Page 22 - Insurance Times November 2021

Indian Motor Third party premium rates for 2002-03, 2019-20 after adjusting
for the inflation factor
Category of Vehicle Sub Category Premium Premium 2019-20
(Rs.) Rs. Premium
2002-03 2019-20 (Rs.) without
inflation could
have been
Private Cars Not exceeding 1000 cc 65 276 100
Exceeding 1000 cc but not exceeding 1500 cc 77 428 156
Exceeding 1500 cc 90 1049 381
Two Wheelers Not Exceeding 75 cc 95 356 129
Exceeding 75 cc but not exceeding 150 cc 113 555 202
Exceeding 150 cc but not exceeding 350 cc 124 881 320
Exceeding 350 cc 134 1716 623
Goods Carrying Vehicles Public Carriers Other Than GVW not exceeding 7500 kg 541 2022 735
Three Wheelers GVW Exceeding 7500 kg but not exceeding 12000 kg 574 3458 1257
GVW Exceeding 12000 kg but not exceeding 20000 kg 591 4291 1559
GVW Exceeding 20000 kg but not exceeding 40000 kg 607 5526 2008
GVW Exceeding 40000 kg 657 5336 1939
Goods Carrying Vehicles Private Carriers Other Than Three
Wheelers GVW not exceeding 7500 kg 485 1083 394
GVW Exceeding 7500 kg but not exceeding 12000 kg 515 2209 803
GVW Exceeding 12000 kg but not exceeding 20000 kg 528 1396 507
GVW Exceeding 20000 kg but not exceeding 40000 kg 545 2244 815
GVW Exceeding 40000 kg 587 3188 1158
Goods carrying Motorised Three Wheelers and Motorised
Pedal Cycles Public Carriers Except e-carts 149 525 191
Goods carrying Motorised Three Wheelers and Motorised
Pedal Cycles Private Carriers Except e-carts 140 503 183
Four Wheeled Vehicles used for carrying passengers for hire
or reward - Capacity not exceeding 6 passengers Not Exceeding 1000 cc 285 1653 601
Exceeding 1000 cc but not exceeding 1500 cc 337 1754 637
Exceeding 1500 cc 375 2188 795
Three Wheeled Vehicles used for carrying passengers for hire
or reward - Capacity not exceeding 6 passengers Except e-rickshaw 233 1289 468
Motorised Three wheeled vehicles used for carrying
passengers for hire or reward - Capacity exceeding 6 but
not exceeding 17 671 3898 1416
Motorised Two Wheelers used for carrying passengers
for hire or reward Not Exceeding 75 cc 106 1064 387
Exceeding 75 cc but not exceeding 150 cc 124 1064 387
Exceeding 150 cc but not exceeding 350 cc 138 1064 387
Exceeding 350 cc 148 2093 761
Pedestrian controlled agricultural tractors with HP rating
Special type of vehicles not exceeding 6 HP, and Plane Loaders 62 199 72
Hearses 19 199 72
Other Miscellaneous and special type of vehicles 130 879 319
Average Rate 298 1754 637

(Actual premium figures of 2019-20 are divided by the index of 289 (relevant to year 2019-20) and multiplied by index 105
(relevant to 2002-03) to arrive at the inflation adjusted premiums of 2019-20. And the average rate in the above table
is the average of such inflation adjusted figures).

Using the above index figures and the index adjusted premium figures, it should be possible to calculate the impact of
inflation in the increased premium. There can be two approaches for calculation of inflation impact on premium figures.
It can be done either by adjusting the premium figures of 2002-03, or by adjusting the figures of 2019-20. Both these
methods have been used. And both the methods yield almost same results.

22 The Insurance Times, November 2021