Shriram General Insurance does not expect SC judgment to impact motor TP portfolio

Anil Aggarwal, MD and CEO of Shriram General Insurance Company

Shriram General Insurance anticipates that the Supreme Court’s ruling on Motor Vehicles Act compensation will not significantly affect its motor third‑party business.

Notably, the Supreme Court’s June 11 decision acknowledged the financial worth of unpaid household labor by homemakers when calculating compensation under the Motor Vehicles Act.

“We are assessing the impact. Given our sizable portfolio, we have already completed the analysis. I do not foresee a substantial effect on our results,” said Anil Aggarwal, MD & CEO of Shriram General Insurance, speaking to businessline.

The ruling introduces a separate compensation category—loss of domestic care—starting at ₹30,000 per month, adjusted periodically for inflation and socio‑economic shifts. Consequently, the motor third‑party loss ratio across the general‑insurance sector is projected to rise.

motor premium

More than 90 % of Shriram General Insurance’s revenue derives from motor‑segment premiums, with roughly 73 % attributed to third‑party cover and 27 % to own‑damage policies.

Regarding future growth in the motor line, Aggarwal remarked: “I do not treat OD and TP as isolated lines; I focus on the total premium and its profitability. The key is whether the combined OD and TP premium, after acquisition costs, yields a surplus. That is the approach we follow.”

During Q1 of the current fiscal year, the company’s motor‑segment premium rose 25 % YoY, outpacing the industry’s 14 % increase. Jointly held by Shriram Group and South Africa’s Sanlam Group, the insurer recorded a 23 % YoY rise in total premium income for Q1FY27, surpassing the sector’s 11 % growth.

Aggarwal forecast that premium income will expand by roughly 20 % in the ongoing financial year.

The firm aims to grow its distribution network to 200,000 financial advisors by FY30 and is steadily bolstering its foothold in the health‑insurance market.

Published on August 7, 2026