ICICI Lombard, Go Digit: Motor insurance stocks in focus today; here is why

Third-party insurance premium in motor insurance is the amount vehicle owners need to pay to an insurance company for a policy that covers damages or injuries caused by their vehicle to others (third parties).

Third-party insurance is legally required in India under the Motor Vehicles Act, 1988, for all vehicles on public roads.

The premium amount is fixed by the IRDAI (Insurance Regulatory and Development Authority of India) based on the vehicle type and engine capacity.

According to ClearTax, coverage under third-party insurance is as below.

Injury or Death: It covers partial disability, permanent disability, or death of a third party;

Medical Expenses: It covers hospitalisation and medical treatment costs of the injured third party;

Property Damage: It also covers damage to third-party property up to a limit of ₹7,50,000; and

Legal Expenses: It covers basic legal costs arising due to third-party claims.

ICICI Lombard Q4 FY25 Results

The insurance company reported a 2% decline in net profit to ₹510 crore for the fourth quarter ended March 31 (Q4 FY25).

The company had reported a post-tax net profit of ₹520 crore in the year-ago period.

However, the total income of the company rose to ₹5,851 crore in the quarter under review compared to ₹5,165 crore in the year-ago period.

The gross direct premium income of the company improved to ₹6,211 crore against ₹6,073 crore in the same quarter a year ago, registering a growth of 2.3%.

The board has recommended a final dividend of ₹7 per equity share, or 70% of the face value of ₹10 each, for the financial year ended March 31, 2025, ICICI Lombard said in a regulatory filing.