Chennai: Robust festive demand and a gradual rise in freight volumes revives motor insurance business in October, 2020. After a muted business in the first half, impacted by the outbreak of Covid-19 pandemic, insurers say fear of contracting the virus through public transport has led to surge in mid-segment cars and two-wheelers sales, further leading to revival in motor insurance business.
For the industry, premium collections were driven by a 20% yoy growth in private car business and a 15% yoy growth in two-wheeler business. “The share of business from commercial vehicles is down from 30% to 15% as compared to March levels. However, the share of business from private cars and two-wheelers has filled the gap,” says Aditya Sharma, business head of motor, Bajaj Allianz General Insurance.
SBI reported a 48% yoy growth in motor led by 94% yoy increase in purchase of third party (TP) policies.