Assocham Report: Motor Vehicle Insurance to touch Rs 38,200 Cr Target

The direct premium grossed earned by general insurers via the motor vehicle insurance is expected to reach Rs 38,200 crore target by 2017. It will be a 60% increase in the growth rate from a level of about Rs 17,000 crore in 2012-13, according to a published report by Assocham.

Read more

Compare & Save upto 85%* on Car Insurance
Get Car Insurance starting
@ only 2094/year#
  • Renew Policy In2 Minutes

  • 20+ Insurers To Choose From

  • 51 Lakh+ vehicles insured

#TP price for less than 1000 CC cars. All savings are provided by insurers as per IRDAI approved insurance plan. Standard T&C apply.

The study titled ‘Motor Insurance: The way ahead’ revealed that individual agents are highly preferred for issuing insurance policies with a 56% share of Indian market, followed by direct purchase from the insurer that accounts for 22% market share.

The individual agents grossed premium revenue worth Rs 9,200 crore in 2012-13, whilst the company brokers generated Rs 4,700 crore in premium.   

The study report prepared by the Economic Research Bureau of the Associated Chambers of Commerce and Industry of India (Assocham) further indicated;

Motor insurance holds the biggest pie of general insurance market, with a share of 47.05% in FY 12-13, and a reported growth rate of 22.24% from the total premium underwritten in the same year. It is a 33.38% growth as compared to the FY 11-12.

D.S. Rawat, Secretary General, Assocham commented, “The motor insurance segment will grow in tandem with the expansion in automobile industry. With regular arrivals of new car models and manufacturers in the Indian automobile market, a direct positive impact on the sales of motor insurance will be seen.”  

He further said, “The improving income levels, rising demand for vehicles, expanding auto finance market and growing health awareness will all cumulate into a major factor in augmenting this sector.”

Assocham suggestions for Motor Insurers:

Today, customers prefer to purchase services-based insurance cover. For example, customers opt for a policy that offers enhanced hospitalization cover, personal accident cover and zero depreciation motor insurance cover. Therefore, the industry must evaluate the changing consumer behavior, adopt suitable strategies, and devise unique plans that render additional assistance such as spot repairs, towing and fuel assistance on a highway.     

Sensible Pricin:-

The study says unavailability of valuable market data prevents the insurers to price a risk. Today, the policies are priced based on the vehicle’s manufacturing year, engine capacity, area of the purchase, usage of the vehicle, credit score and occupation of the driver. But if we have to move forward with the market expansion, we need a pragmatic pricing of the motor insurance policies.

Claims Settlement:-

The study suggests that insurers must streamline their claims settlement procedure, wherein the insurance company can directly interact with the claimant and improve their opportunity to prove their worth among competitors.

Source: This news was published on May 20, 2015 in under the title: “General insurers' premium from motor vehicle insurance to touch Rs 38,200 cr: Assocham”

Find similar car insurance quotes by body type

Hatchback Sedan SUV MUV
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
 Why buy from policybazaar

Car insurance articles

Recent Articles
Popular Articles
Does Comprehensive Car Insurance Cover Hit and Runs?

09 Jan 2023

Yes, your comprehensive car insurance policy may cover the damages
Read more
The New IRDAI Regulations for KYC in Car Insurance

03 Jan 2023

As per the IRDAI guidelines, all motor insurance sectors including
Read more
How Can We Use Roadside Assistance Cover in Car Insurance?

09 Dec 2022

Roadside Assistance is an add-on cover offered with your
Read more
Is Nut Bolt Covered Under Car Insurance?

06 Dec 2022

No, any damage to the nut bolt or any other consumable of your
Read more
What Happens When You Only Have Third-Party Insurance?

05 Dec 2022

Third-party car insurance is a mandatory cover as per the motor
Read more
Getting Your Duplicate Car Insurance Policy is Easy-Here’s How!
Losing your car insurance documents can be daunting. In such a state of affairs, the first thing that comes to your
Read more
Check Car Insurance Status Online on Parivahan Sewa/ RTO?
It doesn’t matter if you are an excellent driver or take your car out only once in a few months, your car must be
Read more
Multiple Ways To Check Your Car Insurance Status Online
With everything going digital, checking vehicle insurance status online has become easier than ever. It not only
Read more
How to Find Car Insurance Details by Registration Number?
As a car owner, it is mandatory to have a car insurance policy under the Motor Vehicles Act, 1988. Sometimes, you
Read more
Transferring Car Insurance from One Person to Another
An integral part of selling a car, for both the buyer and the seller, is ensuring a successful car insurance
Read more