NEW DELHI : The ministry of road transport and highways (MoRTH) on Tuesday proposed a 15% discount on motor insurance premiums for buses in the service of educational institutions, a move acknowledging the vital role they play in the safe transportation of students.
Additionally, private cars registered as vintage may be eligible for a substantial discount of 50% on their insurance premiums. This proposed discount recognizes the historical and cultural value of vintage cars, aiming to promote their preservation and create a favourable environment for collectors and enthusiasts.
“The proposed discounts for educational institution buses, vintage cars, and environmentally friendly vehicles, along with the reduction in premiums for specific vehicle categories, reflect MoRTH’s commitment to creating an inclusive and equitable motor insurance framework,” the ministry said.
Other proposed discounts include a 15% reduction in premiums for electric vehicles and a 7.5% reduction for hybrid electric vehicles. These discounts align with the government’s commitment to promoting sustainable and eco-friendly transportation options, encouraging the adoption of electric and hybrid vehicles in the country.
Moreover, the draft notification suggests a base premium rate reduction of approximately 6.5% for 3-wheeled passenger carrying vehicles. This reduction aims to provide a more affordable insurance framework for vehicles in this category.
MoRTH and IRDAI have invited stakeholders, including insurance companies and the public, to provide their feedback and suggestions on the proposed discounts within a 30-day period.
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Updated: 20 Jun 2023, 10:50 PM IST
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