A Supreme Court Committee on Road Safety has asked the Insurance Regulatory And Development Authority (IRDAI) to implement a mandatory three-year insurance policy for cars and five-year policy for motorbikes at the time of sale and registration. As per the sources at the Insurance Information Bureau (IIB), only 6.5 to 7 crore vehicles have insurance cover against approximately 18 crore registered vehicles on Indian roads. Government officials have stated that almost 50 per cent of vehicles plying on Indian roads have no valid insurance and a majority of them are two-wheelers.
The Motor Insurance Industry In India | Growth Overview
Motor insurance forms the largest sector of the general insurance industry in India. The car insurance sector is valued at Rs70,000 crore with insurance claims towering at a staggering 1.2 lakh crore nationally. According to a report by Mordor Intelligence; premium from motor insurance in India accounted for approx 39.4per cent of the overall non-life insurance premium in the year 2018. Mentioned in the same report
The Growing Awareness For Motor Insurance
There has been a paradigm shift with concern to motor insurance in India. The recent amendment in the Motor Vehicle Act with revised penalties against violation of possession of a basic TPL policy has contributed to an increase in the sale of motor insurance policies in India. In the case of two-wheelers,
Car Insurers Are Undaunted Despite 2019 Crisis
As per figures released by the IRDAI, general insurance saw a growth of 16.84 per cent compared to 2018. Premium income surged to Rs20,145.46 crore in September 2019 from Rs14,463.60 during the same month in 2018. A major portion of this pie was roped in by motor insurance companies.