Hike in third-party motor insurance premiums not enough, say experts

With auto industry struggling, non-life insurance firms seeing muted growth

The hike in third-party motor premiums proposed by the Insurance Regulatory and Development Authority of India (Irdai) is a positive for the non-life insurers. However, some in the industry feel it is not adequate to cover the claim losses.

Irdai has released an exposure draft on revision of third-party (TP) motor insurance premiums for FY21. On an average, it has proposed a hike of 2 per cent in renewal premium for private cars and 8 per cent for two-wheelers. But, for long-term premiums, the average hike proposed is 15 per cent for private cars and 17 per cent for two-wheelers.