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News18
2 days ago
- Automotive
- News18
Car Insurance May Get Costlier, Here's How Much You'll Need To Pay
Last Updated: The Road Transport Ministry is likely to decide on the proposal in 2–3 weeks. A draft notification will be issued for public feedback once it gets approval The government is considering an imminent increase in the motor third-party insurance premium, based on recommendations from the insurance sector regulator, IRDAI. According to a CNBC-TV18 report, this proposal has led to a significant rise in the shares of companies such as ICICI Lombard General Insurance, Go Digit General Insurance, and New India Assurance Company. IRDAI has suggested an average premium increase of 18 percent, with some vehicle categories seeing hikes of up to 20 to 25 percent. The Ministry of Road Transport and Highways (MoRTH) will make the final decision on this proposal, expected within the next 2 to 3 weeks. Once approved, a draft notification will be issued for public consultation, followed by a review process before implementation. Moneycontrol published this report, and due to its impact, the shares of insurance companies saw a rise. Shares of ICICI Lombard rose by 7 percent, reaching the highest level in the last three months. Shares of Go Digit Insurance rose by about 5 percent, marking the highest level in the last six months. At the same time, shares of New India Assurance Company rose by about 2 percent. What Is Third Party Insurance? Motor third-party insurance compensates for damages to a third party in a road accident, covering expenses if a person is injured or their property damaged by your vehicle. This insurance is mandatory under the Motor Vehicle Act, 1988, ensuring that the insurance company covers the costs if someone else is harmed by your vehicle. There has been no change in the premium for the last three to four years, despite various uncertainties in the sector. Experts believe that a 20 percent premium increase could enhance the performance of insurance companies and provide relief to the sector. For the financial year 2024-25, IRDAI has outlined the proposed increases based on engine capacity (cc) for private vehicles, including cars and two-wheelers. Private vehicles mainly include private cars and two-wheelers. IRDAI determines the premium based on engine capacity (cc). The following is the estimated hike based on current rates and the proposed 18–25 percent increase for the financial year 2024–25. The current premium for private cars up to 1000 cc is Rs 2,094. With an 18% increase, it will rise to Rs 2,471, and a 25% hike will raise it to Rs 2,618. For cars with engine capacity between 1000 cc and 1500 cc, the current premium is Rs 3,416. An 18% increase will take it to Rs 4,031, while a 25% hike will raise it to Rs 4,270. For cars above 1500 cc, the current premium is Rs 7,897. With an 18% hike, it will become Rs 9,318, and with a 25% increase, it will reach Rs 9,871. In the case of two-wheelers, the premium for bikes up to 75 cc is currently Rs 538. An 18% increase will make it Rs 635, while a 25% hike will raise it to Rs 673. For bikes between 75 cc and 150 cc, the current premium stands at Rs 720. An 18% rise will increase it to Rs 850, and a 25% hike will bring it to Rs 900. For bikes between 150 cc and 350 cc, the premium is Rs 1,366. An 18% hike will take it to Rs 1,612, while a 25% increase will raise it to Rs 1,708. For bikes above 350 cc, the premium is currently Rs 2,804. With an 18% hike, it will go up to Rs 3,309, and a 25% increase will raise it to Rs 3,505. First Published: June 06, 2025, 19:23 IST
Time of India
3 days ago
- Business
- Time of India
Road ministry to monitor impact of projects under Bharatmala Pariyojana
The Road Transport Ministry will monitor the impact of highway projects. This includes economic, logistical, and social factors. Environmental effects and road safety are also key. The Bharatmala Pariyojana aims to improve connectivity. It also seeks to reduce travel time and logistics costs. Projects covering 26,425 km have been awarded. 18,714 km has been constructed so far. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The ministry of road transport and highways MoRTH ) will now monitor the economic, logistics, social and environmental impact as well as road safety and user experience of all capacity augmentation projects including construction of national highways , expressways and corridors under the Bharatmala Pariyojana - a letter to all state governments and union territories and top officials of its affiliate departments, the ministry said it has finalised the mechanism for monitoring outcome parameters of all capacity augmentation projects, including projects under the Bharatmala Pariyojana I, to be measured periodically at different five outcome parameters for impact assessment include impact on macro economic indicators, improvement in operational efficiency and connectivity including reduction in distance and time of travel, impact on social metrics, impact on environment including improvement in fuel efficiency and improvement in road quality and riding experience including reduction in accidents, the letter per the letter, the outcome parameters for Bharatmala Pariyojana include reduction in time of travel, fuel efficiency, expenditure reduction, comfort in riding and user government, in 2017, approved the Bharatmala Pariyojana covering a length of 34,800 km to improve connectivity and reduce logistic cost in the country. As on October 31, 2024, projects covering a total length of 26,425 km have been awarded and 18,714 km has been constructed with a total expenditure up to Rs .4.72 lakh crore up to November 30, Pariyojana is envisaged to improve the logistics efficiency and connectivity in the country including connectivity to tribal, aspirational and left-wing extremist (LWE) affected districts while reducing accidents on these highways ensuring safer transportation development of high-speed corridors will also reduce the travel time substantially between key economic centers.
