motor insurance

Segment Grows 15.4% To ₹1.4L Cr, Standalone Insurers Account For 33% Of Total Premium

motor insurance sales grew 7.3 per cent year-over-year for March 2020 beating the Covid-19 lockdown blues, according to GI Council data. motor insurance sales increased 7.3 per cent to Rs 69,208 crore, bouyed by 12% growth from motor third-party, which is mandatory in India and muted by flat owned-damage sales.

Despite a severe slump in auto sales, higher penalties under the new vehicles Act led to a surge in third-party motor insurance purchases in September. Even as vehicle sales tanked 24%, up to 38% more third-party motor insurance policies were picked up, driving the overall insurance business up by 18%.

Has your vehicle’s motor insurance cover lapsed? If yes, you may get a call from an insurance company soon offering to renew the cover. As per the working group’s (WG) recommendations to the Insurance Regulatory and Development Authority of India (Irdai), the obligation of general insurance players to offer motor insurance must depend on the number of vehicles insured or uninsured instead of the premium derived from motor third party (MTP) insurance business.

The government has allowed vehicle owners and mediclaim policyholders, whose contracts come up for renewal between March 25 and May 3 to renew their policies by May 15. The relaxation enabled through a gazette notification, is in line with an earlier order which gave policyholders up to April 21.

motor insurance will soon cost more. Car and bike owners will have to pay about 10% more on new covers, while truck owners will have to shell out around 80% extra under the new price structure proposed by the insurance regulator.

Insurance regulator IRDA on Tuesday said that mediclaim policy holders, who are not satisfied with the services, will soon be able to switch service providers at the same premium.

The share of motor insurance in non-life industry premiums dropped below 30% for the first time, while health cover premiums surged ahead. Up to June-end, total non-life premiums increased by 13.3%, driven by 16.6% growth in health insurance. motor insurance, however, grew slower at 11.9%. Health insurance now constitutes 41.1% of industry premiums.

Covid-related claims may have abated. But health and motor insurance are seeing inflationary pressures and a higher incidence of claims. According to ICICI Lombard General Insurance MD & CEO Bhargav Dasgupta, it is too early to say whether this is a structural change.

The finance ministry has asked state-owned general insurers to devise new marketing strategies and raise premiums to minimise their third party motor insurance losses, which could cause a hefty increase in motor insurance costs.

Ola, an online cab aggregator, on Monday announced its partnership with Bajaj Allianz General Insurance to provide motor insurance solutions to its driver-partners.

Zero depreciation covers, also known as 'zero dep' policies, for motor insurance are becoming a hit among mid- and top-segment vehicles with most preferring the enhanced cover over the standard motor policy.

The "Chola MS motor insurance on the Go" application is available both on Android and iOS supported smartphones and will offer a range of benefits and convenient access to the network of preferred garages offering cashless repair facility to customers.

With car and SUV sales seeing their sharpest fall in nearly eight years, it is all set to be a bad year for motor insurance too. GIC data shows that motor sales growth fell to 8.8% this March from 14.2% for the same period in the previous year. Motor third-party (TP) sales growth — which is mandatory in India by law and covers accidents caused by the driver/ owner to other road users — slowed to 15.4% from 17.6%.

The lockdown has sent the insurance industry into a tailspin with every sector showing a sharp decline in April. motor insurance was the worst affected with a 49% year-over-year dip in sales to Rs 2,621 crore for the month of April. Most other categories like marine, engineering, aviation, crop and personal accident insurance also saw declines between 5-40%.

The Madras high court has kept its order on compulsory five-year bumper-to-bumper insurance for new vehicles with effect from September 1, 2021 in abeyance following a petition filed by the General Insurance Council. The court has posted the case for hearing on September 13 for all interested parties.

Motor third-party insurance, also referred as 'act only' cover, is a statutory requirement as stated under the Motor Vehicles Act. It is called as a 'third-party' cover because the beneficiary of the policy is somebody else other than the two parties involved in the contract that is, the insured and the insurance company. This policy does not provide any benefit to the insured but does cover the insured's legal liability for death/disability of third party loss or damage to third party property.

PhonePe has launched cost-effective insurance plans for two-wheelers and four-wheelers, aiming to provide users with transparent and affordable alternatives to traditional dealership insurance. The new offering allows customers to compare policies from multiple insurers and make purchases through the app, promising significant cost savings and a fully digital process, thereby eliminating paperwork and hidden fees.

Insurers are required to update the details of motor insurance service provider (MISP) in their network on the portal, the insurance regulator has said.

As the Indian passenger vehicle market moves decisively towards diesel, the shift is leaving its mark on motor insurance premia as well.

In a bid to encourage drivers to comply with traffic rules and to prevent road accidents, Odisha Police has proposed to the state government to introduce a higher motor insurance premium for violators.

The regulator Irdai on Thursday decided to set up two hubs on motor insurance and property insurance and also an advisory committee with the overall objective to promote loss prevention measures in the general insurance industry.