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Third-party motor insurance premium hike delay worries insurers

Next six months will be tough for the industry in terms of loss ratios

Rakesh Jain, CEO, Reliance General Insurance
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If the premiums do not go up and the awards increase, it will create a gap. As a result, the industry will see higher loss ratios, said Rakesh Jain, CEO, Reliance General Insurance

Subrata Panda Mumbai
Non-life insurers are facing a double whammy. While health claims due to coronavirus (Covid-19) are rising fast, the claims from motor segment have also picked up. 

Another big worry is hike in the third-party motor insurance premium — supposed to have kicked in from April 1 — that was put on hold by the Insurance Regulatory and Development Authority (Irdai). 

There is no clarity if the regulator will hike third-party rates this year. Insurers claim this may result in a negative impact on loss ratio for them in the motor segment.

“The price increase proposed in the exposure draft was based on data

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First Published: Aug 29 2020 | 6:06 AM IST

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