Consumer-centric Innovations In The Motor Insurance Sector Of India

The Policy Bazaar Show is a series that decodes the grey areas of purchasing insurance. Through the 26-episode series, the show will highlight and discuss a magnitude of topics essential to everyone trying to secure their future. From purchasing the right cover to switching policies while shifting jobs, to ensuring a comprehensive child cover, insurance experts deliberate, simplify and, throw light on the complexities of purchasing insurance in India. In the final episode of the Policy Bazaar Show, our eminent host, Vivek Law will be talking to Sajja Praveen Chowdhary, Motor Busines Head, policybazaar.com. They will be discussing the new trends in the motor insurance sector.

The New Trends in Motor Insurance

With the lockdown imposed in India due to the COVID-19 outbreak, the transport industry had taken a setback. With it, the focus of insurance shifted towards the sectors of health and term insurance policies. In recent times, however, with ‘Unlock India’, there has been an upsurge in the demand for motor insurance as well. Since the month of May, there has been an increase in the renewals of vehicle policies. The insurers, in the meantime, have come up with plans that are usage-based and can help the consumer in saving a lot on the premiums.

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The IRDAI has been prompt in making recommendations that the insurance policies are easily accessible and user-friendly for the customers. One such initiative is the Pay-As-You-Use plans that have already been introduced by policybazaar and many other insurers. The customers can avail a plan that is based on a limited distance, which can be chosen by the customer. These plans are added to the regular insurance covers that are bought. However, with the distance-limit plan, the consumer can avail of an extra discount on the premium.

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There are also many innovations that have been implemented in the own damage covers. These covers are a sort of upgrade to the traditional covers that focused on accidental risks, fire risks, and the theft risks. The recent covers focus on the usage of the car, which can be as low as two days a week. The factors that affect the premium rates are the kilometer driven, the number of people driving a car (better premium rates if the car is driven by fewer people), and driving experience. For the year 2020, the focus of insurers will be the own damage policies, as the third party covers remain mandatory by the IRDAI. For the people who are buying cars, the most convenient covers will be the own damage covers and the additional covers which provide benefits like zero depreciation. It is very important to have invoice protection.

For more insights on the new trends in motor insurance, watch the episode.