Motor TP Insurance: Are You Overpaying by ₹3,000?

Third-party motor insurance is mandatory for every vehicle in India. A Supreme Court ruling on motor TP claims has insurers watching closely. Here is what this means for your car or bike insurance premium and what you should check right now.

Here's what happened: India's Supreme Court has been hearing cases that could affect how motor third-party (TP) insurance claims are calculated and paid out by insurers across the industry.. Major general insurers are evaluating whether a potential SC ruling would change their TP liability exposure, claims payout ratios, or reserve requirements for motor portfolios.. IRDAI sets motor TP premiums annually based on actuarial data and claims experience — any significant shift in court-mandated compensation levels can feed into future premium revisions for all vehicle owners..

What you should do: Check your motor insurance policy document to confirm your vehicle's engine-cc slab is correctly classified — a wrong slab can mean you are underinsured or overcharged.. Compare your current TP premium against the latest IRDAI-published slab rates online to ensure you are not paying more than the regulated amount.. Review whether you have a standalone Own Damage (OD) policy alongside your TP cover — TP alone leaves your own vehicle repair costs entirely unprotected..

Pro tip: If your car is over 5 years old, your Own Damage IDV (Insured Declared Value) drops significantly — always negotiate IDV at renewal, not just accept the insurer's default figure.

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