MoRTH revises third party premium rules

The Ministry of Road Transport and Highways (MoRTH) has issued a draft notification proposing Motor Third Party Premium and Liability Rules for the Financial Year 2023-24, in consultation with the Insurance Regulatory and Development Authority of India (IRDAI).

In the said rules, the base premium for third-party insurance for unlimited liability has been proposed for various classes of vehicles.

Following discounts in premium are also proposed to be allowed in the said rules:

A discount of 15% has been proposed for educational institution buses, a discount of 50% has been proposed for a private car registered as Vintage Car, whereas a doscount of 15% and 7.5% has been proposed for electric vehicles and hybrid vehicles, respectively. Further, a reduction of about 6.5% in the base premium rate has been proposed for 3-wheeled passenger carrying vehicles.