Third-party motor insurance premium hike delay worries insurers

Next six months will be tough for the industry in terms of loss ratios

Non-life insurers are facing a double whammy. While health claims due to coronavirus (Covid-19) are rising fast, the claims from motor segment have also picked up. 

Another big worry is hike in the third-party motor insurance premium — supposed to have kicked in from April 1 — that was put on hold by the Insurance Regulatory and Development Authority (Irdai). 

There is no clarity if the regulator will hike third-party rates this year. Insurers claim this may result in a negative impact on loss ratio for them in the motor segment.

“The price increase proposed in the exposure draft was based on data