It was last month when the Insurance Regulatory and Development Authority of India (IRDAI) proposed a hike in third-party insurance premiums for cars. The proposal was sent to stakeholders for comments and the final verdict is now in. From June 16, 2019, the rise in insurance premiums will come into effect. The increased figures will stay valid until the end of this current fiscal.

What are those numbers? Up until now, cars with an engine size of up to 1,000cc attracted an insurance premium of Rs 1,850. That figure will go up by 12 per cent and become Rs 2,072. IRDAI’s proposal was Rs 2,120. This will affect owners of cars such as the Maruti Suzuki Alto, Renault Kwid and the Datsun Redi-Go.

The next category covers models which have engines ranging between 1,000cc and 1,500. Those will attract a premium of Rs 3,221, an increase of just over 12.5 per cent. As was the case in the previous category, the original proposal was higher at Rs 3,300. A wide range of cars fall under this category. The list includes everything from the Hyundai Santro, Datsun GO, Maruti Suzuki Swift to the Tata Nexon, Ford EcoSport and the Mahindra XUV300.

So, the final figures aren’t as high as what IRDAI had in mind. That’s some relief. But the real sigh of contentment will come from those consumers who own cars with engines above 1,500cc. As proposed, the third-party insurance premium will not change and will stay at Rs 7,890. In this category, models like the Toyota Fortuner, Honda Civic, Skoda Superb and Volkswagen Passat come in.

In a first, IRDAI has also included motor insurance for electric vehicles. The rates for zero-emissions models are linked directly to the motor power and still are noticeably lower than those of vehicles with internal combustion engines. As an incentive, a discount of 15 per cent will be given on third-party insurance premium rates for private electric cars.