IRDAI is preparing to undertake its first major review of third-party (TP) motor insurance premium rates in several years. The review comes as general insurers continue to report significant underwriting losses in the motor TP portfolio.
Context: Motor TP insurance has been a persistent pain point for insurers, with claim costs driven by rising medical expenses, increased Third-party liability awards, and fraud. Industry bodies have long argued that existing TP rates are inadequate to cover claims. The review is expected to consider age-linked pricing, vehicle classification by engine capacity, and regional claim experience. The outcome could significantly impact motor insurance pricing and affordability.
Source: NewsBytesApp (July 8, 2026)