Third Party Cover turns into a money spinner

According to IRDA’s report, the General Insurance Companies collected Rs 26,523 crore under the third party motor segment in the last financial year while the premium collected under own damage was Rs 23,727 crore. “There are various factors that have played in the increase of the third party pool, including reduction in own damage claims and increase in premium for third party segment,” said Sanjay Datta, head of reinsurance at ICICI Lombard General Insurance. Now, private sector insurance companies have been writing third party insurance more than motor own damage. Last year, Chola Insurance wrote Rs 1,243 crore of third party premium compared to Rs 922 crore of motor own damage. Shriram General insurance wrote Rs 1,247 crore third party and Rs 589 crore own damage. Similarly, Reliance General Insurance wrote Rs 1,011 crore third party against Rs 952 crore in the last financial year. Motor third party cover is mandatory for all public, private vehicles and commercial vehicles. It covers liability arising out of third party claims due to accidents.