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Homemaker Compensation Ruling Dampens Motor Insurance Growth
21 Oct
Summary
- Motor third-party premiums grew only 9% year-on-year in September 2026.
- A Supreme Court ruling recognized economic value of homemakers' unpaid work.
- Overall motor insurance premiums saw a 13% rise in the same month.
Motor third-party insurance premiums saw a modest 9% year-on-year increase in September 2026, significantly trailing behind the overall motor insurance growth of 13% for the same month. This slowdown is reportedly linked to a June 2026 Supreme Court ruling that acknowledges the economic value of unpaid domestic work by homemakers when determining compensation in motor accident cases.
Insurers may be reducing their focus on this segment due to increased compensation liabilities stemming from the ruling. While motor own-damage insurance premiums grew by 17%, the compulsory third-party coverage lagged considerably. SBI General Insurance was noted as an exception, showing stronger growth in this segment compared to other private insurers who experienced slower expansion.
The broader non-life insurance industry, excluding crop insurance, demonstrated a 14% year-on-year premium growth in September. The divergence highlights the compulsory nature and the evolving risk landscape of motor third-party insurance, influenced by judicial decisions on accident compensation.
