Amid the coronavirus (COVID-19) outbreak, the Insurance Regulatory and Development Authority of India (IRDAI) has kept the motor third party (TP) insurance rates unchanged beyond March 31.

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Earlier in March, the insurance sector regulator had released a draft proposal to increase TP premiums by 2-10 percent from April 1.

IRDAI revises premium rates on a yearly basis, except long-term policies for cars, bikes where it changes every three years and five years, respectively.

Third party motor insurance is required for protection against financial liabilities in case of an accident. The insurer pays the claims if an individual’s insured vehicle hits another vehicle passenger or pedestrian causing death or disability.

Due to the COVID-19 pandemic, companies have announced a temporary shutdown. There have also been pay-cuts announced by firms and a motor premium hike would have adversely impacted individual vehicle owners, according to a Moneycontrol report.

Prime Minister Narendra Modi on Tuesday announced a nationwide lockdown to contain spread of coronavirus. So far, COVID-19 positive cases have crossed 700-mark in India.

First Published:Mar 27, 2020 7:56 PM IST