Two-wheeler Insurance Market in India 2022: Current Trends, Key Players and Future Growth

With the rising number of road accidents, the government has been implementing strict rules and focusing more on the two-wheeler owners to start opting for two-wheeler insurance. Witnessing a hike in the two-wheeler insurance market of India, below we have shed light on the two-wheeler insurance market growth in 2022.

Read more
  • Save up to 85% by comparing plans
    Save up to 85%# by comparing plans
  • 20+ Insurers to choose from
    20+ Insurers to choose from
  • 1.2 Crore+ Bike Insured
    1.2 Crore+ Bike Insured
Two Wheeler Top Fold Kapil Sharma Image
No paperwork required! Renew insurance in 60 seconds^

Plans starting at only @ ₹1.3/day*

Enter bike number (e.g DL1SB1234)
Processing

Current Indian Two-wheeler Insurance Market Trend

The Indian two-wheeler insurance market is divided into two types of insurance policies i.e. third-party liability insurance and comprehensive insurance. As per the global data, India's general insurance market is to cross $40 billion dollars by this year. 

With the rising demand in the automotive industry, the market for motor insurance is also increasing rapidly. As per the financial year 2018, motor insurance generated 39.40% of the insurance market in India. Also, the automobile industry will enjoy strong growth in the next 10 years. 

Some of the major global markets of the two-wheeler insurance industries are the USA, Japan, China, the UK, India, etc. Two-wheeler insurance companies have played a tremendous role in generating employment in these regions. 

Looking at the demand, the IRDAI implemented a 10–80% rise in premium rates for the former loss-making segment i.e., third-party insurance. Apart from this, they have decided to disperse the method of annual fixing of the premium for third-party (TP) insurance from last year. With this, we can see insurance companies quoted the amount of their own premium, leading to rigid competition in the market.

Major Players of  the Two-wheeler Insurance Market 

The Indian insurance market is highly competitive because of the several players. Some of the major players in the two-wheeler Indian market are as follows-

1. HDFC ERGO General Insurance Company Limited  

HDFC ERGO General Insurance Company is a joint venture between HDFC Ltd. and ERGO. It offers a range of insurance including 2 wheeler insurance, car insurance, travel insurance, etc.

HDFC ERGO two-wheeler insurance offers financial assistance to bike owners in any unforeseen accident. It is quite popular amongst bike owners as it provides claim approvals within 24hrs, emergency assistance, and has 7600+ network garages all over India.

2. Bajaj Allianz General Insurance Company Limited

It is a collaboration between Bajaj Finserv Limited and Allianz SE. It consists of a range of insurance, including health, travel, motor, etc.

Bajaj Allianz two wheeler insurance protects bike owners in any mishaps against third-party liability. Bajaj Allianz is one of the leading two-wheeler insurance companies and was awarded best company by Money Today.

3. ICICI Lombard General Insurance Company Limited 

It is an Indian general insurance company. It offers insurance coverage in motor, health, travel, crop, etc.

ICICI Lombard two-wheeler insurance protects your bike in an accident, theft, natural and man-made calamities, etc. It is one of the most sought-after insurance companies that provide 24*7 road accident coverage, digital inspection for claims, and has 5100+ cashless garages all over India.

4. Tata AIG General Insurance Company Limited 

It is collaborative efforts between the two biggest global ventures i.e. Tata Group and American International Group.

Tata AIG two-wheeler insurance ensures that your bike is safeguarded from any harm and protects it against any damages. It has cashless garages network all over India with one of the best claim settlement ratios.

5. The Oriental Insurance Company Limited 

The Oriental Insurance Company Limited is a government-owned company under the ownership of the Ministry of Finance. It offers insurance in health, travel, fire, and motor.

It provides financial assistance against the damages to the bike. Its two-wheeler insurance is one of the most sought out insurance plans. Currently, it has 29 regional offices along with 1500 active branches all over India.

COVID-19 Impact on Two-wheeler Insurance Industry 

Being the biggest contributor to economic growth, this industry suffered a lot due to the outbreak of the COVID-19 virus. However, earlier people who opted for the traditional method to buy two-wheeler insurance tried their level best to maintain contactless connections leading to an increase in online sales. Moreover, this is not only the choice for them, but it became a compulsory liability to purchase or renew their two-wheeler insurance online. 

