Skip to main content


Owning a vehicle would now pinch pockets more, with third-party motor insurance premiums set to rise for two-wheelers, private cars and heavy load carriers from tomorrow. "It is observed that the cost inflation index (CII) has increased by 9.05 per cent over the previous year, i.e. from 939 in FY 2013-14 to 1024 in FY 2014-15. "..the Authority hereby notifies the premium rates applicable to Motor Third Party Liability Insurance covers with effect from April 1, 2015," said Insurance Regulatory and Development Authority of India (IRDAI) in a notification. The premiums are being revised after a gap of three years.
Owners having third-party cover for private cars of 1,000-cc capacity would now have to pay premiums of Rs 1,468 from Rs 784, those exceeding 1,000 cc but below 1,500 cc will attract premium of Rs 1,598 (from Rs 925) and those above 1,500 cc at Rs 4,931 (from Rs 2,853). "Motor Third Party Liability premiums are increasing but at the same time insurance companies are still losing money on the portfolio. "In a free market scenario...each insurer should be free to price the product as per their risk perception. That will ensure that insurers who are committed to providing good service in this portfolio have an opportunity and incentive to differentiate their services which no one may be willing to do in a fixed price, loss-making scenario," said Pavan Dhingra, Director Prudent Insurance Brokers. The third-party cover for two-wheelers of up to 150 cc to 350 cc capacity would attract premium of Rs 554 from the current Rs 350 and those exceeding 350 cc would cost of Rs 884 as against Rs 680. The general insurance industry had favoured a hike in the third party motor premium to the tune of 40-50 per cent against a steeper increase proposed by regulator IRDA. The regulator had on March 9 proposed a steep increase in the third-party premium, ranging between 14 and 108 per cent from April 1. This is on top of the 9-20 per cent hike already effected across vehicle categories for this fiscal.
It is mandatory to for a vehicle owner to obtain third-party insurance to provide insurance cover to others in case of injury or loss of life.


Popular posts from this blog


The Aditya Birla group has entered the top valuation league with a market cap of over USD 50 billion post listing of financial services arm Aditya Birla Capital (ABCL), but Tatas remain on top with over USD 132 billion.
The combined market valuation of the Kumar Mangalam Birla-led listed companies stood at Rs 3,42,354.87 crore (USD 53.5 billion) at the end of Friday's trade.
Among various listed companies of the group, UltraTech Cement's valuation stood at Rs 1,10,097.70 crore at the end of Friday's trade while that of Grasim Industries was Rs 76,881.73 crore.
The newly-listed Aditya Birla Capital's market capitalisation was over Rs 55,000 crore, Hindalco (Rs 54,607.09 crore), Idea Cellular (Rs 32,064.91 crore), Aditya Birla Fashion and Retail (Rs 13,155.73 crore) and Aditya Birla Money (Rs 547.71 crore).
Among Indian conglomerates, the Tata group remains on the top in terms of total valuation of listed firms with about Rs 8,46,567 crore (USD 132.5 billion).
There are 29 pu…


Leading businessman Anil Ambani today said more than creating wealth for himself, his father late Dhirubhai Ambani derived greater happiness from creating wealth for masses. "If you ever asked what part of being an entrepreneur he (late Ambani) enjoyed the most, he would say, 'I enjoy creating wealth. But what I enjoy even more is in creating wealth for the people of the country,'" the Anil Ambani Group chairman said while addressing an industry event here. It can be noted that the late Ambani, who had a humble beginning as a primary school teacher's son in Gujarat, is regarded as the father of capital markets and the equity cult, who made millions of investors millionaires with the IPO of Reliance Textile Industries in 1977. A person who had put in Rs 1,000 then in the IPO is worth over a million today, going by the price of RIL. Stating that the launch of Kothari Pioneer Mutual Fund, which was country's first private MF in 1993, was his (Dhirubhai's) id…


Gripped by fear psychosis due to geo-political aftershocks, key stock market indices were on a sticky wicket for the fifth day today as both Sensex and Nifty fell over 1 per cent to hit their one-month lows. The sharp plunge left investors poorer by over Rs 95,000 crore as the market cap stood at Rs 1,27,08,846 crore. Risk appetite took a hit after the Economic Survey said achieving the high end of the 6.75-7.5 per cent growth projected previously will be difficult. This is markets' first weekly fall in six.
Weakness in the rupee against the American currency and lacklustre global shares dragged down the indices, too. The BSE 30-share Sensex remained in the negative zone and settled down 317.74 points, or 1.01 per cent, at 31,213.59, its weakest closing since July 4. The index had tumbled 794.08 points in the last four sessions. The NSE Nifty after cracking the 9,700-mark to hit a low of 9,685.55, finally settled lower 109.45 points, or 1.11 per cent…