The insurance regulator is ensuring this by modifying the rates for 2017-18, issued three weeks ago, reported The Economic Times.
“The modified ‘premium rates for motor third party liability insurance cover’ will apply retrospectively from April 1,” said an official communiqué from IRDAI.
However, the premium rates for the current fiscal are higher than the previous year.
As per the new list, premium on mid-segment cars (1,000cc – 1,500 cc) has been reduced to Rs 2,863 from Rs 3,132 announced on March 28.
Similarly, the premium for cars with engine capacity of more than 1,500 cc has been brought down to Rs 7,890 from earlier Rs 8,630.
There is no change in cars having an engine capacity of less than 1,000 cc. The premium has been fixed at Rs 2,055.
Similarly, premium has been decreased in case of two- wheelers with an engine of 150 cc and more.
“Premium rates have been reduced for most of the truck categories. The new rate, for instance, in case of ‘goods carrying vehicles public carriers (exceeding 40,000 kg)’ has been reduced to Rs 33,024 from Rs 36,120 notified on March 28,” said IRDAI.
The reduction has also applied to e-rickshaw and other passenger carrying vehicles.
Modification in premium rates follows protest by a section of truckers against the IRDAI’s move to substantially hike insurance rates.