(1) By virtue of powers vested in the Authority under Section 14 (2)(i) of the IRDA Act, 1999, the Authority has been notifying the premium rates applicable to Motor Third Party Liability Insurance every year starting from 2011.
(2) The Authority issued an Order (No. IRDA/NL/ORD/MOTP/051/03/2019 dated 28thMarch 2019)extending the validity of premium rates set out in Order (No. IRDA/NL/NTFN/MOTP/053/03/2018) dated 28th March 2018, beyond 31st March, 2019 until further notice.
(3) Further to the Order ref no. IRDA/NL/ORD/MOTP/051/03/2019 dt:28th March 2019, the Authority issued an exposure draft dated 20th May 2019 showing the proposed premium rates for Motor Third Party Liability Insurance covers for the FY 2019-20 detailing the methodology of arriving at the premium and inviting comments on the proposed rates from all stakeholders concerned.
(4) The exposure draft provides the broad methodology used in estimating premium rates and also the proposed premium rates for the FY 2019-20.
(5) The last date for receiving feedback from the stakeholders was 29th May, 2019.
(6) Comments have been received from various stakeholders and the same have been carefully examined.
(7) Now, in exercise of the powers vested with the Authority under Section 14 (2) (i) of the IRDA Act 1999, the Authority hereby notifies the premium rates applicable to Motor Third Party Liability Insurance for the financial year 2019-20 with effect from 16th June 2019 as given in Annexure A.
(8) Insurers are hereby advised to be mindful of the concerns expressed by vehicle owners about the availability of insurance. Considering the mandatory nature of Motor Third Party Liability Insurance, insurers are advised to ensure that Motor Third Party Liability Insurance is made available at their underwriting offices and through all available channels of distribution including online. The Authority will treat any complaint of non-availability of insurance or use of methods to deny/ delay the insurance cover, seriously.
(9) Further, Insurers are not permitted to cancel the current insurance policies and replace those with fresh policies with new premium rates. This notification as well as the enclosed schedule of premium rates shall be prominently displayed on the Notice Board of every underwriting office and on the website of the Insurers where it can be viewed by the public.
(10) This notification is issued in supersession of the Authority’s earlier notification ref:IRDA/NL/ORD/MOTP/051/03/2019 dt:28th March 2019.
