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 45
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 70150%, 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 Ltd
2. HDFC Ergo
3. ICICI Lombard
4. TATA AIG
5. Bharati Axa
6. Oriental Insurance
7. Mahindra Insurance
8. Future Generali
9. PNB Motor Status
10. 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 owners 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
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:

Motor Insurance Premium for the past three years in

India
Year
2010-2011
2011-2011

Motor Insurance (Rs in Crores)

18,407.29
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

Motor Insurance for past three years

50000000
45000000
40000000
35000000
30000000

No of Policies

25000000
20000000
15000000
10000000
5000000
0
2008-2009

2009-2010

2010-2011

Motor Insurance Premium for the past three years in

India
16000
14000
12000
10000
8000

Column2

6000
4000
2000
0
2008-2009

2009-2010

2010-2011