Third-party (TP) motor insurance premiums grew 9.3% in FY26, slightly outpacing the 9% growth in own-damage (OD) premiums. The overall motor insurance segment expanded by approximately 9% on a base of Rs 1.08 lakh crore.
Key Drivers: Stricter enforcement of TP compliance by transport authorities and the Vahan database integration are boosting TP premium collections. The Supreme Court's 2017 mandate for long-term TP policies for new cars continues to provide a stable premium base. Rising vehicle parc and increasing third-party liability claims are also contributing to the growth.
Source: Economic Times (May 3, 2026)