EV Prices To Go Up as Govt Hikes Insurance Rates From Next Week; See Latest Price

The central government has recently notified the base premium for third party insurance for unlimited liability for various classes of vehicles, including private cars, two wheelers and goods carriages — driven both by fuel and electricity. This may result in the price hike of electric vehicles and petrol and diesel-driven cars, as the insurance rates have been hiked. In a notification issued by the ministry of road transport and highway, it has been mentioned that the new charges will be effective from June 1, 2022.

According to the ministry’s notification, a discount of 7.5 per cent on the premium shall be allowed for hybrid electric vehicles. However, EV third party insurance rates have also been hiked.

Here are the Electric Vehicle Insurance Rates Effective From June 1, 2022

1. Private Cars: For private four wheeler electric cars whose power output is not more than 30 KW, the revised insurance rates will be Rs 1,780. If an EV has a power output exceeding 30 KW but not more than 65 KW, the new insurance rates have been fixed at Rs 2,904. For an electric vehicle, which is a private car and has a power output exceeding 65 KW, the owners will have to pay an insurance of Rs 6,712.

2. Two Wheelers: EV two wheelers with a power output of less than3 KW will now attract an insurance premium of Rs 457, while those with power outputs over 3 KW but not exceeding 7 KW will attract an insurance premium of Rs 607. On the other had, owners of two wheeler EVs with power outputs exceeding 7 KW but not exceeding 16 KW will have to pay a premium of Rs 1,161. For those with EV powers exceeding 16 KW, the premium will be Rs 2,383.

3. EV Long Term Premium for Four Wheelers: For a new private car, the three year single premium for vehicles not exceeding 30 KW will be Rs 5,543, while vehicles with power outputs exceeding 30 KW but not exceeding 65 KW will attract premiums of Rs 9,044. For vehicles exceeding 65 KW, the premium will be Rs 20,907.

4. EV Long Term Premium for Two Wheelers: For a new private car, the five year single premium for vehicles not exceeding 3 KW will be Rs 2,466, while vehicles with power outputs exceeding 3 KW but not exceeding 7 KW will attract premiums of Rs 3,243. For vehicles exceeding 7 KW but not exceeding 16 KW, the premium will be Rs 6,260, while two wheelers with power output over 16 KW will attract a premium of Rs 12,849.

The third-party insurance cover is for other than own damage and is mandatory along with the own damage cover that a vehicle owner has to purchase. This insurance cover is for any collateral damage to a third party, generally, a human being, caused due to a road accident.

Before this, third party insurance rates were notified by the Insurance Regulatory and Development Authority of India (IRDAI). This is the first time that the road transport ministry has released the third  party insurance rates in consultation with the insurance regulator.

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