Premium Factors, Cover Types and 2026 Rules
Third-party insurance premium rates for cars and bikes in India (2026 check)
The notified third-party premium rates for private cars, two-wheelers and EVs, the long-term TP rule for new vehicles, what TP cover pays and how to check revisions.
Third-party (TP) motor insurance premiums in India are not set by insurers. Base rates are notified by the Ministry of Road Transport and Highways in consultation with IRDAI, by vehicle type and engine capacity. The rates in force since 1 June 2022 are, for private cars, ₹2,094 a year up to 1,000 cc, ₹3,416 for 1,000–1,500 cc and ₹7,897 above 1,500 cc; for two-wheelers, ₹538 up to 75 cc, ₹714 for 75–150 cc, ₹1,366 for 150–350 cc and ₹2,804 above 350 cc. GST at 18% is added. A revision was discussed in 2025 and 2026 but, as far as we can confirm in October 2026, no new rates had been notified; check the source list below before you rely on these numbers.
This guide is part of how a car insurance premium is calculated.
Why TP cover is compulsory
Section 146 of the Motor Vehicles Act, 1988 says no one may use a motor vehicle in a public place without a policy covering third-party risks. Section 147 sets out what that policy must cover: liability for death of or bodily injury to any person and damage to third-party property. As rewritten by the 2019 amendment, section 147(2) lets the Central Government prescribe the base premium and the insurer's liability for death and grievous hurt in consultation with IRDAI; standard policy wordings still show death and injury liability as unlimited. Section 196 punishes driving an uninsured vehicle with a fine of ₹2,000 and/or imprisonment up to three months for a first offence, and ₹4,000 and/or up to three months for a repeat offence, as amended in 2019.
The TP policy pays other people. It pays nothing for damage to your own vehicle, its theft or fire. That is the job of the own-damage section.
Annual TP rates in force (from 1 June 2022)
| Vehicle | Engine capacity | Annual TP premium (before GST) |
|---|---|---|
| Private car | Up to 1,000 cc | ₹2,094 |
| Private car | 1,000–1,500 cc | ₹3,416 |
| Private car | Above 1,500 cc | ₹7,897 |
| Two-wheeler | Up to 75 cc | ₹538 |
| Two-wheeler | 75–150 cc | ₹714 |
| Two-wheeler | 150–350 cc | ₹1,366 |
| Two-wheeler | Above 350 cc | ₹2,804 |
The same notification set separate, lower rates for private electric cars and two-wheelers, banded by motor power in kilowatts rather than cc, and discounts for hybrids and vintage cars. See electric car insurance for how EV rates work.
Long-term TP for new vehicles
Since 1 September 2018, following a Supreme Court direction, every new private car must be sold with TP cover for three years and every new two-wheeler with TP cover for five years, paid upfront. Since August 2020, the own-damage part does not have to be long-term: you can buy a one-year OD cover and renew it yearly as a standalone OD policy while the long-term TP runs.
The long-term TP premiums widely reported in the 2022 notification are:
| New vehicle | Engine capacity | Single long-term TP premium |
|---|---|---|
| Car (3 years) | Up to 1,000 cc | ₹6,521 |
| Car (3 years) | 1,000–1,500 cc | ₹10,640 |
| Car (3 years) | Above 1,500 cc | ₹24,596 |
| Two-wheeler (5 years) | Up to 75 cc | ₹2,901 |
| Two-wheeler (5 years) | 75–150 cc | ₹3,851 |
| Two-wheeler (5 years) | 150–350 cc | ₹7,365 |
| Two-wheeler (5 years) | Above 350 cc | ₹15,117 |
Worked check. For a 1,197 cc car, three annual TP premiums would be ₹3,416 × 3 = ₹10,248. The single three-year premium of ₹10,640 is ₹392 more, but it locks in the rate for three years.
Worked example: the TP line on a renewal
A 1,498 cc car falls in the 1,000–1,500 cc band. TP premium ₹3,416, GST 18% = ₹614.88, so TP alone costs about ₹4,031. A 1,598 cc car of a similar size crosses into the top band: ₹7,897 + 18% = about ₹9,318. That ₹5,287 difference is fixed by law and is one reason engine capacity matters when you buy a car, not only when you insure it.
For a liability-only policy, this TP line plus the PA cover and GST is almost the whole premium. For a comprehensive policy, it is the floor below which no quote can go.
Property damage limit and optional TP covers
The TP section pays unlimited amounts for death and injury, but property damage is capped in the policy. Private car policy wordings commonly show a limit of ₹7.5 lakh for third-party property damage; two-wheeler wordings commonly show ₹1 lakh, and some insurers let two-wheeler owners restrict this to ₹6,000 (the old statutory minimum from the pre-2019 section 147, which the 2019 amendment no longer states as a figure) for a small premium reduction. Check the "Limits of liability" section of your schedule.
Optional extras in the TP section include legal liability to a paid driver and PA cover for unnamed passengers. These add small amounts to the TP line and are not discounted by NCB.
How revisions happen and how to check
TP rates are revised by a draft notification put out for public comments, followed by a final notification in the Gazette of India with an effective date. Revisions apply to policies bought or renewed on or after that date, not to the remaining term of a policy you have already paid for.
To check the rate in force on the day you renew:
- Look at the TP line on two or three quotes: they should match exactly for the same vehicle.
- Check the Ministry of Road Transport and Highways website and the IRDAI website for notifications on "motor third party premium".
- If quotes show different TP amounts for the same cc band, ask why. The difference is usually an optional cover, not the base rate.
Frequently asked questions
Can an insurer give me a discount on TP premium?
No, the base rate is notified. The total TP section can differ only because of optional covers such as paid driver liability or a TPPD restriction for two-wheelers.
Is TP premium different in different states?
The base TP rate is the same across India for a private vehicle of the same type and cc band. OD premiums differ by registration zone.
I bought a car in 2024 with three-year TP. What do I renew each year?
Only the own-damage cover, as a standalone OD policy, until the TP term ends. After that you can buy a comprehensive policy.
Is a liability-only policy enough for an old car?
Legally, yes. Financially, it depends on whether you could replace the car yourself after theft, fire or flood. See cover types compared.
Sources
- Ministry of Road Transport and Highways — TP premium notifications and the Motor Vehicles Act
- IRDAI — motor insurance circulars and registered insurers
- e-Gazette of India — final notifications with effective dates
- Parivahan Sewa — check insurance validity on your registration record
