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NOW IRDAI WILL PERMIT LONG TERM VEHICLE INSURANCE:
Dated 08.12.2022 : In order to allow the policyholders a wider choice, IRDAI has proposed to permit all General Insurers to offer the long-term Motor Insurance policies as specified hereunder.
TERMS & CONDITIONS :
1. There shall be a ‘Board-approved policy’ set up by the Insurer containing ects relating to operational matters, accounting (including provisioning requirements) and disclosures for addressing the issue pertaining to cancellation of policy including claw-back of commission.
2. Pricing of long-term policies is to be made based on sound actuarial principles considering all the relevant aspects of rating including claims experience, lower anti-selection, reduced policy administration and acquisition costs given higher renewal rates, long-term discount, expected NCB level by the end of the policy period and applicable government taxes etc. The pricing of add-on and optional covers may likewise consider the cost efficiencies of policy administration.
3. The Insured Declared Value (IDV) (the Sum Insured) agreed to by the policyholder, the Premium and the add-ons applicable for each year shall be mentioned in the policy schedule. The depreciation rate to apply on the IDV agreed shall not exceed 10% per annum during the policy period.
4. The premium for the entire term of the policy coverage shall be collected at the time of sale of insurance. But the premium for the year shall only be recognised as income and the remaining amount shall be treated as "Premium Deposit" or “Advance Premium".
5. All long-term policies would have standard conditions relating to Cancellation/refund of premium as below:
A. Every long-term Motor Own Damage policy shall have a 30-day free-look period from the date of inception of the policy, to enable the policyholder to review the terms and conditions of the policy. The policyholder is entitled to refund of premium on pro-rata basis in the event of exercising the free-look cancellation.
B. The long-term motor Own Damage policy can be cancelled during the tenure of the policy either by a policyholder or by the insurer by giving the notice of cancellation. The refund of premium in such instance would be as under: i. Future Year Premiums - to be refunded in full
C.
For IRDAI Notification , CLICK HERE
Dated 08.12.2022 : In order to allow the policyholders a wider choice, IRDAI has proposed to permit all General Insurers to offer the long-term Motor Insurance policies as specified hereunder.
- 3-year in respect of Private cars co-terminus with Motor Third Party Liability cover.
- 5-year in respect of Two-Wheelers co-terminus with Motor Third Party Liability cover.
- 3-year in respect of erstwhile Indian Motor Tariff Class D (Miscellaneous and Special Types of Vehicles hereafter referred as Class D Vehicles) co-terminus with Motor Third Party Liability cover.
- Motor add-ons co-terminus with the Motor Own Damage cover in respect of Private Car, Two-wheelers and Class D vehicles
TERMS & CONDITIONS :
1. There shall be a ‘Board-approved policy’ set up by the Insurer containing ects relating to operational matters, accounting (including provisioning requirements) and disclosures for addressing the issue pertaining to cancellation of policy including claw-back of commission.
2. Pricing of long-term policies is to be made based on sound actuarial principles considering all the relevant aspects of rating including claims experience, lower anti-selection, reduced policy administration and acquisition costs given higher renewal rates, long-term discount, expected NCB level by the end of the policy period and applicable government taxes etc. The pricing of add-on and optional covers may likewise consider the cost efficiencies of policy administration.
3. The Insured Declared Value (IDV) (the Sum Insured) agreed to by the policyholder, the Premium and the add-ons applicable for each year shall be mentioned in the policy schedule. The depreciation rate to apply on the IDV agreed shall not exceed 10% per annum during the policy period.
4. The premium for the entire term of the policy coverage shall be collected at the time of sale of insurance. But the premium for the year shall only be recognised as income and the remaining amount shall be treated as "Premium Deposit" or “Advance Premium".
5. All long-term policies would have standard conditions relating to Cancellation/refund of premium as below:
A. Every long-term Motor Own Damage policy shall have a 30-day free-look period from the date of inception of the policy, to enable the policyholder to review the terms and conditions of the policy. The policyholder is entitled to refund of premium on pro-rata basis in the event of exercising the free-look cancellation.
B. The long-term motor Own Damage policy can be cancelled during the tenure of the policy either by a policyholder or by the insurer by giving the notice of cancellation. The refund of premium in such instance would be as under: i. Future Year Premiums - to be refunded in full
C.
