Tepid vehicle sales, competition weigh on motor vehicle insurance premiums

The overall motor insurance premium stood at Rs 89,405.56 crore in the April-February period of FY25

(This report has been updated)

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  Sluggish domestic vehicle sales, stagnant third-party insurance rates, and stiff competition are slowing down growth in motor vehicle insurance premiums. Premium growth has slowed from 13.6 per cent in the April-February period of 2023-24 (FY24) to 8 per cent in the same period of 2024-25 (FY25).

 

Overall motor vehicle insurance premiums stood at ₹89,405 crore in the April-February period of FY25.

 

Within the segment, growth in third-party premiums is down from 10.57 per cent last year to 7.88 per cent this year. Growth in ‘motor own damage’ premiums has dropped from 18.28 per