Motor third-party insurance premiums in India grew 9% year on year in September 2026, lagging both own-damage cover and the broader non-life insurance industry. Kotak Institutional Equities suggested that concerns about compensation liabilities following a June 2026 Supreme Court ruling could be reducing insurers’ focus on the segment, but the connection remains uncertain.
Key Takeaways
- Third-party premium growth lagged own-damage insurance by eight percentage points.
- SBI General Insurance stood out as an exception to slower growth among private insurers.
- Kotak’s suggested link between compensation concerns and business strategy is not a confirmed cause.
Table of Contents
- Motor third-party insurance lags other premium growth
- Compensation ruling raises an uncertain liability question
- Own-damage and third-party policies cover different risks
- Conclusion
Motor third-party insurance lags other premium growth
September’s figures show an uneven motor insurance market: premiums for protecting policyholders’ vehicles expanded faster than premiums for covering liabilities to others. Overall motor insurance growth fell between the two categories.
The weakness was not uniform across insurers. Kotak said SBI General Insurance’s third-party premiums increased 32% year on year, compared with growth of 11%–20% in the preceding two months. Most other private insurers grew more slowly.
The wider non-life market, excluding crop insurance, also outpaced motor third-party cover. Its September growth was stronger than its pace across the July–September 2026 quarter.
| Item | Details |
|---|---|
| Motor third-party premiums | Up 9% year on year in September 2026. |
| Motor own-damage premiums | Up 17% year on year in September 2026. |
| Total motor insurance premiums | Up 13% year on year in September 2026. |
| Non-life premiums, excluding crop | Up 14% in September and 12% in July–September 2026, both year on year. |
Compensation ruling raises an uncertain liability question
The Supreme Court’s June 2026 ruling recognised the economic value of unpaid domestic work performed by homemakers when determining compensation in motor accident cases. Third-party insurers are responsible for compensating eligible victims and families in accidents involving insured vehicles.
Kotak identified reduced insurer focus following the ruling as one possible explanation for the segment’s slower expansion. That is an assessment of potential business behaviour, not evidence that the judgment caused September’s growth rate.
The available information does not quantify any increase in claims costs arising from the ruling or establish how individual insurers have changed their underwriting strategies.
Own-damage and third-party policies cover different risks
Third-party insurance covers legal liabilities for injury, death or property damage caused to others. Own-damage insurance instead protects the insured vehicle against covered loss or damage.
New India Assurance’s standalone own-damage policy explanation makes the separation clear: the product protects a vehicle whose owner already has valid third-party insurance, and third-party liability is not included in that standalone cover. Faster own-damage premium growth therefore concerns a different category of protection, rather than a substitute for compulsory third-party cover.
Conclusion
September’s figures establish slower growth in motor third-party insurance, but not its cause. Further premium data and claims disclosures will be needed to assess whether compensation liabilities are materially changing insurers’ approach to the segment.
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