India Motor Insurance Market Size
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 11.96 Billion |
| Market Size (2029) | USD 19.48 Billion |
| CAGR (2024 - 2029) | 10.25 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
India Motor Insurance Market Analysis
The India Motor Insurance Market size in terms of gross written premiums value is expected to grow from USD 11.96 billion in 2024 to USD 19.48 billion by 2029, at a CAGR of 10.25% during the forecast period (2024-2029).
A growing population of 1.38 billion and the soaring aspirations of India’s populace present the opportunity for motor insurance companies to tap large volumes of prospective consumers. Driven by a pick-up in health and motor insurance segments, the non-life insurance industry has grown by 16% in the current year compared to 11% in the previous year. India's motor insurance market is experiencing rapid growth, driven by a dynamic automotive sector. The country's economy is steadily expanding, resulting in an increase in disposable income and a growing preference for personal transportation. This has enabled India to become the fourth-largest automotive sales market in the world. Government initiatives such as FAME II, PLI Scheme for Semiconductor Manufacturing, and Advanced Chemistry Cell have further contributed to the growth of the automobile sector, which is, in turn, contributing to the insurance market's growth. As a result, India's motor insurance industry has registered a growth in non-life insurance premiums earned. Additionally, the use of Artificial Intelligence (AI), the Internet of Things (IoT), Machine Learning, and Telematics has risen exponentially, allowing companies to digitally transform their businesses and adapt to the changes in customer behavior.
Additionally, the pandemic expedited digital adoption, and most agents felt customers were more willing to use portals/apps post-pandemic. Further, the pandemic increased the insurance penetration rate and triggered awareness of insurance and demand for protection products.
India Motor Insurance Market Trends
Rise in Sales of Automobiles Indicates a Positive Growth of Motor Insurance Industry
The Indian automobile industry registered its highest-ever annual domestic passenger vehicle sales last year. Passenger vehicle sales were up 6 percent year-on-year, with Utility Vehicles (UVs) being the driving force. The total motor vehicle units sold in the country are 23 percent higher than the previous year. Major four-wheeler companies like Tata Motors, Kia India, and Toyota Kirloskar Motor recorded the highest growth in annual sales. The growth in sales numbers highlights the increasing demand for cars in India. Moreover, India overtook Japan as the world's third-largest light vehicle market last year, led by a strong surge in demand for personal mobility and last-mile deliveries post-pandemic. This increasing trend of automobile sales has risen in the India Motor Insurance Industry.
Indian Motor Insurance is Propelled by Increase in Digitalization
The online insurance segment in India has the most rapid growth in the Indian motor insurance market over the forecasted period. This is due to the ease of purchasing online insurance policies, the availability of discounts, offers, and plans from aggregators, and the increasing penetration of the internet, which has further contributed to the segment's growth. Additionally, the initiative the Insurance Regulatory And Development Authority took to allow insurers to carry out video-based customer service confirmations has also contributed to the expansion of the online insurance market.
Online marketplaces give Indian consumers a wide range of financial products so they can make informed decisions quickly without worrying about being scammed or misled. Insurance policies are especially appealing because online marketplaces give consumers all the necessary info, like mandatory deductibles and no-claim bonuses, claims settlement ratios, etc. Plus, most online marketplaces make it easy to pay for insurance policies with advanced digital payments. Consumers can pay for procedures with any digital payment, like debit cards, credit cards, digital wallets, or direct bank transfers. With cashback and payment plans, consumers can buy insurance policies on some of the best online marketplaces in India.
India Motor Insurance Industry Overview
The Indian Motor Insurance Market is highly competitive with major global players. The market has observed a competitive environment with multiple players holding a significant share. Some players include The New India Assurance Co. Ltd., HDFC ERGO General Insurance Company Limited, Tata AIG General Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, and ICICI Lombard General Insurance Company Limited, among others. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and tapping new markets.
India Motor Insurance Market Leaders
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The New India Assurance Co. Ltd.
