Two-wheeler and small car owners are in for a delight as insurance premium on these vehicles will come down in the detarrifed regime, which has come into force from January 1.
Under the new regime the insurance premium of a vehicle would depend on its make, engine capacity, owners' claim experience and region of operation.
"Insurance premium henceforth would be a function of model and make, claim experience and other factors, thus affecting the annual outgo one has to shell out," N K Kedia, executive director (marketing) of Iffco-Tokio, said here.
He said owners with lower-risk profile history would shell out less on motor insurance under the new regime.
"This would, in a way, encourage healthy driving practices as a safe driver would be rewarded in terms of lower premium," he added.
Rahul Aggarwal, director at Optima Risk Management Services, said cars of lowers engine capacity, for example below 1,500cc, would invite at least 20-30% lower tariff than the pre-January structure.
"As a result of this, it would by-and-large offset the impact of rise in third party insurance premium," he said.
Similarly, in case of commercial vehicles, the factors which would be considered for fixing premium would again depend on its make, engine capacity and volume of the business, he said.