- For the policy year in which policy is cancelled:
- Where no claims are reported during the year - Refund of pro-rata premium pertaining to the year of cancellation
- Where claims are reported during the year – No refund of premium
- GST and other government taxes – refund to the extent permissible from t concerned authorities
For IRDAI Notification , CLICK HERE
CAR INSURANCE / TWO WHEELER INSURANCE PREMIUM FOR FY 2022-23
CAR INSURANCE PREMIUM
TWO WHEELER INSURANCE PREMIUM
CAR INSURANCE / TWO WHEELER INSURANCE PREMIUM FROM APRIL 1, 2022 : NEW RATES GAZETTED
Dated 27.05.2022 : The Government of India has now gazetted and notified the third party premium for various vehicles as per draft proposal dated 04.03.2022 of Insurance Regulatory & Development Authority of India ( IRDAI ) , Vehicle insurance premium of various motor vehicles will be as follows :
The proposed rates of TP PREMIUM ( Third Party ) for private cars below 1000 cc is Rs 2,094 and Rs 3,416 for cars of between 1000 cc to 1500 cc . However for bigger cars TP Premium will be Rs 7,897 .
The proposed rates of TP PREMIUM ( Third Party ) for two wheeler below 75 cc is Rs 538 and Rs 714 for two wheeler between 75 cc to 150 cc , Rs 1,366 for two wheeler between 150 cc to 350 cc . However bigger two wheeler will have TP Premium of Rs 2,804 .
ELECTRIC VEHICLES
However for the Electric vehicles , premium schedules are as follows :
The proposed rates of TP PREMIUM ( Third Party ) for private cars below 30 KW is Rs 1,780 and Rs 2, 904 for cars of between 30KW to 65KW . However for bigger cars TP Premium will be Rs 6,712 .
The proposed rates of TP PREMIUM ( Third Party ) for two wheeler below 3KW is Rs 457 and Rs 607 for two wheeler between 3KW to 7KW , Rs 1,161 for two wheeler between 7KW to 16KW . However bigger two wheeler will have TP Premium of Rs 2,383 .
The premium rates are effective from 01.04.2022 .
To go through the premium chart for various types of vehicles , read Gazette notification dated 25.05.2022
Dated 27.05.2022 : The Government of India has now gazetted and notified the third party premium for various vehicles as per draft proposal dated 04.03.2022 of Insurance Regulatory & Development Authority of India ( IRDAI ) , Vehicle insurance premium of various motor vehicles will be as follows :
The proposed rates of TP PREMIUM ( Third Party ) for private cars below 1000 cc is Rs 2,094 and Rs 3,416 for cars of between 1000 cc to 1500 cc . However for bigger cars TP Premium will be Rs 7,897 .
The proposed rates of TP PREMIUM ( Third Party ) for two wheeler below 75 cc is Rs 538 and Rs 714 for two wheeler between 75 cc to 150 cc , Rs 1,366 for two wheeler between 150 cc to 350 cc . However bigger two wheeler will have TP Premium of Rs 2,804 .
ELECTRIC VEHICLES
However for the Electric vehicles , premium schedules are as follows :
The proposed rates of TP PREMIUM ( Third Party ) for private cars below 30 KW is Rs 1,780 and Rs 2, 904 for cars of between 30KW to 65KW . However for bigger cars TP Premium will be Rs 6,712 .
The proposed rates of TP PREMIUM ( Third Party ) for two wheeler below 3KW is Rs 457 and Rs 607 for two wheeler between 3KW to 7KW , Rs 1,161 for two wheeler between 7KW to 16KW . However bigger two wheeler will have TP Premium of Rs 2,383 .
The premium rates are effective from 01.04.2022 .
To go through the premium chart for various types of vehicles , read Gazette notification dated 25.05.2022
CAR INSURANCE / TWO WHEELER INSURANCE PREMIUM FROM APRIL 1, 2022 : DRAFT PROPOSAL
Dated 05.03.2022 : Insurance Regulatory & Development Authority of India ( IRDAI ) has proposed Vehicle insurance premium of various motor vehicles as per draft proposal dated 04.03.2022 . Anybody can submit any objections to the IRDAI WITHIN 10 DAYS OF ITS NOTIFICATION .
