 "Irdai to make listing a must for large insurers")
Third-party motor insurance premiums would see an increase of 10-40 per cent from April 1 in the private cars and two-wheeler segment. While rates will go up by 40 per cent for all private cars with engine capacity under 1,500cc, it will go up by 25 per cent for cars with a higher engine capacity. The Insurance Regulatory and Development Authority of India (Irdai) in its circular said the cost inflation index had increased by 5.57 per cent year-on-year, from 1,024 in FY15 to 1081 in FY16. However, the regulator cautioned insurers against denying or refusing to provide third-party covers for any vehicle.
Third-party motor premium is regulated by Irdai and revised yearly, based on inflation and claims. This type of insurance is mandatory for all motor vehicles on roads and covers the owner from third-party liability arising out of accidents or damage. For two-wheelers, there would be a rise of 10-15 per cent for vehicles up to 150cc, with a 25 per cent hike in for two-vehicles with engine capacity of 150-350 cc.
Overall, the net incurred claims of non-life insurers stood at Rs 55,232 crore in 2014-15, against Rs 49,179 crore in 2013-14. The incurred claims exhibited an increase of 12.31 per cent in FY15. Among the various segments, health insurance and motor insurance had a high claims ratio at 96.93 per cent and 77.14 per cent respectively. In the motor insurance space, while premiums had seen growth, rewards from the compensation from third-party incidents had seen a 20-30 per cent growth.
Motor TP cover is mandatory for all vehicles running on Indian roads.
