ICICI Lombard Q1 profit drops 46% after Supreme Court order
Business
ICICI Lombard's net profit dropped 46% in Q1 FY2027, falling to ₹403.17 crore from last year's ₹747.08 crore.
The main reason? A Supreme Court order forced the company to set aside an extra ₹165 crore for motor accident claims, pushing up its costs.
Supreme Court raises motor TP payouts
The Supreme Court now requires insurance payouts for unpaid domestic work by homemakers, which means higher compensation in accident cases.
ICICI Lombard's CEO Sanjeev Mantri said this could push up the motor TP loss ratio of the industry by 12% to 15%.
While the company's net premium underwritten rose 17.7%, its gross direct premium grew 7.5% against an industry growth of 10.9%, and it's hoping a review petition might bring some relief.