To know the proposal for various other types of vehicles and to read the draft proposal , CLICK HERE
Dated 05.03.2022 : Insurance Regulatory & Development Authority of India ( IRDAI ) has proposed Vehicle insurance premium of various motor vehicles as per draft proposal dated 04.03.2022 . Anybody can submit any objections to the IRDAI WITHIN 10 DAYS OF ITS NOTIFICATION .
To know the proposal for various other types of vehicles and to read the draft proposal , CLICK HERE
POLLUTION CERTIFICATE NOT TO BE INSISTED FOR SETTLING THE CLAIM : IRDAI
Dated 27.08.2020 : As per Press release dated 26.08.2020 of Insurance Regulatory & Development Authority of India ( IRDAI ) , Insurance companies cannot reject any claim on motor insurance on the ground that the vehicle has no Pollution certificate . . However insurance companies have been advised to obtain pollution certificates at the time of renewals of the insurance
Dated 27.08.2020 : As per Press release dated 26.08.2020 of Insurance Regulatory & Development Authority of India ( IRDAI ) , Insurance companies cannot reject any claim on motor insurance on the ground that the vehicle has no Pollution certificate . . However insurance companies have been advised to obtain pollution certificates at the time of renewals of the insurance
NO LONG TERM INSURANCE FOR NEW VEHICLES : IRDAI
Dated 10.06.2020 : As per Notification dated 08.06.2020 of Insurance Regulatory & Development Authority of India ( IRDAI ) , Insurance companies cannot offer long term insurance of 3 years / 5 years for new vehicles like cars and two wheeler effective from 01.08.2020 .
The reasons attributed by IRDAI for the withdrawal of the facility are "
1. Actual Pricing is a challenge for Insurance companies
2. Affordability of customers to pay a large sum of insurance
3. Vehicle owners are unable to shift in case of deficiency of service
4. No claim bonus is not uniform among insurers .
Dated 10.06.2020 : As per Notification dated 08.06.2020 of Insurance Regulatory & Development Authority of India ( IRDAI ) , Insurance companies cannot offer long term insurance of 3 years / 5 years for new vehicles like cars and two wheeler effective from 01.08.2020 .
The reasons attributed by IRDAI for the withdrawal of the facility are "
1. Actual Pricing is a challenge for Insurance companies
2. Affordability of customers to pay a large sum of insurance
3. Vehicle owners are unable to shift in case of deficiency of service
4. No claim bonus is not uniform among insurers .
CENTRAL GOVERNMENT EXTENDS GRACE PERIOD FOR INSURANCE RENEWAL
Dated 16.04.2020 : In view of lock-down in the wake of spread of pandemic COVID-19 , Finance Ministry has permitted time up to 15th, May 2020 for making renewal payment for health insurance policies and Third party motor insurance which have lapsed / lapsing during lock down period from 25.03.2020 to 03.05.2020 and this will ensure a continued cover and hassle-free claims payment during the grace period.
If you are unable to make payment of your renewal premium on time in view of the prevailing situation in the country as a result of Corona Virus disease (COVID-19), you can make use of the relaxation and pay renewal premium to the insurers on or before the 15th May, 2020 to ensure continuity of the statutory motor vehicle third party insurance cover from the date on which the policy falls due for renewal, so that any valid claim triggered during the grace period can be paid.
For Gazette Notification dated 15.04.2020 , CLICK HERE
Dated 16.04.2020 : In view of lock-down in the wake of spread of pandemic COVID-19 , Finance Ministry has permitted time up to 15th, May 2020 for making renewal payment for health insurance policies and Third party motor insurance which have lapsed / lapsing during lock down period from 25.03.2020 to 03.05.2020 and this will ensure a continued cover and hassle-free claims payment during the grace period.
If you are unable to make payment of your renewal premium on time in view of the prevailing situation in the country as a result of Corona Virus disease (COVID-19), you can make use of the relaxation and pay renewal premium to the insurers on or before the 15th May, 2020 to ensure continuity of the statutory motor vehicle third party insurance cover from the date on which the policy falls due for renewal, so that any valid claim triggered during the grace period can be paid.
For Gazette Notification dated 15.04.2020 , CLICK HERE
ORDINANCE ON VEHICLE INSURANCE RENEWAL
Dated 03.04.2020 : If your vehicle insurance has lapsed on or after 25th, March 2020 and are unable to renew your car / scooter insurance , Relax .
