3rd party premium hike not enough: Industry

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 %.

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.

With no increase in two years and only a single-digit increase in 2019, the expectation was that the regulator may propose a double–digit hike. In the past, the general insurance industry has seen TP premium increases in double-digits for the blended pool.