Saar: While premiums for personal four-wheels get a cut by up to 10 per cent, taxis get a cut by 17 per cent.

The Insurance Regulatory and Development Authority of India (IRDAI) has blessed car owners with some good news. When compared year-on-year, it has slashed insurance premium rates for personal cars and cabs by up to 17 per cent. Good news isn’t it?! Here’s the bifurcation of the lot.

For personal cars, with an engine below 1,000cc (1.0-litre), the insurance premium has received a cut of 10 per cent. That has brought the figure down to Rs 1,850. Cars falling in the bracket will include the Renault Kwid, Hyundai Eon, Maruti Suzuki Alto and the Datsun redi-GO. For sedans with engines ranging between 1,000cc to 1,500cc (1.0-litre to 1.5-litre), the premium has been reduced by 8.5 per cent. So, the basic premium will top-out at Rs 2,863. Cars like the Maruti Suzuki Dzire, Hyundai Xcent, Volkswagen Ameo and the Toyota Platinum Etios will fall into this category.

Don’t worry SUV owners as the same premium cut of 8.5 per cent has been applied to SUVs with engines greater than 1,500cc as well. That equates to a basic insurance premium of Rs 7,890, which is not bad at all. The vehicles which will fall into this category include the Mahindra XUV500, Hyundai Tucson, Ford Endeavour and the Volkswagen Tiguan.

All the revised premium rates mentioned above are applicable to third-party motor insurance companies. Of course, if you need more peace-of-mind, you will have have to spend more to purchase premium insurance products like zero depreciation. What do you make of this move from the centralised body? Let us know in the comments below.

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