Important losses for motor insurance in India
During the 2017-2018 fiscal year, motor losses would have exceeded 230% of the combined premiums of this class of business for the overall market. This situation is accounted for by the increase in third party liability claims imposed by the authorities.
Initially set at 50 000 INR (740 USD), the minimum due to a traffic accident victim has increased tenfold to reach 500 000 INR (7 400 USD). To deal with this situation, local insurance companies are claiming to cap the compensations of motor third party liability insurance.
In addition to the increase mentioned above, insurance companies will face a further annual increase of 5% on compensations. This measure will be applied as from January 1st, 2019.
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