Third-Party Motor Insurance Premium May Increase from 1st June-2022

Third-party motor insurance premium for different categories of vehicle is going to increase from 1st June 2022. This was announced by the Ministry of Road Transport and Highways (MoRTH) on 25th May. The increase in the premiums is the first in three years with the last revision seen in FY 2019-20.

Premium for Old four-wheelers

Engine capacity	Old 4W TP rate	New 4W TP rate (effective 1st June 2022)	Difference in rates
Old four-wheeler not exceeding 1000 cc	₹2,072	₹2,094	1.1%
Old four-wheeler exceeding 1000 cc but not exceeding 1500cc	₹3,221	₹3,416	6.1%
Old four-wheeler exceeding 1500 cc	₹7,890	₹7,897	0.1%

Premium for old two-wheelers

Engine capacity	Old 2W TP rate	New 2W TP rate (effective 1st June 2022)	Difference in rates
Old two-wheeler not exceeding 75 cc	₹482	₹538	11.6%
Old two-wheeler exceeding 75 cc but not exceeding 150 cc	₹752	₹714	-5.1%
Old two-wheeler exceeding 150 cc but not exceeding 350 cc	₹1,193	₹1,366	14.5%
Old two-wheeler exceeding 350 cc	₹2323	₹2,804	20.7%

Premium for new four-wheelers (3-year Single Premium policy)

Engine capacity	Old 4W TP rate	New 4W TP rate (effective 1st June 2022)	Difference in rates
New four-wheeler not exceeding 1000 cc	₹5,286	₹6,521	23.4%
New four-wheeler exceeding 1000 cc but not exceeding 1500cc	₹3,285	₹10,640	11.6%
New four-wheeler exceeding 1500 cc	₹24,305	₹24,596	1.2%

Premium for New two-wheelers (5-year Single Premium policy)

Engine capacity	Old 2W TP rate	New 2W TP rate (effective 1st June 2022)	Difference in rates
New two-wheeler not exceeding 75 cc	₹1,045	₹2,901	177.6%
New two-wheeler exceeding 75 cc but not exceeding 150 cc	₹3,285	₹3,851	17.2%
New two-wheeler exceeding 150 cc but not exceeding 350 cc	₹5,453	₹7,365	35.1%

Premiums for new Electric Vehicle (EV) two-wheeler (5 –year Single Premium policy)

Vehicle kilowatt capacity (KW)	Old EV TP rate	New EV TP rate (effective 1st June 2022)	Difference in rates
Not exceeding 3KW	₹888	₹2,466	177.6%
Exceeding 3KW but not exceeding 7KW	₹2,792	₹3,273	17.2%
Exceeding 7KW but not exceeding 16KW	₹4,635	₹6,260	35.1%
Exceeding 16KW	11,079	₹12,849	16.0%

Premiums of Goods Carrying Vehicles - Public Carriers (other than 3 wheelers)

Engine capacity	Old 4W TP rate	New 4W TP rate (effective 1st June 2022)	Difference in rates
Not exceeding 7500 kg	₹15,746	₹16,049	1.9%
Exceeding 7500 kgs but not exceeding 12,000 kgs	₹26,935	₹27,186	0.9%
Exceeding 12,000 kgs but not exceeding 20,000 kgs	₹33,418	₹35,313	5.7%
Exceeding 20,000 kgs but not exceeding 40,000 kgs	₹43,037	₹43,950	2.1%
Exceeding 40,000 kgs	₹41,561	₹44,242	6.5%

Premium of Goods Carrying Vehicles – Private Carriers (other than 3 wheelers)

Engine capacity	Old 4W TP rate	New 4W TP rate (effective 1st June 2022)	Difference in rates
Not exceeding 7500 kg	₹8,438	₹16,049	90.2%
Exceeding 7500 kgs but not exceeding 12,000 kgs	₹17,204	₹27,186	58.0%
Exceeding 12,000 kgs but not exceeding 20,000 kgs	₹10,876	₹35,313	224.7%
Exceeding 20,000 kgs but not exceeding 40,000 kgs	₹17,476	₹43,950	151.5%
Exceeding 40,000 kgs	₹24,825	₹44,242	78.2%

Premium of Agricultural Tractors

Engine capacity	Old TP rate	New TP rate (effective 1st June 2022)	Difference in rates
Up to 6HP	₹857	₹910	6.2%

Premium of autorickshaw and e-rickshaw

Segment	Old TP rate	New TP rate (effective 1st June 2022)	Difference in rates
Autorickshaw	₹2,595	₹2,539	-2.2%
E-Rickshaw	₹1,685	₹1,648	-2.1%

Premium of Buses

Segment	Old TP rate	New TP rate (effective 1st June 2022)	Difference in rates
Educational institution bus	₹13,874	₹12,192	-12.1%
Other than educational institution bus	₹14,494	₹14,343	-1.00%

It needs to be mentioned here that this is the first time that MoRTH has revised the rates in consultation with Insurance Regulatory and Development Authority of India (IRDAI). Earlier, the insurance regulator notified the third-party rates.

The third-party insurance cover is for any collateral damage caused to a third-party, because of a road accident. It is mandatory along with the own damage cover that a vehicle owner has to purchase.