March 28, 2025
- In June 2023, the Indian government established a new set of premium rates for the financial year 2023-24 for third-party motor insurance. These rates apply to various vehicle categories. According to existing regulations, it is required for every vehicle owner to hold a third-party motor insurance policy. This kind of policy can offer financial protection to the vehicle owner if their vehicle is involved in an accident that damages a third party.
- The new set of rates has been announced in a notification by the Ministry of Road Transport and Highways (MoRTH). The ministry formulated these revised rates after discussions with the IRDAI (Insurance Regulatory and Development Authority of India). Let us explore the new proposed rates through some of the tables provided in the draft.
Proposed premium rates for private vehicles, goods carrying vehicles, and trailers.
The following table presents the new premium rates for motorcycle insurance, automobile insurance, and specific other vehicle insurance policies:
| Category | Vehicle Type | Rates (in Rupees) |
| Private Cars | ||
| Not exceeding 1000 cc | 2,094 | |
| Exceeding 1000 cc but not exceeding 1500 cc | 3,416 | |
| Exceeding 1500 cc | 7,897 | |
| Two-wheelers | ||
| Not exceeding 75 cc | 538 | |
| Exceeding 75 cc but not more than 150 cc | 714 | |
| Exceeding 150 cc but not more than 350 cc | 1,366 | |
| Exceeding 350 cc | 2,804 | |
| A1 | Goods Carrying Commercial Vehicles (excluding three-wheelers) | |
| GVW not exceeding 7500 kgs | 16,049 | |
| Exceeding 7500 kgs but not more than 12000 kgs | 27,186 | |
| Exceeding 12000 kgs but not more than 20000 kgs | 35,313 | |
| Exceeding 20000 kgs but not more than 40000 kgs | 43,950 | |
| Exceeding 40000 kgs | 44,242 | |
| A2 | Goods Carrying Motorized 3- Wheelers and Motorized Pedal Cycles (applicable for all public Carriers except e-carts) | 4,492 |
| A3 | Goods Carrying Motorized 3- Wheelers and Motorized Pedal Cycles (applicable for all private Carriers except e-carts) | 3,922 |
| B | Trailers | |
| Agricultural Tractors (applicable for those with up to 6 HP) | 910 | |
| Other trailers including Miscellaneous & Special Vehicle Types (Class-C). ( | 2,485 |
Proposed premium rates for three-year and five-year bike and car insurance plans.
Regarding long-term bike and car insurance options lasting three to five years, below are the proposed premium rates:
| Category of Vehicle | Rates (in Rupees) |
| New private car – Three-year single premium | |
| Not exceeding 1000 cc | 6,521 |
| Exceeding 1000 cc but not more than 1500 cc | 10,640 |
| Exceeding 1500 cc | 24,596 |
| New two-wheeler – Five-year single premium | |
| Not exceeding 75 cc | 2,901 |
| Exceeding 75 cc but not more than 150 cc | 3,851 |
| Exceeding 150 cc but not more than 350 cc | 7,365 |
| Exceeding 350 cc | 15,117 |
New proposed premium rates for electric vehicles.
With the popularity of electric vehicles rising, the demand for electric vehicle insurance is also growing. If you own an electric vehicle, here are the new premium rates you may need to follow:
| Category | Type of Vehicle | Rates (in Rupees) |
| Private cars | ||
| Not exceeding 30 KW | 1,789 | |
| Exceeding 30 KW but not exceeding 65 KW | 2,904 | |
| Exceeding 65 KW | 6,712 | |
| Private two-wheelers | ||
| Not exceeding 3 KW | 457 | |
| Exceeding 3 KW but not exceeding 7 KW | 607 | |
| Exceeding 7 KW but not exceeding 16 KW | 1,161 | |
| Exceeding 16 KW | 2,383 | |
| A1 | Goods carrying commercial vehicles (excluding three-wheelers) | |
| GVW not exceeding 7500 kgs | 13,642 | |
| Exceeding 7500 kgs but not more than 12000 kgs | 23,108 | |
| Exceeding 12000 kgs but not more than 20000 kgs | 30,016 | |
| Exceeding 20000 kgs but not more than 40000 kgs | 37,357 | |
| Exceeding 40000 kgs | 37,606 | |
| A2 | Goods Carrying Motorised Three-Wheelers And Motorised Pedal Cycles – Public Carriers | |
| e-carts | 3,139 | |
| A3 | Goods carrying motorised three-wheelers and motorised pedal cycles – Private carriers | |
| e-carts | 3,211 |
Also Read: All You Need to Understand About IRDAI
Suggested premium rates for long-term private electric vehicle insurance
Individuals may choose an electric vehicle insurance policy that lasts for three to five years. Below are the suggested premium rates for this:
| Category of Vehicles | Rates (in Rupees) |
| New private car – Three-year single premium | |
| Not exceeding 30 KW | 5,543 |
| Exceeding 30 KW but not exceeding 65 KW | 9,044 |
| Exceeding 65 KW | 20,097 |
| New two-wheeler – Five-year single premium | |
| Not exceeding 3 KW | 2,466 |
| Exceeding 3 KW but not exceeding 7 KW | 3,273 |
| Exceeding 7 KW but not exceeding 16 KW | 6,260 |
| Exceeding 16 KW | 12,849 |
- These represent some of the newly suggested motor insurance premium rates. Keep in mind that these are applicable only to third-party plans. The premium for comprehensive plans might differ due to various factors. *
- To calculate the premium for a comprehensive plan, utilize a vehicle insurance calculator. It gives you a premium estimate based on the details you input.
- In addition to those listed in the tables above, motor insurance premium rates have also been proposed for other vehicle categories. You can check the website of the Ministry of Road Transport and Highways for comprehensive information on this.
FAQs
What is the tariff code for a motor vehicle?
- The tariff code for motor vehicles changes according to the classification under HS Code (Harmonized System Code). For instance, passenger cars generally fall under HS Code 8703, whereas commercial vehicles are categorized under HS Code 8704.
What is the tariff number for a motor?
- The tariff number for electric motors and engines is typically categorized under HS Code 8501, which encompasses electric motors and generators. The exact number is contingent upon the motor type and power capacity.
What is the tariff rate of insurance?
- The tariff rate for motor insurance relies on the type of vehicle, coverage, and insurer. For third-party insurance in India, rates are overseen by the IRDAI, while comprehensive policies feature variable premiums based on elements such as vehicle type, age, and location.
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