In a notable shift, third-party (TP) motor insurance premiums in India grew by 9.3% in FY26, outpacing the 9% growth in own-damage (OD) premiums, marking a reversal from previous trends where OD consistently led. The overall motor insurance market expanded by approximately 9% on an estimated base of ₹1.08 lakh crore (around $13 billion USD). This change is primarily driven by stricter enforcement against uninsured vehicles, with penalties for non-compliance now enforced more rigorously. First-time offenders face fines of ₹2,000 (about $24 USD), while repeat violations can lead to fines of up to ₹4,000 (approximately $48 USD) or imprisonment. Authorities are leveraging digital verification tools linked to the VAHAN database to increase compliance. Previously, it was estimated that 40-45% of vehicles on the road were uninsured, indicating significant potential for growth in TP coverage. In contrast, OD growth remains closely tied to new vehicle sales, which have been relatively stagnant, as OD typically represents nearly 80% of premiums for private cars. The changing dynamics in the automobile market, including a decline in market share for major players like Maruti Suzuki and Hyundai, have also influenced pricing strategies, allowing insurers to price OD premiums more competitively.