Vehicle Insurance Premiums To Banking Services: Here’s What’s Going To Be Costlier From June 1

Vehicle insurance premiums and home loans are set to be costlier from June 1, 2022

As we enter the month of June, a few services are going to get costlier. This will happen at a time when inflation has risen dramatically due to a rise in input costs. The coronavirus pandemic and the geopolitical situation have only exacerbated the situation. How will these changes affect us? If you own a vehicle or are planning to buy a new one, then the insurance premium is set to rise from June 1. Besides, a few banks have announced changes in some categories of services.

Here’s a list of those changes and how they will impact:

Insurance Premiums

Last week, the Ministry of Road Transport and Highways (MoRTH) announced it has increased the third-party motor insurance premium for various categories of vehicles. It said the new rates will come into effect from June 1.

This is what the revised rates will be:

— Private cars with an engine capacity of 1,000cc will attract Rs 2,094 instead of Rs 2,072.

— Private cars with engine capacity 1,000cc-1,500cc will attract Rs 3,416 compared to Rs 3,221.

— However, car owners above 1,500 cc will see a drop in premium from Rs 7,897 to Rs 7,890.

— Two-wheelers over 150cc but less than 350cc will attract a premium of Rs 1,366.

— For two-wheelers above 350cc, the revised premium will be Rs 2,804.

— However, hybrid electric vehicles will get a discount of 7.5 percent on insurance premiums.

— Private e-vehicles with a power output capacity of less than 30 KW will be charged Rs 1,780.

— Those between 30KW and 65KW will be charged Rs 2,904 for third-party insurance.

Banking Services

— SBI has increased its home loan lending rate by 40 basis points to 7.05 percent.

— Axis Bank has announced it is increasing the service charges for salary and savings accounts with effect from June 1. It has also revised the average monthly balance requirement to Rs 25,000 from Rs 15,000.

These banking rules have been changed after the RBI hiked the policy rates to tame inflation in early May. Financial experts expect more rate hikes this month.