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New Delhi: The Ministry of Road Transport and Highways (MoRTH) has issued a new draft notification on the premium for mandatory third-party motor cover for the current financial year (FY24). In the draft notification, MoRTH has proposed not revising the annual motor third party (TP) premium and also suggested reducing premium for a couple of segments in FY24.
The draft rules have been formulated in consultation with the Insurance Regulatory and Development Authority of India (IRDAI), aiming to bring clarity and transparency to motor insurance regulations.
The draft rules have also introduced several discounts on the premium rates to incentivize specific categories of vehicle owners. For buses for educational institution, a discount of 15% has been proposed, acknowledging the important role they play in transporting students. Furthermore, private cars registered as vintage vehicles may enjoy a significant discount of 50%, recognizing their historical and cultural value.
In a move towards promoting sustainable transportation, the draft rules propose discounts for electric vehicles and hybrid electric vehicles. Electric vehicles are proposed to receive a discount of 15% on premium rates, while hybrid electric vehicles may get a discount of 7.5%. These incentives aim to encourage the adoption of cleaner and greener modes of transport.
The draft notification also addresses premium rates for three-wheeled passenger carrying vehicles. A reduction of approximately 6.5% in the base premium rate has been proposed for this category, ensuring a fair and affordable insurance framework for these vehicles.
MoRTH and IRDAI have sought feedback on the draft rules from all stakeholders, including insurance companies, vehicle owners, and the general public.
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Updated: 20 Jun 2023, 06:06 PM IST
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