the premium has been reduced to Rs 884 for motorcycles with engine capacity of more than 350cc.

 

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