- Third-party premiums increased
- Could see a drop in overall sales
The third-party insurance charges for motorcycles and scooters will get expensive from today. The government has raised the base premium rates that will be effective from today.
The third-party premium for two-wheelers under 75cc has been kept at Rs 538, between 75cc to 150cc at Rs 714, and between 150cc to 350cc at Rs 1,366. All the motorcycles and scooters above 350cc will carry a premium of Rs 2,804.
The five-year premiums will also see some drastic changes. For two-wheelers up to 75cc, the premium is set at Rs 2,901, whereas it has been kept at Rs 3,851 for vehicles between 75cc and 150cc. Further, it will cost Rs 7,365 and Rs 15,117 for two-wheelers between 150cc and 350cc and above 350cc, respectively.
These increases in third-party premiums are bound to affect the overall sales of motorcycles and scooters. The industry hasn’t been growing as it was expected to and now with these increases, the cost of acquiring a motorcycle or a scooter will go up considerably. This may see buyers push their purchase by a few months.
