Hike in third party motor premiums will only cover inflation cost: Insurers

The insurance regulator has proposed a hike in the third party insurance premium of cars, two wheelers, and transport vehicles

With the non-life insurers reeling under high loss ratios in the motor insurance segment for years, the hike in third party motor insurance premium proposed by the Insurance Regulatory and Development Authority of India (Irdai) is being welcomed by the general insurers but industry experts believe that the proposed hike will only help insurance companies to meet their cost of claim inflation caused by increasing court awards in favour of third party claimants.

However, from the policyholder’s perspective, the hike in premiums might be a trigger for not renewing their insurance policies thus giving rise to fake insurance policies to