Motor Insurance Premium for the past three years in India

Current Indian Automobile Insurance Industry.

Auto insurance provides defence against loss due to theft or traffic accidents. In the last 4–5 years, the number of passenger cars has increased substantially. This trend is likely to continue due to strong growth in the auto segment resulting from an increase in consumer income levels. Auto insurance consists of two categories in India: third-party liability and auto own damage. Auto insurance has been a loss making business because of low pricing and very high-claim pay-outs. But recently, the prices have increased by 70–150%, which would help to minimize losses. The auto own damage category, which accounted for 70% of the business in FY07, has been de tariffed since January 2007.

The top 10 car insurance companies in India

1. United India Insurance Ltd2. HDFC Ergo3. ICICI Lombard 4. TATA AIG5. Bharati Axa6. Oriental Insurance 7. Mahindra Insurance 8. Future Generali9. PNB Motor Status10. Axis Motor Insurance

MOTOR INSURANCE IN INDIA In U.K, 1st Motor car was introduced in 1894 in 1895 1st Motor policy only third Party liabilities was introduced in 1899, accidental damage to car was added (Comprehensive Insurance) in 1903 Car and General Insurance Company was established, mainly to transact motor insurance. Practice in India normally follows that of England. Motor Vehicles Act (MAV) was Passed in the year 1939.Complulsory Third Party Insurance was passed on 1st July 1946. Motor Vehicles Act 1988 replaced the MAV 1939 and is effective from 1st July 1989. In India, motor insurance is an important part of the rules of the road. Therefore, it is Necessary for every owner to get his vehicle insured. According to the Motor Vehicle Act 1988, every vehicle plying on the road or in public areas in India must be insured for the liability towards third party. It is the vehicle owner’s choice to get a comprehensive policy which includes the third party liability coverage. If caught without a valid insurance policy for the vehicle, the owner or the driver can be penalized for violation of the law. But though The TPL is compulsory by some studies the compliance is poor with an estimated 50 of vehicles not recovered. Presently, Motor Insurance in India accounts for about 41 present of the gross

Motor Insurance Premium for the past three years in India

Insurance premiums written in the Indian non – life market, or over Rs.14566 Crores with more than 4 Crore polices, which makes it the largest non-life insurance business today. The share of Motor Insurance in General Insurance is:

Year Motor Insurance (Rs in Crores)2010-2011 18,407.292011-2011 24,175.91

Growth of Motor Insurance in India.The insurance sector is one of the growing sectors at the speed rate of 10% - 15%.The motor sector mandatory as per law & due to fast growth rate of motor vehicles, the motor insurance is also growing in speed. The number motor vehicles insurance has grown up by 46% & premium has grown to 55% in two years.As the table below, the motor car insurance in the year 2008-2009 was about Rs 3 crore which fell down about Rs 2 crores & in the year 2010-2011, the motor insurance increased to about Rs 4.5 crores

2008-2009 2009-2010 2010-20110

5000000

10000000

15000000

20000000

25000000

30000000

35000000

40000000

45000000

50000000

Motor Insurance for past three years

No of Policies

Motor Insurance Premium for the past three years in India

2008-2009 2009-2010 2010-20110

2000

4000

6000

8000

10000

12000

14000

16000

Total premium Rs in crores