Why in News?
Non life insurers are pressing for their first motor third party premium hike in four years, citing a Supreme Court judgment recognising the economic value of homemakers’ unpaid domestic work.
Key Highlights
- In its 11 June 2026 judgment, the Supreme Court held that unpaid domestic work performed by homemakers has measurable economic value and must be fairly considered while awarding compensation under the Motor Vehicles Act, 1988.
- Insurers argue that the ruling is likely to increase compensation payouts, adding to existing underwriting losses.
- They have requested an upward revision in motor third party insurance premiums, the first such increase in four years.
- The Central Government, in consultation with the Insurance Regulatory and Development Authority of India (IRDAI), notifies third party premium rates.
Motor Third Party (TP) Insurance
- Mandatory under the Motor Vehicles Act, 1988 for all motor vehicles operating in India.
- Covers death, bodily injury, or property damage caused to a third party due to the insured vehicle.
- Does not cover damage to the insured vehicle; that requires comprehensive motor insurance.
- Premium rates are regulated by the Central Government, based on recommendations from IRDAI.
Value Addition
- IRDAI: Statutory regulator established under the Insurance Regulatory and Development Authority Act, 1999.
- Motor Accident Claims Tribunal (MACT): Adjudicates compensation claims arising from road accidents under the Motor Vehicles Act, 1988.
- Significance of the Supreme Court ruling: Strengthens recognition of the economic contribution of unpaid care work, advancing substantive gender equality and ensuring more equitable compensation in accident claims.
[2026] With reference to different Committees in India, consider the following details :
| Sl. No. | Committee | Objective | Organization under which it was formed |
| 1 | R.N. Malhotra Committee | Comprehensive reforms of Insurance sector in India | Insurance Regulatory and Development Authority of India |
| 2 | L.C. Gupta Committee | Preparing a roadmap for the introduction of derivatives trading in India | Securities and Exchange Board of India |
| 3 | Urjit R. Patel Committee | Preparing a roadmap for reforming bank lending to the Housing sector | Reserve Bank of India |
| 4 | Y.H. Malegam Committee | Preparing a roadmap for reforms in Microfinance sector in India | Reserve Bank of India |
In which of the above rows are all the details correctly matched ?
[A] 2 only
[B] 2 and 3
[C] 1, 3 and 4
[D] 2 and 4