The Ministry of Road Transport and Highways (MoRTH) has increased the third-party motor insurance premium for various categories of vehicles with effect from June 1, a decision which is likely to jack up the insurance cost of cars and two-wheelers, reported PTI.
According to the revised rates notified by the MoRTH on Wednesday, private cars with an engine capacity of 1,000 cc will attract rates of Rs 2,094 compared to Rs 2,072 in 2019-20.
Similarly, private cars with an engine capacity between 1,000 cc and 1,500 cc will attract rates of Rs 3,416 compared to Rs 3,221, while owners of cars above 1,500 cc will see a drop in premium from Rs 7,897 to Rs 7,890.
Two-wheelers over 150 cc but not exceeding 350 cc will attract a premium of Rs 1,366 and for over 350 cc, the revised premium will be Rs 2,804.
After a two-year moratorium due to the COVID-19 pandemic, the revised third-party (TP) insurance premium will come into effect from June 1.