Govt proposes lower rate of third party premium for EVs for next FY

NEW DELHI: The road transport ministry has proposed a lower rate of third party (TP) premium for electric and hybrid electric vehicles for the next financial year while proposing a marginal increase in the premium for all other categories of vehicles. The only exception is for the multi-axle trailers where the premium may increase by nearly 6%.
After two years’ moratorium due to Covid-19 pandemic, the revised TP insurance premium will come into effect from April 1. This is also for the first time that the road transport ministry will notify the TP rates in consultation with the insurance regulator IRDA. Earlier, this was done by the regulator.
According to the proposed revised rates, private 1,000 CC cars such as Alto, Wagon R would attract rates of Rs 2,094 compared to Rs 2,072 in 2019-20. Similarly, the medium range cars would attract rates of Rs 3,416 compared to Rs 3,221 and owners of cars above 1,500 CC would need to pay a premium of Rs 7,897 against Rs 7,890. The ministry has invited suggestions and objections from all stakeholders by March 14 before notifying the final rates.