ICICI Lombard General, Go Digit shares rise up to 6%, here's why 

Shares of general insurance firms ICICI Lombard General and Go Digit rose up to 6% in the afternoon session on Friday amid a report that the road ministry was considering raising third Party Insurance premium by 18-25% for motor insurance.  

In FY25, Motor third party insurance formed 60% of total motor insurance  premium & 19% of general insurance premium.

ICICI Lombard General shares rose 6% to Rs 1991.50 on Friday against the previous close of Rs 1875.70. Market cap of the firm climbed to Rs 98,424 crore. 

On similar lines, stock of another insurance major Go Digit climbed 3.34% to Rs 348.95 on BSE. Market cap of the firm reached Rs 31,816 crore. 

Motor Third Party insurance is mandatory under the Motor Vehicles Act. It provides cover for third-party liabilities due to accidents involving insured vehicles. The government has not raised third party premiums for the past four years, even as insurers continue to battle high loss ratios in the segment.