The Ministry of Road Transport and Highways (MoRTH) has issued a draft notification G.S.R 441(E) dated 14.06.2023, proposing Motor Third Party Premium and Liability Rules for the Financial Year (FY) 2023-24, in consultation with Insurance Regulatory and Development Authority of India (IRDAI).
In line with section 147 of the Motor Vehicles (MV) Act, 1988, MoRTH prescribes the base premium rates for motor third party insurance from time to time. In the said rules, base premium for third party insurance for unlimited liability has been proposed for various classes of vehicles.
Following discounts in premium are also proposed to be allowed in the said rules:
• A discount of 15% has been proposed for educational institution buses.
• A discount of 50% has been proposed for a private car registered as Vintage Car.
• A discount of 15% and 7.5% has been proposed for Electric vehicles and Hybrid Electric Vehicles, respectively.
Further, a reduction of about 6.5% in the base premium rate has been proposed for 3-wheeled passenger carrying vehicles. Comments and suggestions are invited from all stakeholders within a period of thirty days.
