Motor Insurance1 Apr 2024
MoRTH Revises Third-Party Motor Insurance Rates — Impact on Your Premium
Expert analysis and actionable guidance on the latest IRDAI regulation changes affecting your insurance.
What Happened
The Ministry of Road Transport and Highways (MoRTH) revised third-party motor insurance rates via GSR 354(E) dated 28 March 2024. Key changes: Private car TP rates remain stable for most segments, while EVs continue to enjoy 15% discount on TP premium. The new rates are effective from 1 April 2024.
Impact on Policyholders
- Private car TP (up to 1000cc): ₹2,094 — unchanged
- Private car TP (1000-1500cc): ₹3,416 — unchanged
- Private car TP (above 1500cc): ₹7,897 — unchanged
- EV discount on TP: 15% continues — making EVs cheaper to insure
- Two-wheeler TP rates stable across all engine capacities
What You Should Do
- If you own an EV, you already save 15% on TP premium — factor this into purchase decisions
- Compare comprehensive policies — TP is fixed, but OD varies by insurer
- Don't buy TP-only policies for expensive vehicles — comprehensive is better value
- Use the NCB from your previous policy to reduce OD premium
- Consider multi-year TP (3-year for cars, 5-year for bikes) to lock in rates
Expert Analysis — IRDAI Update
“The stability in TP rates is good news for vehicle owners. The real savings come from the 15% EV discount on TP premiums, making electric vehicles even more cost-effective to insure. For comprehensive insurance, focus on comparing OD premiums and add-on costs — that's where the real differences between insurers lie.”
FAQs About This IRDAI Update
Other IRDAI Updates
Confused About This IRDAI Update?
Get clarity on how this regulation affects YOUR insurance. Free consultation.
IRDAI Certified Advisor | POSP Code: IP429834
Last updated: 29 October 2026 | Source: IRDAI, MoRTH | © Paliwal Secure AI