Motor cover renewals up 6x on fines
Chennai: As traffic violators start paying hefty penalties under the new Motor Vehicles Act 2019, renewal of vehicle insurance policies has a seen an increase of more than 50% in the last few days. In some cases, growth has surged as much as six times.
“We are experiencing an average increase of 3-4 times in insurance renewal enquiries for old vehicles. Consumers are definitely taking cognizance of the motor vehicles act amendments and wanting to comply with the same. The encouraging part is to see traffic from both online and offline distribution platforms,” said Sanjay Datta, head (underwriting and claims) at ICICI Lombard General Insuranhead of motor business at Bajaj Allianz General Insurance, said. The insurer has recorded an increase of approximately 60% in the renewals of motor cover policies among bikers in the last few days.
Under the new provisions, driving an uninsured vehicle will lead to a fine of Rs 2,000 and/or imprisonment up to three months for the first offence, and a fine of Rs 4,000 and/or imprisonment up to three months for the second offence. Earlier, a penalty of Rs 1,000 and/or punishment up to three months was levied on the same default. Industry estimates suggest that motor insurance penetration among vehicle owners stands at 35-40% for twowheeler segment, 65-70% for passenger cars and 85% for commercial vehicles.
Till Aug 31 After Sept 1 10,000 60,000