Research conducted by COCO by DHFL General Insurance has made a dismal revelation about car insurance policyholders in Delhi. Turns out that 90% of people do not renew their car insurance policies before being challaned by traffic police. The total base of this survey is 1025 respondents across three key metro cities, Mumbai, Delhi and Bangalore. According to the COCOBarometer conducted in Mumbai, Delhi, and Bengaluru, approximately 74% of the respondents have an active car insurance policy.
The remaining 26% with a lapsed policy, and claim that their insurance company failed to remind them about the policy renewal or they just forgot to renew it on time. The study reveals that 27% of Bangaloreans do not blame the insurance companies and take the onus on themselves to be aware of insurance renewals and lapses. A striking contrast can be witnessed in Mumbai wherein 44% Mumbaikars hold the insurance provider responsible for not reminding them, followed by Delhi at 36%.
Cause of lapse: 19% of respondents claim that paying a fine is cheaper than buying insurance
Every four in 10 respondents with lapsed insurance have been caught by the traffic police. The percentage of respondents being caught by traffic police is most in Delhi (43%) and least in Mumbai (33%). Yet, 1 in every 4 respondents didn’t buy a policy even after being caught by the traffic police. Consumers are unaware of the fact that fines cost much more than an insurance policy, and as an insurer trying to create awareness about this, we have even created campaigns around this misconception.
Factors for buying insurance: ‘Law’ and ‘concern for car’ are equally important while obtaining insurance. This particular factor further varies in Mumbai, Delhi, and Bengaluru.
Claims settlement: Only 6% claimed that insurance companies do not pay claims as promised.
4 in every 10 respondents claimed that there have been instances where they have not claimed insurance and the reasons for not claiming ranged from ‘fear of losing No Claim Bonus (NCB)’ to ‘hassles of claims documentation’. However, out of those who claimed, only 6% cited that insurance companies do not pay the claim as promised.
Types of car insurance purchased: ‘Comprehensive with Zero-Depreciation’ is the most opted policy for car insurance with 70% of the car owners availing it
With respect to car insurance coverage, almost 9 in every 10 car owners in Mumbai, Delhi, and Bengaluru are aware of the parts that are covered under their insurance policy. According to the COCOBarometer, ‘Comprehensive with Zero-Depreciation’ is the most opted policy for car insurance with 7 in every 10 car owners availing it. Additionally, the COCOBarometer also revealed that ‘Third-Party Only’ was the least preferred policy for car insurance.
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Preferred modes of buying insurance: 6 in every 10 respondents prefer buying or renewing their car insurance policy ‘online directly from the company website’
Car owners across Mumbai, Delhi, and Bengaluru are willing to purchase insurance via online portals, provided they get better prices or discounts and better clarity on coverage and features of the policy. A mere 2% claim that they don’t trust online platforms. Respondents choose the online route as it is hassle-free, involves less paperwork, and they feel that the internet is filled with valuable information on the insurance industry.
Awareness of insurance add-ons: 8 in every 10 of the insurance buyers are aware of the add-ons
Zero Depreciation at 73%, Engine Protector at 54%, Personal Accident for Owner at 56% and No Claim Bonus (NCB) Secure at 52% seem to be the most popular add-ons among policyholders.
