Irdai in pact with Maharashtra to boost motor insurance

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August 23, 2019 7:19 AM

Motor insurance, which includes third party and ow damage combined has a market share of around 38% has been seeing low growth largely due to the poor auto sales.

Irdai, Maharashtra, motor insurance, insurance, CII, insurance policy, insurance companyMarket participants say that, despite strong growth in July motor insurance segment continues to witness dip in premiums largely due to the fall in the car sales.

Insurance Regulatory and Authority of India (Irdai) has tied up with state government on a pilot project to boost motor insurance. Market participants say that, despite strong growth in the month of July motor insurance segment continues to witness dip in premiums largely due to the fall in the car sales in India.

Speaking at the CII Insurance and Pensions Summit, Subhash C Khuntia, chairman of Irdai said, “Traditionally, motor insurance comprised nearly one-third of the total insurance premiums in India. This year, however there is little bit of difficulty with respect to sale of motor insurance, as large number of policies are not getting renewed.” He also added that as a pilot project, Irdai will get in touch with state governments to contact uninsured vehicle owners so that they can send communications to them stating that a motor policy is compulsory.”

Motor insurance, which includes third party and ow damage combined has a market share of around 38% has been seeing low growth largely due to the poor auto sales. Market participants say that, despite strong growth in July motor insurance segment continues to witness dip in premiums largely due to the fall in the car sales.

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