The automotive industry in India witnessed a double-digit growth between 1st April 2017 and 31st March 2018*. India achieved a record sales growth of 9.2% during the last financial year and the total sales amounted to 4.02 million units*. Consequently, India surpassed Germany as the fourth largest automobile market in the world and stands right behind the world leaders like China, US, and Japan. These statistics are inclusive of passenger and commercial vehicles sold between April 2017 and March 2018.
Clearly, the last financial year was a landmark in the history of automobile sales in India. This growth can be largely attributed to the rapid improvement in the rural economy. According to industry analysts, India is expected to emerge as the world’s third-largest passenger-vehicle market by 2021. Mirroring the boom in the automotive industry, the Indian Motor Insurance market has grown exponentially.
Motor Insurance or Vehicle Insurance covers all financial risks that emerge from driving a vehicle. In India, having a third party Motor Insurance is mandatory by law and this, in turn, has proved to be a catalyst in the growth of the auto insurance market. Furthermore, the introduction of affordable Motor Insurance policies with wide coverage is predicted to stimulate market growth in the near future. Increased traffic and growing road mishaps are some other reasons for the growth of the auto insurance market.
The Motor Insurance market is also gaining popularity due to the implementation of enhanced analytics tools to reduce fake claims. Insurance companies are using improved tools like big data analytics and geospatial analytics to reduce losses caused by fraud claims. Other contributing factors to vehicle insurance market comprise growing costs of vehicle repairs, the high cost of claims and unsafe driving practices due to which there may not be any decline in growth for the Motor Insurance industry in the future. The growing employment rate and growing salaries are expected to increase the number of vehicles on the road. This can in turn lead to a greater number of road accidents and lead to higher expenses which ultimately increases the need for Motor Insurance. Moreover, due to the availability of Motor Insurance online, buyers can get their vehicles insured from the comfort of their home or on the move.
If we go by the statistics, driving is only getting riskier by day and hence the need for Motor Insurance is expected to grow accordingly. As a vehicle owner, these statistics highlight the importance of having a comprehensive insurance coverage for your vehicle. If you don’t have a comprehensive motor insurance policy yet, now is the right time to get it. A Vehicle Insurance plan online with Finserv MARKETS comes with a wide coverage and 24×7 claim assistance.
“Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!”