Half of India's vehicles still uninsured, says New India Assurance chief
Despite data availability, nearly half of India's vehicles are uninsured, posing risks, according to New India Assurance CMD Girija Subramanian. She advocates for revised third-party motor insurance premiums, unadjusted for years despite rising court awards. New India Assurance aims to regain market share in private car and two-wheeler segments and expand its digital presence through partnerships and investments.
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Nearly half of India's automobiles remain uninsured, posing significant risks to accident victims and the broader insurance ecosystem, despite the availability of data on vehicle insurance, reported TOI citing Girija Subramanian , CMD of New India Assurance , the country's largest general insurer.'Only 52% of vehicles are insured. Although the data exists, enforcement is lacking,' TOI quoted Subramanian as saying in an interview. She called for a revision in third-party motor insurance premiums , which haven't been updated in five to six years, despite rising court awards linked to inflation.In 2018, the Supreme Court mandated long-term third-party cover for new vehicles to curb the issue of uninsured vehicles. The Insurance Regulatory and Development Authority IRDAI ) followed up with rules requiring three-year third-party cover for new cars and five years for two-wheelers. Yet, the number of active motor insurance policies still lags behind total vehicle registrations.To strengthen its position in the competitive motor insurance space, New India Assurance is aiming to regain market share, particularly in the private car and two-wheeler segments. These are traditionally high on commission costs but lower on claims than commercial vehicles, which dominate the company's current portfolio.'We'll be working on this segment-wise and hope to crack it this year,' said Subramanian.The insurer is also expanding its digital footprint by partnering with platforms like PhonePe and investing in the IRDAI-backed insurance marketplace, Bima Sugam. 'It's a work in progress. We're seeing traction but plan to scale up,' she added.(With inputs from TOI)
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