The premium rates for motor third-party liability insurance for 2020-21 remain unchanged from last year’s rate till further order, insurance regulator IRDAI has said. The rates for the ongoing fiscal could not be finalised because of the Covid-19 and consequential lockdown.

Motor insurance comprises two parts — mandatory third party liability insurance and own damage insurance. The rates for the third-party liability insurance are fixed by the IRDAI after consultation with the stakeholders every year and taking into account the claims trend of the past year. Accordingly the regulator came out with the draft proposing the rates for 2020-21 in March.

The minutes of the 108th meeting of the regulator released last week said the process could not be completed because of the lockdown and it was decided to continue with the prevalent rates.

Industry, however, anticipates that there is room for a later revision in case the regulator wants.

“It is only ratification of the existing order. They have nowhere said that this is going to be there for the entire financial year. But generally the understanding is it might not change given the Covid situation,” said Sajja Praveen Chowdary, motor business head, Policybazaar.com.