According to the announcement of the Ministry of Road Transport and Highways, vehicles including cars and two-wheelers are going to become more expensive in India from June 1.
The Ministry of Road Transport and Highways has issued a notification announcing that the prices of third-party insurance premiums in the Indian market will be increased from June 1. The announcement was made by the Ministry rather than the Insurance Regulatory and Development Authority of India (IRDAI), India’s nodal body for insurance companies. The increase in third-party insurance will increase the prices of all vehicles, including four-wheelers and two-wheelers, in India. Increased vehicle prices will create trouble for OEMs already battling chip shortage and raw material crunch in India.
Here’s how much a third-party insurance price hike is expected for different vehicle categories-
| Category | Price Hike |
| Premium bikes above 150 cc | 15% |
| Cars between 1000-1500 cc | 6% |
| Cars upto 1000 cc | 23% |
| Scooters and motorcycles below 150 cc | 17% |
As per the notification, the premium for motorcycles in the Indian market will be hiked by 15%. However, the hike only affects bikes over 150cc in the Indian market like Bajaj Pulsar, KTM RC 390, Royal Enfield Bullet, and many more. Making things difficult for the country’s middle class, the public will have to pay 17 percent more of the insurance premium on a new two-wheeler in India. The recent price hike by the manufacturers, this hike will add to the struggle of the people.
Read More: Buy Maruti Ertiga at bike price, get free home delivery, and pay even in installments.
Going forward, private cars falling in the 1000 cc to 1500 cc segment will see a 6 percent hike in third-party insurance premiums. With the recent hike in manufacturer prices, this boom will add to the woes of the people.
Additionally, a third-party premium for a new personal car will be increased by 23% for all cars with engines up to 1000 cc. In addition, there will be an 11 percent increase in third-party insurance premiums for new cars with engines from 1000 cc to 1500 cc.
At the beginning of the year, several leading OEMs like Maruti Suzuki, Toyota, Mahindra, and Tata increased the prices of their model line-up due to a shortage of raw materials. Besides this, the prices of two-wheelers in the Indian market also increased during the first quarter of the year.
