From April 1, the Ministry of Road Transport and Highways has announced to make third party insurance of vehicles expensive.Â
This is going to have a direct impact on the pockets of the customers and buying third party insurance will now be costly. Here we are telling how expensive the insurance of which type of vehicle will be.
If your vehicle insurance is going to expire, then renew it soon because from April 2022 this work is going to cost you more than before. The central government has proposed to increase third party motor insurance for many vehicles in the next financial year starting from April.
This information has come to the fore in the draft notification of the Ministry of Road Transport and Highways (MoRTH). For this proposal, the government is taking suggestions and objections till March 14, after which the base premium of third party insurance will be increased.
15% discount on electric vehicles
A discount of 15 percent is going to be given on insurance of private electric cars, electric two-wheelers and electric passenger, commercial vehicles along with goods carriers. This step is going to be taken to promote eco friendly vehicles.
The government is preparing to give 7.5 percent discount on hybrid electric vehicles. On cars with 1.0-litre engine, cars with 1,500 cc engine and more powerful bikes apart from 150-350 cc, customers will now have to pay more insurance base premium than before.
What is third party insurance
The base premium of commercial vehicle insurance is also going to increase, which is going to see a big increase. Under third party insurance, own vehicle covers excessive damage and it is mandatory for the vehicle owners to buy it.
This insurance covers the death of a third party, usually in the event of death in a road accident. Let us inform that the Ministry of Road Transport and Highways has sought suggestions regarding the draft notification by the end of March 2022 on increasing the premium of insurance.
