Safeguarding your ride: Understanding third-party car insurance price lists for 2024

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18 Jan 2024

Decoding 2024 third-party car rates

As per the Motor Vehicles Act of 1988, every car owner must mandatorily maintain valid car insurance. To maintain the legal standards third-party car insurance is enough. Kotak General Insurance is a noteworthy name in this category.

The Ministry of Road Transport has proposed in consultation with the IRDAI that the third-party car insurance price will remain unaltered in the FY 2023-’24. You must note that third-party cover is available for both private and commercial vehicles.

Working strategy

Third-party car insurance is a car plan which the vehicle owner must mandatorily purchase to act as a protective shield against third-party claims due to any accidental circumstance involving your vehicle. The scale of the accident is not a factor here. However, this is exclusively crafted for the third party and the policyholder does not benefit from it.

Third-party car insurance rates

This article will highlight the prices of third-party car insurance rates. It is determined depending on the size and capacity of the concerned vehicle.

Private car third-party premium rates

VEHICLE TYPE (PRIVATE CARS)

RATES (INR)

Not exceeding 1000 cc

2094

Over 1000 cc but within 1500 cc

3416

Over 1500 cc

7897

New private car: 3-year single premium rates

VEHICLE CATEGORY (PRIVATE CAR)

RATES (INR)

Not exceeding 1000 cc

6521

Over 1000 cc but within 1500 cc

10640

Over 1500 cc

24596

Third-party premium rates for private electric vehicles

VEHICLE CATEGORY (PRIVATE CAR)

RATES (INR)

Within 30 KW

1780

Over 30 KW but within 65 KW

2904

Over 65 KW

6712

Three-years single premium rates for private EVs

VEHICLE CATEGORY (PRIVATE CAR)

RATES (INR)

Within 30 KW

5543

Over 30 KW but within 65 KW

9044

Over 65 KW

20907

Proposed discounts

The base premium rates for third-party car insurance are regulated by MoRTH according to Section 147 of the Motor Vehicles Act of 1988. Here, it proposes a base premium for third-party cover with unrestricted liabilities among varied vehicle classes.

According to the information disclosed to the Press Information Bureau issued back on 20 June 2023, the following discounts have been proposed:

  1. A special discount of 15% has been proposed for buses of educational organisations

  2. Any private car registered as a Vintage Car may enjoy a special discount of 50% as per the proposal

  3. A discount of 15% has been proposed for EVs and 7.5% for hybrid EVs

  4. Apart from these, the authorities have also proposed a special reduction of approximately 6.5% in the basic premium rates for three-wheeler passenger-carrying vehicles.

Conclusion

We have shed light on the base premium rates of private vehicles for third-party car insurance. Although the base premium rates remain unaltered, there have been proposals for several other discounts. However, these are only draft notifications and are yet to be finalised. The Ministry is open to suggestions, feedback, and comments from all the stakeholders. These suggestions might lead to evolving something different. It is a matter of time to know what is actually changing or remaining unchanged.

Related blogs

Difference between third party and comprehensive car insurance

Consequences of not having Motor Insurance in India

Risks Covered Under Comprehensive Car Insurance Cover

How To Insure Your Car for Standalone Own Damage In India


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Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.