The Central Government has recently announced the basic premium for third party insurance for unlimited liability for various types of vehicles, including private cars, two-wheelers and trucks – powered by fuel and electricity. This may lead to higher prices for electric vehicles, petrol and diesel cars due to the increase in insurance rates. A notification issued by the Ministry of Road Transport and Highways states that the new rates will come into effect from June 1, 2022.
According to the ministry, hybrid electric vehicles will get a 7.5 per cent discount on premiums. However, EV has also increased third party insurance rates.
Here are the electric vehicle insurance rates that will come into effect from June 1, 2022
1. Private cars: For private four-wheeler electric cars with a power output of more than 30 kW, the revised insurance rate will be Rs 1,780. If an EV has more than 30 kW of power output but not more than 65 kW, the new insurance rates have been fixed at Rs 2,904. For an electric car, a private car with a power output of more than 65 kW, the owners have to pay an insurance of Rs 6,712.
2. Two-wheelers: These two-wheelers, which generate less than 3 kilowatts of electricity, now get an insurance premium of Rs 457, while those with more than 3 kilowatts but not more than 7 kilowatts get an insurance premium of Rs 607. Others, owners of two-wheelers over 7 kW but not more than 16 kW will have to pay a premium of Rs 1,161. For those with more than 16 kW of EV power, the premium will be Rs 2,383.
3. EV Long Term Premium for Four Wheelers: For a new private car, the premium will be Rs. 5,543 for three years for vehicles not exceeding 30 kW and Rs. 9,044. For vehicles over 65 kW, the premium will be Rs 20,907.
4. EV Long Term Premium for Two Wheelers: For a new private car, the premium is Rs 2,466 for five years for vehicles not exceeding 3 KW and Rs 2,466 for vehicles with power output exceeding 3 KW but not more than 7 KW. 3,243. Vehicles with more than 7 kW but not more than 16 kW will get a premium of Rs 6,260 and two-wheelers with more than 16 kW will get a premium of Rs 12,849.
Third party insurance coverage is exclusive of personal damages, and is also mandatory for personal damages that the vehicle owner must purchase. This insurance cover covers any collateral damage caused by a third party, in general, a human being or a road accident.
Earlier, the Insurance Regulatory and Development Authority of India (IRDAI) had announced third party insurance rates. This is the first time that the Ministry of Road Transport has released third party insurance rates in consultation with the Insurance Regulator.
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