The new financial year has brought with it a little more squeeze in the pockets of car owners. New IRDA norms have allowed certain changes in the commission and remuneration rates of insurance agents. It is widely expected to make car insurance providers to revise their car insurance premiums. This is after the rework of the costing with regards to commission and rewards and such a cost will be to be borne by the consumer.
Moderate premium hike The good news is that the IRDA-mandated premium change will be restricted to 5 % increase or decrease for existing products and add-ons or a maximum of Rs 50 for every Rs 1,000 of premium paid.
Hike in third party insurance premiums For auto insurance, the other proposed hike in third party insurance premium is also due to kick in from April 1 and will act as a double whammy to consumers. According to that, for small cars up to 1,000 cc, there will be no change in third party insurance premiums. Cars and SUVs in the 1,000-1,500 cc category and above 1,500 cc, there will be hike in third party premiums, with larger increase in the latter category. So, if you are renewing your motor insurance policy anytime soon, expect to pay more in insurance premiums, especially if you have a bigger car.