Daily Conveyance Benefit Add-on cover in Two-wheeler Insurance

01-02-2025

2025 Budget's Tax Relief & Policy Reforms to Push Two-wheeler EV Demand

Union Budget's tax relief to people earning below ₹12 lakhs and exemption on custom duties on materials used for making lithium-ion batteries is expected to boost electric two-wheeler demand in the Indian market. The first move will improve the purchasing power of people and the latter will make the EVs more affordable by lowering production costs.

27-01-2025

Auto Exports Hit 19% Rise in 2024; Driven by Robust Demand Revival in EMs

Strong demand from emerging markets, like Latin America and Africa, led to a 19% increase in India's automobile exports in 2024, which was driven by two-wheelers, passenger vehicles, and commercial vehicles. The overall shipments rose to 50,98,810 units from 42,85,809 units exported in 2023, as per SIAM data. However, the export of passenger cars fell by 4%.

12-01-2025

Uninsured Two-Wheelers on the Streets Poses Biggest Threat

Two-wheeler fatalities in India rose by 8%, claiming almost 75,000 lives, accounting for 44% of the over 1.68 lakh road accident deaths that year. India has the highest number of road accidents globally, driven by factors like reckless driving and non-compliance with traffic rules. Despite a rising number of vehicles, a significant concern remains the lack of insurance among vehicle owners, with over 60% of vehicles uninsured.

11-01-2025

Private Insurers Raise Motor Commission Payouts by 239%

In FY2024, private sector general insurers in India saw a 239% rise in commission expenses in motor insurance, spending ₹16,578 crore compared to ₹4,890 crore in FY2023. Public sector insurers reported a 31.59% rise, spending ₹3,099 crore. The high commissions led to expensive premiums for policyholders. Public sector insurers had a higher incurred claims ratio at 99.57%, while private players were at 73.30%. The IRDAI expressed concerns over high commissions and is promoting platforms like Bima Sugam to increase transparency and lower rates.

10-01-2025

New Battery Parts Sops: What's in Store for Manufacturers?

The government is considering incentives for battery component manufacturing to support the expanding electric vehicle industry. The Ministry of Heavy Industries is identifying locally-produced components that need financial support. The scheme, similar to existing production-linked incentives, aims to reduce import dependence and strengthen the local ecosystem. The National Programme on Advanced Chemistry Cell (ACC) Battery Storage, launched in 2021, targets 50 GWh of ACC and 5 GWh of Niche ACC manufacturing capacity with a budget of INR 18,100 crore.

15-11-2024

Analyzing The Surge in Auto Sales: A FADA Perspective

India's automobile retail sales rose by 12% year-on-year to 42.88 lakh units during the 42-day festive period, driven by strong demand in passenger vehicles and two-wheelers, according to FADA. Passenger vehicle sales increased by 7%, while two-wheeler registrations grew by 14%. The festive period, from Navratri to 15 days post Dhanteras, saw commercial vehicle sales rise 1% and three-wheeler sales increase 7%. However, tractor sales declined by 2%. The overall automotive registrations last year stood at 38.37 lakh units.

28-10-2024

After Q2 Slowdown, Two-Wheelers See Strong Recovery

The first 25 days of the festival season saw a 10.5% increase in two-wheeler sales, driven by discounts, financing options, new models, and rising incomes. This rise follows a weaker July-September quarter. The domestic two-wheeler market is expected to grow 7-8% in Q3 due to the festival season and good monsoon. Entry-level segment sales have grown 19% due to rural demand. Overall, the two-wheeler market is projected to grow 7-9% in 2024-25, supported by rural demand and government schemes.

07-10-2024

Auto Industry Growth: Rise In Sales This Year

The Indian automobile market grew by 6.55% in the first half of FY25, driven by robust two-wheeler sales. The Federation of Automobile Dealers Associations (FADA) reported 9.08% growth in two-wheelers, 7.58% in three-wheelers, and 1.07% in passenger vehicles. However, commercial vehicle and tractor sales fell. The monsoon negatively impacted auto retail performance. FADA is cautiously optimistic for the festive season but warns of high inventory levels in passenger vehicles. Immediate corrective measures are urged to avoid financial setbacks.

15-09-2024

Helmets and Insurance: New Rules For 2-Wheelers In Delhi

The Delhi High Court ruled that existing rules on mandatory insurance, helmet use, and penalties for non-compliance apply to electric vehicles (EVs). This decision came while dismissing a Public Interest Litigation (PIL) that sought to make insurance compulsory for electric two-wheelers. The court noted that the issues raised were already covered by current laws and criticized the PIL for wasting judicial time. Additionally, the court directed the Delhi government to ensure timely disbursement of EV subsidies and advised the petitioner to exercise diligence before filing such PILs in the future.

10-08-2024

AI in Auto Insurance: Simplifying Your Coverage Process

Artificial Intelligence (AI) is transforming the automotive industry, impacting everything from car design to insurance. The Insurance Regulatory and Development Authority of India (IRDAI) introduced policies like ‘Pay As You Drive’ and ‘Pay How You Drive,’ which use telematic devices to track driving behavior and mileage, influencing premiums. These policies encourage safer driving and offer cost savings. The future of auto insurance is tech-driven, with integrated models and pre-installed telematics, though privacy concerns and regulatory updates remain challenges.