Vehicles to become expensive from June 1, insurance premium set to hike
Business

Vehicles to become expensive from June 1, insurance premium set to hike

By Jessica

The Ministry of Road Transport and Highways has issued a notification announcing that the prices of cars in the Indian market will be increased from June 1. The announcement came from the ministry instead of the Insurance Regulatory and Development Authority of India (IRDAI).  Along with the car prices, the different categories of vehicles will also see a hike in third-party insurance premiums. The increased car prices will increase the trouble for OEMs in India already struggling with chip crunch and raw material shortage.

Motorcycles in the Indian market will witness a 15% premium hike. However, the hike only affects bikes over 150 cc in the Indian market, such as Bajaj Pulsar, KTM RC 390, Royal Enfield Bullet and many others in the segment.

Making things harder for the middle-class of the country, the masses will have to pay 17 per cent more insurance premium on a new two-wheeler in India. Combined with the recent price hikes by the manufacturers the hike will add to the struggles of people.

Also read: Hyundai recalls over 2 lakh cars in US and Singapore for exploding seat belt parts

Moving on, private cars falling in the 1000 cc to 1500 cc segment will see a 6 per cent hike in the third-party insurance premium. The surge, when combined with recent manufacturer price hikes, will exacerbate people’s difficulties.

Adding to it, a third party premium for a new private car will be increased by 23% for all the cars with engines up to 1000 cc. Moreover, new cars with engines between 1000 cc to 1500 cc will witness an increase of 11 per cent in the third party insurance premiums.

At the start of the year, multiple major OEMs like Maruti Suzuki, Toyota, Mahindra and Tata had increased the prices of their model line up owing to the shortage of raw materials. Moreover, the prices of two-wheelers in the Indian market also increased during the first quarter of the year.

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