MoRTH proposes to hike third party insurance price for domestic automobile space
News: MoRTH in consultation with IRDA has come up with a draft notification depicting increasing in prices of third party motor insurance across all segments effective from FY22-23 (April 2022). To promote clean mobility, It also proposes to offer a discount of 15% for EVs and a discount of 7.5% for hybrid vehicles on premium amount.
Views: The present hike comes after a hiatus of almost two years due to ongoing Covid-19 led disruptions. On the face such a hike (in percentage) seems to be in double digit for most of segments particularly across PV & 2-W category but in blended terms the same amounts to ~0.2% of on road price for PV (blended rise of |1066/unit) and ~1% of on road price for 2-W (blended rise of Rs.717/unit). We believe such a hike is nominal in nature and will not have any meaningful negative impact on demand prospects.