Non-life insurance companies may not significantly increase premium for individual motor insurance

MUMBAI: After an increase of 5% to 40% introduced in the third party motor insurance segment, non-life insurance companies may not significantly increase premiums for individual motor insurance or 'own damage' rates, said industry executives.

As part of the annual revision of rates, the Insurance Regulatory and Development Authority, or Irda, has raised premium on third party motor insurance by 5-40% for private and commercial vehicles. Third party insurance is used to pay victims of motor accident.

"With the increase of up to 40% in third party motor insurance, we may not increase premium on own damage significantly," said Sanjay Datta, head of motor insurance at ICICI Lombard General Insurance. "The increase may be in single digit." Insurers have been increasing rates on own damage to compensate for huge losses arising from third party motor segment.