Draft notification proposing Motor Third Party Premium and Liability Rules for the Financial Year (FY) 2023-24 in consultation with Insurance Regulatory and Development Authority of India (IRDAI) issued

The Ministry of Road Transport and Highways (MoRTH) issued a draft notification GSR 441(E) dated 06.14.2023, proposing premium and third party liability rules for the financial year (FY) 2023-24, in consultation with the Insurance Regulatory Authority and Development Authority of India (IRDAI).

In line with section 147 of the Motor Vehicles (MV) Act, 1988, MoRTH prescribes the basic premium rates for motor liability insurance from time to time. The basic premium for unlimited liability insurance was proposed in the aforementioned legislation for various vehicle classes.

It is also proposed to allow the following premium discounts in the aforementioned rules:

• A 15% discount has been offered for buses to educational institutions.

• A 50% discount has been offered for a private car registered as an Auto d’Epoca.

• A discount of 15% and 7.5% has been proposed for Electric Vehicles and Hybrid Electric Vehicles respectively.

Furthermore, a reduction of approximately 6.5% of the basic premium for 3-wheeled vehicles for the transport of people has been proposed. Comments and suggestions are invited from all interested parties within a thirty day period.

Click here to see the notice in the Gazette.

****

mjps extension