Mumbai, November 27 (IANS). Tier 2 and 3 cities are emerging as growth engines for the motor insurance sector due to increasing private consumption in India. This information was given in a report released on Wednesday.
The increasing demand for motor insurance shows that the number of vehicles in the country is increasing and people are becoming aware about insurance.
According to data from insurtech platform Turtlemint, these cities have contributed more than 90 per cent to the number of policies sold and premium amount in the festive season this year.
Turtlemint said the company has issued over 4 lakh motor insurance policies through its large network of insurance advisors, which is almost 2 times more than the same period last year.
Total motor insurance premiums increased by 2.3 times in the August to October period compared to the previous year.
According to the data, motor insurance premium has increased by 191 percent in Jaipur, 31 percent in Indore and 15 percent in Lucknow.
Dhirendra Mahyavanshi, CEO and Co-Founder, Turtlemint, said India’s insurance sector is on a growth path, with motor insurance making a significant contribution. Our motor policy sales are growing by 85 percent year-on-year.
The report further said that discounts and offers lead to record vehicle sales during the festive season. Along with this, there is also an increase in the purchase of motor insurance.
Last week, credit rating agency ICRA revised the Indian two-wheeler industry’s wholesale volume growth outlook to 11-14 per cent for FY2025 on the back of stable replacement demand and improvement in rural demand due to good monsoon rainfall.
Total two-wheeler sales in the country increased by 14.2 percent to 21.64 lakh units in the month of October, whereas it was 18.96 lakh units in October 2023.
Sales of passenger vehicles, including cars and SUVs, also rose to their highest monthly level of 3.93 lakh units in October, according to the latest data from the Society of Indian Automobile Manufacturers (SIAM).
–IANS
abs/
