Insurance Board reduces insurance premium for private vehicles
Insurance Board has reduced the insurance premium rates for private vehicles.
According to the Board, the premium rate for private vehicles has been slashed by 25 per cent for vehicles valued at less than Rs 2 million and those valued over Rs 2 million will be charged 20 per cent less premium compared to the existing rate. “The new premium rate will be applicable from February 13,” the insurance market regulator said, adding that the reduced premium rate is only applicable to insurance policies that cover loss and damage risks. “It will not be applicable to third party liabilities and vehicles covered under risks group policy.”
Currently, a private vehicle’s premium ranges between 1.6 per cent and 2 per cent of the selling price based on the age of the vehicle and engine capacity.
Likewise, for older vehicles used for more than 10 years, an additional 10 per cent premium is charged.