The general insurance industry is hoping for an increase in third party motor insurance rates for 2021-22.
The rates are notified by the Insurance Regulatory and Development Authority of India (IRDAI) on an annual basis and had not been changed last year due to the Covid-19 pandemic.
The new rates for 2021-22 are yet to be notified by IRDAI.
According to general insurers, the premium needs to be revised in order to make the segment sustainable.
Further, court judgements in the recent past have also had an impact on the sector.
“Our view is that last year we didn’t get a hike in rates . Before that in February 2020, exposure draft for an increase had come but then the first wave of Covid happened and that was put in the cold storage,” Bhargav Dasgupta, Managing Director and CEO, ICICI Lombard, General Insurance, had said after the fourth quarter results in a media call.
Feb 09, 2021, 23:20 PM IST
New Delhi: In a huge relief for vehicle users, third party motor insurance is not likely to increase from April 1. According to sources, this will be the second consecutive year when the third party motor insurance will not be increased.
Sources claimed that the suggestions for proposed rate hikes have not been sought yet and the Insurance Regulatory and Development Authority (IRDAI) is not thinking to put further burden on the users, keeping in view the high fuel prices.
This will be a relief for the people who are planning to buy a new vehicle, as the effect of a long term premium is very high.