Exposure Draft on Revision in Premium Rates for Motor Third Party Insurance Cover for the Financial Year 2019-20

May 22, 2019 | by Avantis RegTech Legal Research Team


The Insurance Regulatory and Development Authority of India (IRDAI) on May 20, 2019, has revised the premium rates applicable to Motor Third Party (TP) Liability Insurance cover for the financial year 2019-20. With reference to the Order drawn vide Notification No. IRDA/NL/ORD/MOTP/051/03/2019 dated March 28, 2019, the Motor Third-Party Premium rates for the year 2019-20 (ending March 31, 2020) for various categories of vehicles, which shall come into force from the date to be notified, have been arrived such as:

1.The data provided by the Insurance Information Bureau of India (IIBI) has been used for arriving at the Motor TP premium rates.

2.The ultimate claims cost for each accident year has been estimated using the actuarial technique of Basic Chain Ladder Method applied to cumulative paid claims data.

3.As for the Vintage Cars segment, there is no substantial data relating to past experience. A discounted price of 50% of the proposed rate based on the erstwhile Indian Motor Tariff (IMT) has been proposed for those private cars identified as Vintage Cars by the Vintage and Classic Car Club of India.

4.A discount of 15%, on Motor TP premium rates for Electric Private Cars and Electric Two wheelers, is proposed. This will be an incentive to use environment-friendly vehicles.

All stakeholders are invited to provide their comments on this exposure draft. The comments should reach the Authority by e-mail addressed to mail to [email protected] with a copy to [email protected], on or before May 29 2019.

[Notification No/ IRDA/NL/MTP/2019-20/EXDRF]

Click here to download the Notification.

 


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