According to a draft notification, the Ministry of Road Transport and Highways has suggested no increase for third party motor insurance, which may be an asset for car owners.

The ministry has recommended cuts in several vehicle classes for the base rate for third party insurance for unlimited liability in its notification, which could be a shock to the insurance sector.

Buses used by educational institutions would receive a 15% discount, and private cars that are registered as historic vehicles would receive a 50% discount. For electric and hybrid electric vehicles, discounts of 15% and 7.5%, respectively, have been suggested.

Additionally, it has been suggested that the base premium rate for three-wheeled passenger carrying vehicles be reduced by around 6.5%.

Compared to the existing rate of Rs. 2,539, the planned basic premium for auto-rickshaws in 2023–24 is Rs. 2,371, a 6.8% decrease.

In comparison to the present pricing of Rs. 1,648 for e-rickshaws, the proposed base premium is Rs. 1,539. The draft announcement states that the third-party premium rates for popular and affordable cars continue to be Rs 2,094 and Rs 7,897, respectively, for SUVs.

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