Motor Vehicles (Third Party Insurance Base Premium and Liability) Rules, 2022

Notification issued pertaining to base premium for third party insurance for unlimited liability

The Ministry of Road Transport and Highways, in consultation with the Insurance Regulatory and Development Authority of India, has published Motor Vehicles (Third Party Insurance Base Premium and Liability) Rules, 2022 vide notification dated 25.05.2022. The rules shall come into force on 1st June, 2022.

In the said rules, base premium for third party insurance for unlimited liability  has been notified for  various classes of vehicles. Following discounts in premium are also allowed in the said rules-

• A discount of 15% has been provided for Educational institution buses
• A discounted price of 50% of the premium has been allowed to a private car registered as Vintage Car.
• A discount of about 15 % and 7.5% on the premium has been allowed for Electric and Hybrid Electric Vehicles, respectively.

MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

NOTIFICATION

New Delhi, the 25th May, 2022

G.S.R. 394(E).—Whereas draft rules for Motor Third Party Premium and Liability Rules for the Financial Year 2022-23 were published, as required by sub-section (1) of section 212 of the Motor Vehicle Act, 1988 (59 of 1988), vide notification of the Government of India in the Ministry of Road Transport and Highways, number G.S.R. 215 (E), dated the 17th March, 2022 in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i) inviting objections and suggestions from all persons;

And whereas, copies of the said notification were made available to the public on 21st March, 2022;

And whereas, the objections and suggestions received from the public in respect of the said draft rules have been duly considered by the Central Government;

Now, therefore, in exercise of the powers conferred by sub-section (2) of section 147 of the Motor Vehicles Act, 1988 (59 of 1988), the Central Government in consultation with the Insurance Regulatory and Development Authority of India, hereby makes the following rules, namely:-

1. Short title and commencement. – (1) These rules may be called as the Motor Vehicles (Third Party Insurance Base Premium and Liability) Rules, 2022.

(2) They shall come into force on 1st June, 2022.

2. Base premium and liability. – The base premium for third party insurance for unlimited liability for the various classes of vehicles shall be as specified in the Tables given below; namely:-

Table I

Table II

Table III

Table IV

Table V

Rates for Electric vehicles

Table VI

Long term rates for electric vehicles – Private Cars and Two wheelers

Table VII

Rates for Electric vehicles – Passenger carrying

Table VIII – Quadricycle

Long term rates – Three years single premium:

Note.-

I. Educational institution bus means an omnibus, which is owned by a college, school or other educational institution and used solely for the purpose of transporting students or staff of the educational institution in connection with any of its activities.

II. A discounted price of 50% of the premium based on the Indian Motor Tariff shall be allowed to a private car registered as Vintage Car.

III. A discount of 7.5% on the premium shall be allowed for Hybrid Electric Vehicle.

IV. All rates of premium shall be rounded off to the nearest rupee.

V. The category of vehicles under the Tables shall have the meaning assigned to a particular category of vehicles under Central Motor Vehicle Rules, 1989.

[F. No. RT-11036/194/2021-MVL]

AMIT VARADAN, Jt. Secy.