Non-life insurers are seeking the first revision in motor third-party (TP) premiums in four years as losses mount in the segment, with industry estimates suggesting a 10-15% hike in TP rates could be on the cards, according to Indian Express and NDTV reports on July 27-30.
TP premiums were last revised in June 2022, and the segment has been under pressure from claims inflation with no rate increase since. New India Assurance's motor underwriting loss surged more than 57% year-on-year to Rs 1,297.2 crore in Q1 FY27.
A June 11, 2026 Supreme Court judgment recognising the economic value of unpaid domestic work by homemakers — with compensation under a distinct 'Loss of Domestic Care' head based on a monthly income of Rs 30,000 — is expected to raise the industry's motor TP loss ratio by 12-15%, according to ICICI Lombard, which has set aside an additional Rs 165 crore in claims reserves. IRDAI is reviewing TP tariffs before making recommendations to the Ministry of Road Transport and Highways.
For customers, a 10-15% TP hike would likely mean only a 4-8% rise in overall motor premiums — roughly Rs 400-800 on a Rs 10,000 annual premium.
Sources: Indian Express, NDTV (July 27-30, 2026)