As per ordinance issued by Government of India on 01.04.2020 , “The policy holders whose motor vehicle third party insurance policies fall due for renewal during the period on and from the 25th March, 2020 up to the 14th April, 2020 and who are unable to make payment of their renewal premium on time in view of the prevailing situation in the country as a result of Corona Virus
disease (COVID-19), are allowed to make such payment for renewal of policies to their insurers on or before the 21st April, 2020 to ensure continuity of the statutory motor vehicle third party insurance cover from the date on which the policy falls due for renewal.”
Hence you may go to the website of the insurance company and renew your policy on-line before 21.04.2020
To read Gazette notification dated 01.04.2020 , CLICK HERE
Dated 03.04.2020 : If your vehicle insurance has lapsed on or after 25th, March 2020 and are unable to renew your car / scooter insurance , Relax .
As per ordinance issued by Government of India on 01.04.2020 , “The policy holders whose motor vehicle third party insurance policies fall due for renewal during the period on and from the 25th March, 2020 up to the 14th April, 2020 and who are unable to make payment of their renewal premium on time in view of the prevailing situation in the country as a result of Corona Virus
disease (COVID-19), are allowed to make such payment for renewal of policies to their insurers on or before the 21st April, 2020 to ensure continuity of the statutory motor vehicle third party insurance cover from the date on which the policy falls due for renewal.”
Hence you may go to the website of the insurance company and renew your policy on-line before 21.04.2020
To read Gazette notification dated 01.04.2020 , CLICK HERE
CAR INSURANCE / TWO WHEELER INSURANCE PREMIUM TO GO UP IN FY 2019-20
Dated 22.05.2019 : As per draft proposal dated 20.05.2019 of Insurance Regulatory & Development Authority of India ( IRDAI ) , Vehicle insurance premium of various motor vehicles will increase in the current financial year 2019-20 .
The proposed rates of TP PREMIUM ( Third Party ) for private cars below 1000 cc is Rs 2,120 ( up from Rs 1,850 last year ) and Rs 3,300 for cars of between 1000 cc to 1500 cc ( Rs 2,863 last year ) . However bigger cars will continue to have TP Premium of Rs 7,890 only .
The proposed rates of TP PREMIUM ( Third Party ) for two wheeler below 75 cc is Rs 482 ( up from Rs 427 last year ) and Rs 752 for two wheeler between 75 cc to 150 cc ( Rs 720 last year ) , Rs 1,193 for two wheeler between 150 cc to 350 cc ( Rs 985 last year ) . However bigger two wheeler will continue to have TP Premium of Rs 2,323 only .
Effective date of the proposal is yet to be notified .
To know the proposal for various other types of vehicles , CLICK HERE
Dated 22.05.2019 : As per draft proposal dated 20.05.2019 of Insurance Regulatory & Development Authority of India ( IRDAI ) , Vehicle insurance premium of various motor vehicles will increase in the current financial year 2019-20 .
The proposed rates of TP PREMIUM ( Third Party ) for private cars below 1000 cc is Rs 2,120 ( up from Rs 1,850 last year ) and Rs 3,300 for cars of between 1000 cc to 1500 cc ( Rs 2,863 last year ) . However bigger cars will continue to have TP Premium of Rs 7,890 only .
The proposed rates of TP PREMIUM ( Third Party ) for two wheeler below 75 cc is Rs 482 ( up from Rs 427 last year ) and Rs 752 for two wheeler between 75 cc to 150 cc ( Rs 720 last year ) , Rs 1,193 for two wheeler between 150 cc to 350 cc ( Rs 985 last year ) . However bigger two wheeler will continue to have TP Premium of Rs 2,323 only .
Effective date of the proposal is yet to be notified .
To know the proposal for various other types of vehicles , CLICK HERE
KNOW YOUR VEHICLE INSURANCE POLICY
VEHICLE / MOTOR INSURANCE Basics
Types of Motor Insurance:
Broadly there are two types of insurances policies that offer motor insurance cover:
1. Liability Only Policy (Statutory requirement)
2. Package Policy (Liability Only Policy + Damage to owner’s Vehicle usually called O.D Cover
Remember that if you take only a Liability Only Policy, damage to your vehicle will not be covered. Hence, it would be prudent to take a Package Policy which would give a wider cover, including cover for your vehicle.
