Rising liability insurance premiums will impact two-wheeler industry: TVS

Raising the auto insurance premium to one-third (TP) would further hamper the two-wheeler industry’s efforts to emerge from tough market conditions, TVS Motor Company said Monday.

The auto industry has been hit by a series of headwinds, leading to a steady rise in prices for two-wheelers, TVS Motor Company Director and CEO KN Radhakrishnan said in a statement.

In addition to the woes of the pandemic, the continued shortage of semiconductor chips, high cost of raw materials and rising fuel prices have impacted demand, he added.

“While the customer continues to struggle with an increase in the cost of ownership, the recently announced rise of Rs 2,200 per vehicle in the cost of liability insurance will further hamper the industry’s efforts to recover from this situation. tough market,” noted Radhakrishnan. .

Besides, a strong domestic industry is the basis for global competitiveness and every effort should be made to have a vibrant local market, he added.

The Ministry of Road Transport and Highways (MoRTH) last week increased the motor third party liability (TP) insurance premium for different categories of vehicles from June 1, a move that is likely to drive up the cost of l car and two-wheeler insurance.

According to the revised tariffs notified by the MoRTH, passenger cars with an engine capacity of 1000cc will attract tariffs of Rs 2094 from Rs 2072 in 2019-20.

Similarly, private cars with an engine capacity between 1,000 cc and 1,500 cc will attract rates of Rs 3,416 against Rs 3,221.

Two-wheelers over 150cc but not exceeding 350cc will attract a premium of Rs 1,366 and for two-wheelers over 350cc the revised premium will be Rs 2,804.

After a two-year moratorium due to the Covid-19 pandemic, the revised TP insurance premium will come into effect from June 1.

Previously, TP rates were notified by the Insurance Regulatory and Development Authority of India (IRDAI). This is the first time that MoRTH has notified TP rates in consultation with the insurance regulator.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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