new delhi insurance sector regulator irda today floated a draft proposal seeking to raise premium rates for third party motor insurance cover for the fiscal beginning april 1 2015 it is observed that there is a high increase in average death claim size for 201314 over the previous year and the increase in average death claim size for the claims arising out of the policies issued in the years 201415 and 201516 which would get settled over the next 810 years is expected to be much higher irda said in the exposure draft third party insurance cover is for other than own damage that is for the vehicle this is a mandatory cover along with the own damage cover that a vehicle owner has to purchase this insurance cover is for any collateral damage to a third party generally a human being caused due to road accident in 201314 there was a 12 per cent increase in average death claim size as per the data from insurance information bureau it has invited comments from all stakeholders by march 20 2015 irda used data of underwriting years from 200708 to 201314 with respect of number of policies number of claims and amount of claims paid up to march 31 2014 for making a case for higher premium towards third party motor insurance following the insurance ordinance the insurance regulatory and development authority of india irda has clarified that each general insurer has to ensure thirdparty cover is made available to the insured in proportion of its market share the new provision would increase their underwriting losses prompting them to seek a hefty hike in the premium payout general insurers have to do the thirdparty motor business mandatorily to the proportion of their market share if one company has 10 per cent market share then this cover must also be in that proportion irda chairman t s vijayan had said last month for general insurers the thirdparty motor portfolio is a lossmaking business as claims exceed the premium collected in total every year the industry is burdened with loss of rs 70008000 crore on account of this impacting their overall profitability