Other Factors for Rising Demand of Two-wheeler Insurance 

Some top factors impacting the demand for two-wheeler insurance are as follows-

1. Rise in Number of Road Accidents 

The rising number of crashes by two-wheelers has put pressure on insurance companies to develop products that have the maximum coverage and give financial security in the form of bearing medical expenses. 

The majority of Indian households is depending on a two-wheeler for going to work. Due to this, it becomes extremely important to protect themselves from any unwanted financial losses such as injuries to themselves, third-party, passengers, or pedestrians.  

In addition, insurance companies increased their coverage and focused on improving the overall user interface experience to stand ahead in the competition.

2. Compulsory Requirement 

According to the Motor Vehicle Act 1988, two-wheeler users must have at least third-party two-wheeler insurance to compensate for the damages to third party’s property or accidental death. 

Looking at the current demand and to safeguard the consumers from biased pricing, which is more likely to increase in the coming future, the government has mandated third-party two-wheeler insurance at the time of registration for all the two-wheeler owners. 

Future of Two-wheeler Insurance Market in India

Keeping a  a valid two-wheeler insurance policy is very important for all two-wheeler owners. The expectations from Indian customers are pushing all the insurance companies to work harder, deliver faster, engage better, and give 24*7 customer support. Also, the upcoming years have the potential to take this market to the next level.

Conclusion

In the above article, we have discussed the current market scenario and future growth of the Indian two-wheeler insurance industry. As a two-wheeler owner, it is your primary duty to invest in the right insurance policy and protect yourself from financial losses & legal liabilities from various unwanted circumstances.

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

Two Wheeler insurance articles

Recent Articles
Popular Articles
PUC Certificate Test Costs in Delhi May Rise Due to Inflation

20 Jun 2024

According to the Transport Department, all the vehicle owners in
Read more
Common Problems Faced by Bike Owners and Their Solutions

10 Jun 2024

As a motorcycle owner, you might face various problems that
Read more
10 Best Bikes for Long Rides in India 2024

07 May 2024

Are you the one who want to cruise through the winding roads of
Read more
MCWG Driving License in India

01 May 2024

To regulate and ensure safe operation, every motorbike owner in
Read more
9 Tips to Maintain Your Bike's Engine

22 Apr 2024

Since the engine is your bike's heart, it is essential to keep
Read more
Three Easy Ways to Check Bike Insurance Expiry Date Online
As significant as it is to buy a bike insurance policy for your motorbike, it is equally important to renew it
Read more
Vehicle Owner Details by Registration Number
Vehicle owner details can come in handy in various situations, such as road accidents, cases of reckless driving
Read more
How to Check Bike Owner Details by Registration Number?
In a world full of different types of two-wheelers, each one has its unique identity enclosed in its registration
Read more
10 Best Bikes for Long Rides in India 2024
Are you the one who want to cruise through the winding roads of the Himalayas or explore the beautiful coastline
Read more
Get Your Vehicle Fitness Certificate from RTO
The Fitness Certificate (FC) of a vehicle is an official document that certifies the vehicle is fit enough to run
Read more

^The renewal of insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for a transaction may vary subject to additional data requirements and operational processes.

^The buying of Insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for transaction may vary subject to additional data requirements and operational processes.

#Savings are based on the comparison between highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.

*TP price for less than 75 CC two-wheelers. All savings are provided by insurers as per IRDAI-approved insurance plan. Standard T&C apply.

*Rs 538/- per annum is the price for third party motor insurance for two wheelers of not more than 75cc (non-commercial and non-electric)

#Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.

*₹ 1.5 is the Comprehensive premium for a 2015 TVS XL Super 70cc, MH02(Mumbai) RTO with an IDV of ₹5,895 and NCB at 50%.

*Rs 457/- per annum (1.3/day) is the price for the third-party motor insurance for private electric two-wheelers of not more than 3KW (non-commercial). Premium is payable on an annual basis