Mumbai, Nov 27 As private consumption rises in India, tier 2 and 3 cities have emerged as a critical growth engine for motor insurance, driven by increasing vehicle ownership and greater awareness of the importance of insurance, according to a report on Wednesday.
These regions contributed to more than 90 per cent to the number of policies sold and the premium amount in the festive season this year, as per data InsurTech platform Turtlemint.
Turtlemint said it issued over 4 lakh motor insurance policies through its extensive network of insurance advisors, marking an almost 2 times increase in sales compared to the same period last year.
The period from August to October resulted in an increase in the total premium for motor insurance by 2.3 times from last year.
While Jaipur saw a 191 per cent growth in motor insurance premium, Indore saw 31 per cent and Lucknow 15 per cent, the data showed.
“India’s insurance sector is on a growth trajectory, with motor insurance being a substantial contributor. We are already witnessing a YoY growth of 85 per cent in our motor policy sales,” said Dhirendra Mahyavanshi, Co-founder & CEO of Turtlemint.
The festival season, known for record vehicle sales fuelled by discounts and offers, coincides with a sharp rise in motor insurance purchases as well. For those looking to tap into this growing market, the opportunity to sell motor insurance has never been bigger, said the report.
Last week, credit rating agency ICRA revised the outlook for the wholesale volume growth for the Indian two-wheeler industry to 11-14 per cent in FY25, led by steady replacement demand and an improvement in rural demand on the back of a healthy monsoon precipitation.
In the month of October, total two-wheeler sales in the country surged by a robust 14.2 per cent to 21.64 lakh units, compared to 18.96 lakh units in October 2023.
Passenger vehicle sales, including cars and SUVs, also increased to their highest-ever monthly level of 3.93 lakh units in October, according to latest data by the Society of Indian Automobile Manufacturers (SIAM).
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