Mumbai
Rising private consumption and vehicle ownership in India’s tier 2 and 3 cities are fueling significant growth in the motor insurance sector, a report revealed on Wednesday. These cities accounted for over 90% of policies sold and premiums collected during the festive season. Turtlemint issued more than 4 lakh motor insurance policies, nearly doubling its sales from the same period last year. Premium collections also surged, increasing by 2.3 times compared to 2023.
Major cities like Jaipur saw a 191% rise in motor insurance premiums, followed by Indore with 31% growth and Lucknow with 15%, according to the report.
“Motor insurance is a key driver in India’s expanding insurance market. We’ve observed an 85% year-on-year growth in our motor policy sales,” said Dhirendra Mahyavanshi, Co-founder & CEO of Turtlemint.
The festive season, traditionally marked by high vehicle sales due to attractive offers, has further boosted motor insurance demand. With two-wheeler and passenger vehicle sales at record levels, insurers are seizing the opportunity to expand in this promising market.
October alone saw two-wheeler sales grow by 14.2% to 21.64 lakh units, compared to 18.96 lakh units in October 2023. Passenger vehicle sales, including cars and SUVs, also hit an all-time high of 3.93 lakh units, according to the Society of Indian Automobile Manufacturers (SIAM).
Credit rating agency ICRA predicts an 11-14% growth in two-wheeler sales for FY25, driven by robust replacement demand and improved rural consumption following a good monsoon.
