Insurers seek first third-party premium hike in four years

Insurers in India are asking for the first increase in motor third-party insurance premiums in four years.

They say they are losing money because they have to pay out more in claims than they collect in premiums.

A recent Supreme Court decision that says homemakers' unpaid work should be compensated has made this problem worse.

The last time premiums were raised was in 2022.

Some insurers, like New India Assurance and ICICI Lombard, have reported big losses in the motor insurance segment.

The third-party insurance segment makes up 60% of the motor premium pool.

Insurers say they need to raise premiums to cover their losses, but vehicle owners might not want to pay more.