The Ministry of Road Transport and Highways (MoRTH) has issued a draft notification G.S.R 441(E) dated June 14, 2023, proposing Motor Third Party Premium and Liability Rules for the FY2023-24, in consultation with Insurance Regulatory and Development Authority of India (IRDAI).
As per 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 given rules, a base premium for third-party insurance for unlimited liability has been proposed for various classes of vehicles, according to a government release.
The release further mentions the following discounts in premium, which are also proposed to be allowed in the said rules:
• A discount of 15 percent has been proposed for educational institution buses
• A discount of 50 percent has been proposed for a private car registered as vintage cars
• A discount of 15 percent and 7.5 percent has been proposed for electric vehicles and hybrid electric vehicles, respectively
Also, a reduction of about 6.5 percent in the base premium rate has been proposed for three-wheeled passenger-carrying vehicles.
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