Takeaways From The Compulsory Motor Own Damage Verdict By Madras High Court: ICICI Securities
General Insurance - Takeaways From The Compulsory Motor Own Damage Verdict By Madras High Court: ICICI Securities
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ICICI Securities Report
Madras High Court has ordered mandatory motor own damage insurance for new cars (third-party is already mandatory) for five years along with compulsory coverage for co-passengers apart from driver.
This would imply that a person purchasing a new car would have to buy compulsory motor TP-OD as well as insurance of all co-passengers and driver.
We believe this can raise the insurance premiums.
We await further clarity on the co-passenger ruling considering that it is difficult to decide the number of co-passengers and adequate premium for all.
Additionally, a five-year combined product is not available as of now. As such, the product and the pricing have to be designed to begin with.
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