Third-party motor insurance prices are going to increase by ~40% from 1st June. These prices are revised every year by the IRDAI, and for 2022, they’ll be applicable in the next few days. Third-party insurances are mandatory for every vehicle in India. Let’s see by how much are these prices being increased!
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What is a Third-Party Motor Insurance?
A third-party insurance covers any liabilities arising from an individual other than you in case of an accident. So if you were to bump into someone else’s car, your third-party insurance would pay for the damages done to that car. This is a mandatory insurance in India and one cannot legally drive without it.
Also Read – Types of Car Insurance Deductibles!
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What’s the price hike like?
For 4 wheelers:
| Category | Rate of Hike |
| Upto 1000cc | 39.9% |
| 1001 – 1500cc | 40% |
| Above 1500cc | 25% |
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For 2 wheelers:
| Category | Rate of Hike |
| Upto 75cc | 9.6% |
| 76 – 150cc | 15% |
| 150cc – 350cc | 25% |
This is the first time that the notification of these price hikes in insurance has been released by MoRTH. Usually, this notification is released directly by the IRDAI (Insurance Regulatory and Development Authority of India).
Related – Most asked Insurance-related Questions
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