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BRACE FOR INCREASE IN TPL PREMIUMS FOR MOTOR VEHICLES - AGAIN IN APR'16

Discussion in 'Insurance & Loan Reviews' started by ghodlur, Feb 14, 2014.

  1. asimpleson

    asimpleson Esperto

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    2,998
    Heptanesia
    Linea 1.3
    That could also translate to more husbands buying cars in women's names in their family. Mostly wife or daughters. But it is true that impacts by and large are smaller, not to say that there haven't been serious accidents by women drivers.
    ghodlur likes this.
  2. ghodlur

    ghodlur Esperto

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    2,316
    Thane
    One more shocker proposal in the offing.

    There is a proposal in the new Road Safety bill which is going to replace the Motor Vehicle Act about capping the maximum payout of Rs 15 L to the victim involved in accident. The victim's beneficiary is not going to get more than 15L in payout. According to current norms of the Motor Vehicles Act, there is no limit on the liability of insurers in motor third-party accidents. Due to this, a victim can claim any amount in these cases and if the insurer refuses to pay, they can approach the court. Till now it was unlimited compensation as decided by the Motor tribunal court and based on the earning capability, age and dependants of the victim. Going forward it is proposed that if vehicle owner needs unlimited liability, they will have to pay for it which culminates is higher premium. Unlimited TPL liability will be offered as add on cover too.

    The Third Party liability for damage to property till now is Rs 7.5L.

    http://www.business-standard.com/ar...-be-limited-at-rs-15-lakh-115022401384_1.html

    http://www.business-standard.com/ar...tion-liability-at-15-lakh-115022401413_1.html
  3. ghodlur

    ghodlur Esperto

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    The final rates for the TP premium is released by IRDA as follows:

    The document attached shows the details further.

    For Punto and Linea the applicable TP liability premiums will be Rs 1598.

    Attached Files:

    asimpleson likes this.
  4. ghodlur

    ghodlur Esperto

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    2,316
    Thane
    The increase in the Third party liability premiums have been quite sharp this time. I have attached the IRDA order pdf document for reference. Also below is the snapshot of the key vehicle categories. The first pic is for 2015-16 rates and the second pic is for 2016-17 rates.

    So for Linea and Punto the increase in the TPL premium rates would be Rs 639/-. Service tax will now be at 15% post budget. So my guess is the increase will be approx Rs 700/- for the premium only. Add other charges of rs 300/- So overall will be rs 1000/-.

    TPL rates for 2015-16.png

    TPL rates for 2016-17.png

    Attached Files:

    limraj likes this.
  5. limraj

    limraj Superiore

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    914
    Trivandrum
    Linea 1.3
    Those who have already renewed for a policy becoming active on or after 01 Apr will also have to pay the additional amount.
    I renewed the insurance in Jan this year. So will be paying the new premium in next year Jan. Till then fine.
  6. ghodlur

    ghodlur Esperto

    Messages:
    2,316
    Thane
    I tried to renew my 2 wheeler insurance which expires on 7th April 2016 and the premium quote seen on the website is already with the hiked TPL premiums. Will be having a chat with the Insurance co rep before renewing if it was possible to renew with old TPL rates.

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