A low motor or health insurance quote can save money upfront, but recent underwriting losses and aggressive discounting have put insurer pricing discipline under scrutiny. For buyers comparing policies, solvency, claims experience and complaint data provide a more useful check on an insurer than premium alone.
India’s non-life insurers reported underwriting losses of ₹45,279 crore in FY26, up sharply from a year earlier, even as premium income grew. Most general and standalone health insurers recorded combined ratios above 100%, meaning claims and expenses exceeded earned premium.
The pricing debate has been especially visible in fire insurance. Premiums fell 28.5% year on year during April-July FY27, while IRDAI flagged complaints of discounts of up to 99% on large industrial risks and warned against pricing that could damage financial health and underwriting discipline. Fire is a commercial line and does not directly indicate how retail motor or health policies are priced, but it illustrates the risk of judging an insurer on price alone. For retail buyers, the principle applies when comparing motor and health cover: a lower premium is more meaningful when assessed alongside the insurer’s solvency position, claims experience and grievance record.
Check Your Insurer’s Solvency Ratios and Complaint Disclosures
IRDAI requires insurers to maintain a control-level solvency ratio of 1.50 times, or 150%, based on the relationship between the available solvency margin and the regulatory requirement.
Insurers disclose the ratio in their periodic public disclosures and annual reports. For non-life insurers, Form NL-26 sets out the available solvency margin, required solvency margin and resulting solvency ratio. A ratio above 1.50 indicates compliance with the regulatory control level, while movements across successive quarters show whether the insurer’s capital buffer is strengthening or narrowing.
Check Form NL-45 records for grievance disposal and review the included policy complaints per 10,000 policies and claim complaints per 10,000 claims. These ratios provide a more comparable measure than a raw complaint count because they adjust for the volume of business or claims handled.
Check ICR Alongside Claims Data for Health Insurance
The incurred claim ratio, or ICR, measures net incurred claims against net earned premium. It shows the share of earned premium absorbed by claims. A high ICR can indicate claims pressure.
For health insurance, a combined review of the ICR trend, claims paid or settled, claims outstanding and claim complaints can show an overall performance trend. In September, the Department of Financial Services asked public-sector general insurers to bring down ICRs and improve grievance redressal after its FY26 performance review.
Review Form NL-20, which includes net incurred claims to net earned premium among analytical ratios. Where an insurer publishes a claim settlement ratio, the underlying Form NL-37 reports claim counts by business line, including health, motor own damage and motor third party.
Separate OD from Third-Party Data for Motor Insurance
For motor cover, solvency remains an insurer-wide measure, but claims data should be read by segment. Form NL-37 separates motor own-damage claims from motor third-party claims. IRDAI allows insurers to set their own rates for own-damage cover after filing them with the regulator, while third-party premium rates follow a regulated framework. A low OD quote can therefore be compared with the insurer’s motor claims record, complaint ratio and solvency trend, alongside the IDV, deductible and coverage offered.
Verify Data from Official Disclosures
Look for “Public Disclosures”, “Financials” or “Investor Relations” on an insurer’s website. IRDAI’s public-disclosure framework requires insurers to publish prescribed financial and operating information, including the standard non-life forms covering analytical ratios, solvency, claims and grievances. Checking more than one quarter helps distinguish a one-off movement from a sustained trend.
If you need help comparing the policy terms with the insurer’s solvency, claims and grievance disclosures, look for independent expert advice on MyRupia. MyRupia does not sell insurance or earn insurer commissions. Talk to a MyRupia expert for independent insurance guidance.
Disclaimer: This MyRupia article is for informational purposes only and is based on publicly available government, regulatory and industry sources. It should not be treated as investment, financial, tax, insurance, or legal advice. Information, examples, market data, and expert views mentioned in the article may change over time and should not be considered a recommendation to buy, sell, invest in, or surrender any financial product. Readers should evaluate their individual circumstances and consult a qualified financial professional before making decisions.