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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

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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