INDIA MOTOR INSURANCE MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Indian Motor Insurance Market is segmented by Motor Vehicle Insurance by Types (Third party only, Third party fire & theft insurance, Comprehensive insurance), Motor Vehicle Insurance Market by Application (Commercial and Personal)

Market Snapshot

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Study Period: 2016 - 2026
Base Year: 2021

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Market Overview

India Motor Insurance Market registered a CAGR of 11.36% over the period, 2012 – 2018.

  • Premiums from motor insurance accounted for approx 39.4% of the overall non-life insurance premiums in 2018, due to the rising demand from middle class families.
  • Goods and services tax (gst) rate cut may boost insurance renewals of commercial vehicles. The reduction in gst rate for third-party motor insurance of commercial vehicles to 12% from 18% may improve renewal rates for the segment.

  • The advent of a new year always comes with promise, and 2019 has the potential to be a very promising year for motor insurance in India. The world's fastest growing large economy with a burgeoning pool of customers, strong macro-economic factors and a robust financial ecosystem make the ideal backdrop to take the motor insurance market to the next level. The traditional Indian family has undergone a significant evolution over the last few years. The expectations of young customers from service providers are pushing companies across market to work smarter, deliver faster and engage better to not only to be preferred but to be loved by this set.

Scope of the Report

Indian Motor Insurance Market covers different segment of Motor Vehicle Insurance by Types like Third party only, Third party fire & theft insurance and Comprehensive insurance, with various application on Motor Vehicle Insurance Market like Commercial and Personal.

Motor Vehicle Insurance by Types
Third party only
Third party fire & theft insurance
Comprehensive insurance
Motor Vehicle Insurance Market by Application
Commercial
Personal

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Key Market Trends

Automobile Industry Driving Motor Insurance Market

In FY18, Motor insurance constituted 39.40% of the non-life insurance market in India. Increase in demand of motor insurance as a by-product of rapidly expanding auto industry. With strong growth in the automotive industry over the next decade will be a key driver of motor insurance. Automobiles sales in India has increased at 7.01% CAGR between FY13-18 to reach 24.97 million vehicles. Motor insurance accounted for 36.5% of non-life insurance premiums earned in India in Apr-Sep 2018. The Insurance Regulatory and Development Authority (IRDA) draft envisages a 10–80% rise in premium rates for the erstwhile loss-making third party motor insurance. The IRDA has indicated that it would disband the practice of annual fixing of premium for third party (TP) insurance for motor vehicles from 2020-21. This would pave the way for insurance companies to quote their own premiums, which may bring it down because of stiff competition.

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Automotive telematics insurance industry

The telematics for vehicles started for tracking of stolen cars with the help of radio frequency communication using unlicensed frequency bands. Telematics are information and telecommunication products that combine computers and telecommunication services for transferring large amounts of data in vehicles in real-time. The Automotive industry is witnessing a phase of digital revolution. Over the next few years, automobiles will be completely transformed into communication objects. Therefore, the telematics market is expected to grow at a promising rate due to the rising consumer demands for staying connected 24*7 even while travelling. Russia and India have a joint venture to provide navigation services in India, which includes setting up the telematics terminals and portable navigation devices. The market share and number of policy has been seen a significant rise in India and will be continue to do so with inclusion of technologies.

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Competitive Landscape

The Indian Motor Insurance Market is highly competitive with the presence of major Global players. The market presents opportunities for growth during the forecasted period which is expected to further drive market competition. With the presence of multiple players holding a significant share the market has observed a competitive environment.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the study

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Technological Innovations

    4. 4.4 Telematics Re-structuring the Industry

    5. 4.5 Industry Policies and Government Regulations

    6. 4.6 Value Chain / Supply Chain Analysis

    7. 4.7 Insights on Fee Structure and Operating Cost

  5. 5. MARKET SEGMENTATION

    1. 5.1 Motor Vehicle Insurance by Types

      1. 5.1.1 Third party only

      2. 5.1.2 Third party fire & theft insurance

      3. 5.1.3 Comprehensive insurance

    2. 5.2 Motor Vehicle Insurance Market by Application

      1. 5.2.1 Commercial

      2. 5.2.2 Personal

  6. 6. COMPANY PROFILES

    1. 6.1 ICICI Lombard General Insurance Company Limited

    2. 6.2 Bajaj Allianz General Insurance Company Limited

    3. 6.3 Tata AIG General Insurance Company Limited

    4. 6.4 HDFC ERGO General Insurance Company Limited

    5. 6.5 The New India Assurance Co. Ltd.

    6. 6.6 The Oriental Insurance Co. Ltd.

    7. 6.7 Bharti AXA General Insurance Company Ltd.

    8. 6.8 United India Insurance Co. Ltd.

    9. 6.9 Reliance General Insurance Company

    10. 6.10 Universal Sompo General Insurance Company Limited*

  7. *List Not Exhaustive
  8. 7. FUTURE OF THE APAC MOTOR INSURANCE MARKET

  9. 8. APPENDIX

    1. 8.1 Growth in Auto Industry

**Subject to Availability

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Frequently Asked Questions

The India Motor Insurance Market market is studied from 2016 - 2026.

The New India Assurance Co. Ltd., HDFC ERGO General Insurance Company Limited, Tata AIG General Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, ICICI Lombard General Insurance Company Limited are the major companies operating in India Motor Insurance Market.

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