The primary objective of car insurance is to protect the vehicle from any accident, theft or any other physical damage. It provides financial protection to the car. Similarly, Indian auto insurance covers any loss or damage caused to your vehicle due to natural and man-made calamities. It is a compulsory requirement for every car. While having tie-ups with the major leading automobile manufacturers, these motor insurance companies in India offer instant auto quotes to their customers.
Car Insurance in India
As per the Insurance Regulatory and Development Authority (IRDAI), a three-year insurance policy for cars is mandatory at the time of registration of the vehicle, irrespective of the type, i.e., personal or commercial. A TPL or (Third Pary Liability) means cover for death, injury, or property damage which involves a third party. In India, the law makes it mandatory to have insurance that covers the third party risk, stated by the Motor Vehicle Act, 1988.
Being the largest sector of the entire general insurance industry in India, motor insurance has seen enormous growth in recent years.
- While the sector of car insurance has been valued at Rs 70,000, there have been insurance claims of around Rs 1.2 lakh crore at the national level.
- As per a Mordor Intelligence report, in the year 2018, approximately 39.4 per cent of the total non-life insurance premium came from the motor insurance companies in India.
- As per a report by IRDAI, there has been a growth of about 16.84 per cent in general insurance since 2018. In September 2019, the premium income increased from Rs 14,463.60 to Rs 20,145.46. The majority of this surge was due to the motor insurance companies in India.
Revolution in the sector of Indian Car Insurance
- Motor insurance companies in India have been revolutionizing for a long time. There has been a growing awareness for insurance of motor vehicles which has led to an increase in the claimed percentage.
- The Indian motor insurance companies are building tie-ups with various national and multi-national car manufacturing companies and their service centres. Thus, they claim to offer a better car repair experience under insurance. The technological development in these companies also helps in providing better services.
- Motor insurance companies in India are now able to provide better quality repairs at less cost due to these multi-brand centres. The multi-brand car services provide quality assurance at better prices as compared to authorized dealerships.
- The growing awareness among people regarding motor insurance has been shifting with time. A recent amendment in the Motor Vehicle Act includes revised penalties against a person who fails to possess a necessary TPL Policy. This has led to an increase in motor insurance policy sales in India.
- Another factor that is leading to a revolution in the Indian Insurance Industry is innovative startups. The efficiency of the industry is improving through the use of new-age technology. An increase in the use of Original Equipment Supplier (OES) and a centralized Original Equipment Manufacturer (OEM) has helped companies in achieving excellence and providing quality services.
This article highlights how motor insurance companies in India are revolutionizing and changing with time. These companies have grown to be the most significant industry in the insurance sector in India. The benefits of motor insurance include financial protection against any damage, and there is a growing awareness among people about this.