The Insurance Regulatory and Development Authority (IRDA) notified that the third party motor insurance premium rates will increase by up to 20 per cent from April 1,2013.
The rates were revised by annually adjusting them by a special formula announced last year. The formula takes into accounts, frequency and expenses involved in third party business.
Mr. T S Vijayan, Chairman of IRDA said, "Insurers are advised to be mindful of the concerns expressed by the vehicle-owners about the rates and availability of insurance".
As the motor insurance is mandatory, the authority will treat any complaint seriously of non-availability of insurance or method of deny or delay the provision of cover, Mr. Vijayan added.
Last month, IRDA proposed hike in premiums and it received responses from 67 stakeholders.