As per the order of the Hon’ble Supreme Court of India, dated 20th July,2018, IRDAI directed all General insurers (barring the stand-alone health insurers and the specialized insurers) to issue mandatory Long-Term Motor Third Party insurance covers for new cars and new two wheelers (3-year for new cars and 5-year for new two-wheelers) with effect from 1st September, 2018 along with the premium rates to be charged for these policies for the FY 2018-19 vide its circular ref “IRDAI/NL/CIR/MOT/137/08/2018” dated 28th August 2018.
Smt. Nirmala Sitharaman, Union Minister of Finance & Corporate Affairs has informed that The Insurance Regulatory and Development Authority of India (IRDAI) vide order ref” IRDAINL/NL/NTFN/MOTP/91/06/2018 dated 04.06.2019 has changed the Motor Third Party premium rates for private cars and two-wheelers as compared to previous financial year (FY). The details of change in Motor third party premium rates are as under:
| Vehicle Category | Motor TP Premium Rates (Rs.) | |
| 2018-2019 | 2019-2020 | |
| Private Cars | ||
| Not exceeding 1000 cc | 1,850 | 2,072 |
| Exceeding 1000 cc but not exceeding 1500 cc | 2,863 | 3,221 |
| Exceeding 1500 cc | 7,890 | 7,890 |
| Two Wheelers | ||
| Not exceeding 75 cc | 427 | 482 |
| Exceeding 75 cc but not exceeding 150 cc | 720 | 752 |
| Exceeding 150 cc but not exceeding 350 cc | 985 | 1,193 |
| Exceeding 350 cc | 2,323 | 2,323 |
In respect of new cars and new two-wheelers, there is no change in the aforesaid long-term Motor TP premium rates in the FY 2019-20 as compared to FY 2018-19.
