Impact of Covid-19 on Motor Insurance: The Policybazaar Show

Ever since the global outbreak of COVID-19, motor insurance has been worse impacted. Although the sector is able to hold itself in the digital space, it remains the most affected as far as the overall motor insurance business is concerned. The worst impact of the pandemic has been on the dealers and offline segment as there is no purchase and selling of vehicles taking place in lieu of the lockdown. However, rollover or renewal segments have been intact as these can be taken care of online.

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There is a lot of confusion in the market due to relaxations in premiums and renewals. The relaxations are only available for third party covers. Consumers who have purchased comprehensive covers are to pay their premiums and ensure timely renewal albeit with benefits. The timely renewal of motor insurance will ensure that the consumer doesn’t have to go through the hassle of re-inspection. It will also help the individual in avoiding the variation in prices.

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THE SHIFT TO ONLINE INSURANCE 

The IRDAI mandate to make insurance-related processes simpler for the consumers has enabled many insurers to take up the online space. Over 90% of policies are sold online. The key is to choose the right cover for your vehicles. The vehicles are checked through video-based inspections. The claim process had already been online, however, there is a surge in the demand as well.

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Since the lockdown, insurers are offering discounts to consumers as vehicles have been off-road resulting in lower damage rates. The consumers who have been prompt in payment of premiums are being rewarded by insurers. A major surge is expected in the purchase of vehicles post the lockdown along with the purchase of motor insurance. The sector is now expecting digital sales and innovations to be the new trends post-COVID.