Third-party motor insurance premium hike not enough: Industry

In the past, the general insurance industry has seen TP premium increases in double-digits for the blended pool

The much-anticipated upward revision in third-party (TP) motor insurance premiums, after almost three years, proposed by the insurance regulator in a draft notification a few days ago, has not enthused the general insurance industry, given the hike proposed for the overall portfolio is in low single digits — around 3 per cent.

While the proposed hike is marginal, it will bring some relief to insurers, who have, of late, seen award amounts granted by courts go up significantly, impacting the profitability of their portfolio, said industry experts.

The Insurance Regulatory and Development Authority of India (Irdai), along with the Ministry of Road