Third-party insurance premiums could go up by 10%

Premium rates for third-party insurance are revised annually.

Third-party insurance premiums are set to get more expensive, as reports suggest that the Ministry of Road Transport and Highways (MoRTH) is mulling a hike of around 10%.

Insurers had earlier written to the government seeking a 5-15% hike in rates starting April 2025, citing mounting pressure from rising court awards, upfront claim payments and distorted claim cycles during the pandemic.

Taking note of this, the ministry and the insurance regulator are said to be having discussions regarding third-party insurance premiums, which could go up by 10% on average. Some segments, like school buses, might see a minimal hike.

Premium rates for third-party insurance are revised annually. Since 2018, rates have been increased by around 2-3%. The rates remained unchanged in 2021, while minor revisions were made in 2022 and 2023.

Currently, the third-party insurance premium for small cars up to 1,000cc is Rs 2,100, while that for midsize cars (1,000-1,500cc) is Rs 3,400.

Source: ET Auto