What Motor Insurance covers:
The damages to the vehicle due to the following perils are usually covered under OD section of the Motor Insurance policy:
a. Fire, Explosion, Self- Ignition, Lightning
b. Burglary/Housebreaking / Theft
c. Riot & Strike
d. Earthquake
e. Flood, Storm, Cyclone, Hurricane, tempest, inundation, hailstorm, frost
f. Accidental external means
g. Malicious Act
h. Terrorism acts
i. While in Transit by Rail/ Road, Inland waterways, Lift, Elevator or Air
j. Land slide / Rock slide
Types of Motor Insurance:
Broadly there are two types of insurances policies that offer motor insurance cover:
1. Liability Only Policy (Statutory requirement)
2. Package Policy (Liability Only Policy + Damage to owner’s Vehicle usually called O.D Cover
Remember that if you take only a Liability Only Policy, damage to your vehicle will not be covered. Hence, it would be prudent to take a Package Policy which would give a wider cover, including cover for your vehicle.
What Motor Insurance covers:
The damages to the vehicle due to the following perils are usually covered under OD section of the Motor Insurance policy:
a. Fire, Explosion, Self- Ignition, Lightning
b. Burglary/Housebreaking / Theft
c. Riot & Strike
d. Earthquake
e. Flood, Storm, Cyclone, Hurricane, tempest, inundation, hailstorm, frost
f. Accidental external means
g. Malicious Act
h. Terrorism acts
i. While in Transit by Rail/ Road, Inland waterways, Lift, Elevator or Air
j. Land slide / Rock slide
What Motor Insurance excludes:
The following contingencies are usually excluded under the Motor Insurance Policy:
Who issues Vehicle Insurance ?
All General Insurance Companies issue Vehicle Insurance .
To get the list of General Insurance companies and visit their website , Click Here
TIPS FOR BUYING VEHICLE INSURANCE .
1. Liability only insurance is mandatory for all vehicles . However it is prudent to cover damages to the vehicle also .
2. Insure for the correct value of the vehicle after depreciation on age of the vehicle .
3. All general insurance companies issue vehicle insurance . Compare premiums from various insurance companies . You can get quotations on line also .
4. Remember to renew before due date . Any lapse may cost additional premium and fresh inspection of the vehicle .
The following contingencies are usually excluded under the Motor Insurance Policy:
- Not having a valid Driving License
- Under Influence of intoxicating liquor/ drugs
- Accident taking place beyond Geographical limits
- While Vehicle is used for unlawful purposes
- Electrical/Mechanical Breakdowns.
Who issues Vehicle Insurance ?
All General Insurance Companies issue Vehicle Insurance .
To get the list of General Insurance companies and visit their website , Click Here
TIPS FOR BUYING VEHICLE INSURANCE .
1. Liability only insurance is mandatory for all vehicles . However it is prudent to cover damages to the vehicle also .
2. Insure for the correct value of the vehicle after depreciation on age of the vehicle .
3. All general insurance companies issue vehicle insurance . Compare premiums from various insurance companies . You can get quotations on line also .
4. Remember to renew before due date . Any lapse may cost additional premium and fresh inspection of the vehicle .
WHICH IS THE BEST INSURANCE COMPANY FOR CAR INSURANCE ?
There are various parameters for choosing a right insurance company which provides the best car insurance .
Some of the criterion to consider before buying a motor insurance is
1. No.of days taken to settle the Claim
2. Availability of Cashless claim facility
3. No. of Cashless garages
4. No. of Tie-Up Vehicle Manufacturers
5. Types of Add-On Covers available
6. After sales service like sending of renewal notice , claim settlement notice etc
7. Discount offered on Official premium
Further some insurance companies offer discount on on-line purchase .
Some of the criterion to consider before buying a motor insurance is
1. No.of days taken to settle the Claim
2. Availability of Cashless claim facility
3. No. of Cashless garages
4. No. of Tie-Up Vehicle Manufacturers
5. Types of Add-On Covers available
6. After sales service like sending of renewal notice , claim settlement notice etc
7. Discount offered on Official premium
Further some insurance companies offer discount on on-line purchase .
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