MOTOR PREMIUMS IN INDIA TO RISE BY AT LEAST 33% ON JAN 1

Third-party motor insurance in India will rise by between 33% and 257% on January 1 as a result of the new tariff regime, a paper from the regulator to insurers last week confirmed. The Insurance Regulatory & Development Authority has allowed competition in the third-party sector, although it has not given insurers a completely free hand. For vehicles of 1000cc or less, premiums will rise from Rp500 to Rp670, but for cars with engines above 1,500cc, the third-party liability rate will rise 257% to Rp2,500 a year, compared with the current Rp700, reports Asia Pulse . For motorcycle cover, the rates will rise by between 71% and 226%, with the largest increases reserved for bikes of more than 350cc capacity. Heavier vehicles will see their third-party rates rise by 126% to 150% to between Rp8,000 and Rp9,000. The All India Motor Transport Congress said that commercial vehicles would be hit particularly hard, and claimed that the 150% rate hike was “unjustified”, although no actuarial evidence was provided.