Sluggish growth in domestic vehicle sales, combined with static motor third-party (TP) rates and intense competition, has put a damper on motor insurance premiums during the current financial year (FY25). Premium growth in the April–February period of FY25 dipped to 8%, a notable decrease from the 13.6% observed during the same timeframe last year.
The overall motor insurance premium for the April–February period of FY25 reached Rs 89,405.56 crore. Within this segment, the growth in motor third-party premiums saw a reduction to 7.88%, down from 10.57% the previous year. Additionally, the growth in motor own-damage premiums fell to 8.23%, in contrast to the 18.28% recorded a year prior.
