The Indian Road Ministry is currently evaluating a potential increase in motor third party insurance premiums for the fiscal year 2026 (FY26). This consideration comes in response to a request from the Insurance Regulatory and Development Authority of India (IRDAI), which has proposed an average increase of 18% in these premiums.

Regulatory Push for Premium Adjustment

The IRDAI, as the primary insurance sector regulator in India, has initiated this move, signaling a possible significant shift in the motor insurance landscape. The proposed 18% average increase in motor third party premiums, if implemented, could have far-reaching implications for both insurers and vehicle owners.

Potential Impact on Insurers and Consumers

While the Road Ministry is still in the evaluation phase, the potential increase could lead to:

• Higher Costs for Vehicle Owners: If approved, motorists might face increased insurance expenses, potentially affecting vehicle ownership costs.

• Improved Profitability for Insurers: Insurance companies could benefit from higher premium collections, potentially bolstering their financial health in the motor insurance segment.

• Enhanced Coverage: The premium hike might allow for better risk coverage and potentially improved claim settlement capabilities for insurers.

Next Steps

As the Road Ministry deliberates on this proposal, stakeholders in the insurance and automotive sectors will be keenly watching for the final decision. The outcome could significantly influence the dynamics of the motor insurance market in India for FY26 and beyond.

It's important to note that this is still under consideration, and the final decision may differ from the initial proposal. Vehicle owners and insurance companies alike will need to stay informed about any developments in this regard.

Go Digit General Insurance Limited , a leading digital-first general insurance company, has reported a significant boost in profitability for both the fourth quarter and the full fiscal year 2024-25, driven by strong premium growth and improved investment income.

Q4 2025 Performance Highlights

Go Digit's profit after tax for Q4 2025 surged by 118.9% to ₹116.00 crore, compared to ₹53.00 crore in the same quarter last year. This impressive growth came despite a challenging market environment, showcasing the company's resilience and strategic execution.

The gross written premium (GWP) for the quarter stood at ₹2,576.00 crore, marking a 10.3% increase from ₹2,336.00 crore in Q4 2024. Notably, without the 1/n basis accounting change, the GWP growth would have been even higher at 13.5%, reaching ₹2,652.00 crore.

Key Financial Metrics for Q4 2025

FY 2025 Financial Performance

For the full fiscal year 2024-25, Go Digit reported an impressive 133.5% growth in profit after tax, reaching ₹425.00 crore compared to ₹182.00 crore in FY 2023-24. This substantial increase in profitability underscores the company's strong financial performance and effective growth strategies.

The company's GWP for FY 2025 grew by 14% to ₹10,282.00 crore, up from ₹9,016.00 crore in the previous year. Excluding the impact of the 1/n basis accounting change, the GWP growth would have been 15.6%, totaling ₹10,419.00 crore.

Key Financial Metrics for FY 2025

Solvency and Asset Management

Go Digit's solvency ratio as of March 31, 2025, stood at a robust 2.24x, significantly higher than the 1.61x reported at the end of the previous fiscal year and well above the regulatory requirement of 1.50x. This strong solvency position reflects the company's financial stability and capacity to meet its obligations.

The company's assets under management (AUM) grew by 25% year-over-year, reaching ₹19,703.00 crore as of March 31, 2025, compared to ₹15,764.00 crore at the end of FY 2024. This growth in AUM has contributed to the increase in investment income, further bolstering the company's financial performance.

Segment Performance

Go Digit reported growth across various insurance segments:

• Motor Insurance: Continued to be a significant contributor to the company's premium income
• Health, Travel & Personal Accident: Showed strong growth, particularly in the retail health segment
• Fire Insurance: Demonstrated robust performance with increased premium collection

Management Commentary

Jasleen Kohli, Managing Director and Chief Executive Officer of Go Digit General Insurance, commented on the results: "We are pleased to report strong financial performance for both Q4 and the full fiscal year 2025. Our focus on leveraging technology, enhancing customer experience, and expanding our product portfolio has yielded positive results. The significant improvement in our profitability and the growth in our premium income reflect the effectiveness of our strategies and the trust our customers place in us."

Future Outlook

With its strong financial position, technological capabilities, and customer-centric approach, Go Digit General Insurance is well-positioned to capitalize on the growing demand for insurance products in India. The company continues to focus on innovation, digital transformation, and expanding its distribution network to drive sustainable growth in the coming years.

As the insurance sector evolves, Go Digit's emphasis on simplifying insurance processes and offering customizable products is expected to play a crucial role in its future success and market expansion efforts.