Third party insurance may be expensive, increase from 18 to 25%, IRDAI thrown balls in government’s court

Now you may find it expensive to get third party insurance. The Insurance Regulatory body has been suggested to increase an average of 18% premium on an average. If this happens, insurance of cars and vehicles will become expensive. Third party insurance is used in a situation when a third person is harmed due to the car.

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This insurance is mandatory in India, but there has been no increase in it for the last 4 years, while insurance companies are continuously suffering in this segment.

Government will take decision

IRDAI has recommended an average increase in the third party premium to the Ministry of Road Transport and Highways (MORTH). This increase in some categories can go from 20% to 25%. According to media reports, Motor Third Party Insurance was about 60% of the total motor insurance premium and 19% of the total general insurance industry in FY25.

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The government can take a decision on this in the next 2–3 weeks. After the decision, a draft notification will be issued, in which opinion will be taken from the general public and all the concerned parties. Input agencies edited by: Sudhir Sharma