Insurance Premium Hike: Third-party insurance for cars and bikes may become costlier..

Non-life insurance companies in the country are seeking to raise premiums for third-party vehicle insurance. They have approached the insurance regulator, IRDAI, with this request. If approved, this would mark the first hike in third-party insurance premiums since June 2022. Companies are pushing for this increase due to persistently rising underwriting losses and a sharp surge in claim costs.

The motor insurance segment exceeds ₹1 lakh crore in size. In this context, an underwriting loss occurs when an insurance company pays out more in claims than it collects in premiums from vehicle owners. According to an *Indian Express* report, alongside the losses in this segment, a recent Supreme Court ruling has further heightened concerns for insurers; the court ordered that the economic value of the work performed by homemakers (set at ₹30,000 per month) be factored into claim calculations, thereby increasing claim payout costs.

**Potential Hike After June 2022**