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HDFC ERGO General Insurance Company Limited
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Tata AIG General Insurance Company Limited
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Bajaj Allianz General Insurance Company Limited
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ICICI Lombard General Insurance Company Limited
*Disclaimer: Major Players sorted in no particular order
India Motor Insurance Market News
- February 2023: New India Assurance (NIA) launched a ‘Pay as You Drive’ (PAYD) policy, which offers a comprehensive motor insurance policy that charges a premium based on vehicle usage. The policy has two components- Third Party cover and own-damage cover.
- June 2022: Edelweiss General Insurance introduced the country's first telematics-based motor insurance called 'SWITCH.' This on-demand policy generates a real-time driving score and dynamically rates the premium. Moreover, it detects motion and automatically activates insurance when the vehicle is driven, making it convenient and hassle-free for users.
India Motor Insurance Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definitions
- 1.2 Scope of Study
2. RESEARCH METHODOLOGY
3. EXCEUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Increase in Disposable Income and a Growing Preference for Personal Transportation
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4.3 Market Restraints
- 4.3.1 Heavy Reliance on Independent Agents
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4.4 Market Opportunities
- 4.4.1 Technology Adoption by the Insurance Companies
- 4.4.2 Government Initiatives can be Used to Expand the Horizons of the Sector
- 4.5 Insights on Zonal And State-wise Motor Insurance Business in India
- 4.6 Insights on Regulatory Trends Shaping the Market
- 4.7 Insight on Impact of Technology and Innovation in Motor Insurance Market
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4.8 Porter's Five Forces Analysis
- 4.8.1 Bargaining Power of Suppliers
- 4.8.2 Bargaining Power of Buyer
- 4.8.3 Threat of New Entrant
- 4.8.4 Threat of Substitute Product
- 4.8.5 Intensity of Competitive Rivalry
- 4.9 Insights on Performance of Motor Insurance in India (Claims Incurred Ratio, Commission Expense, Retention Ratio etc.)
- 4.10 Impact of COVID-19 on Market
5. MARKET SEGMENTATION
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5.1 By Motor Insurance Type
- 5.1.1 Own Damage
- 5.1.2 Third Party
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5.2 By Application
- 5.2.1 Commercial Motor Insurance
- 5.2.1.1 Light Weight Four Wheelers
- 5.2.1.2 Heavy Weight Four Wheelers
- 5.2.1.3 Other Commercial Motors
- 5.2.2 Private Motor Insurance
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5.3 By Distribution Channel
- 5.3.1 Individual Agents
- 5.3.2 Brokers
- 5.3.3 Banks
- 5.3.4 Online
- 5.3.5 Other Distribution Channels
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5.4 By State
- 5.4.1 Maharashtra
- 5.4.2 Tamil Nadu
- 5.4.3 Karnataka
- 5.4.4 Uttar Pradesh
- 5.4.5 Gujarat
- 5.4.6 Other States
6. COMPETITIVE LANDSCAPE
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6.1 Company Profiles
- 6.1.1 Lombard General Insurance
- 6.1.2 Bajaj Allianz General Insurance
- 6.1.3 Tata AIG General Insurance
- 6.1.4 HDFC ERGO General Insurance
- 6.1.5 New India Assurance Co Ltd
- 6.1.6 India Insurance
- 6.1.7 The Oriental Insurance Co Ltd
- 6.1.8 Bharati AXA General Insurance
- 6.1.9 Reliance General Insurance
- 6.1.10 IFFCO Tokio General Insurance*
- *List Not Exhaustive
7. FUTURE MARKETTRENDS
8. DISCLAIMER & ABOUT US
** Subject To AvailablityIndia Motor Insurance Industry Segmentation
Motor insurance is a form of insurance that provides financial protection for the owner of a vehicle, such as a car, truck, motorcycle, or other road vehicle. It is primarily intended to protect against bodily injury or damage caused by traffic accidents and any liability that may arise from incidents occurring within the vehicle. A complete background analysis of the India Motor Insurance Market, market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles are covered in the report.
The India Motor Insurance Market is segmented by motor insurance type (own damage, third party), by application (commercial motor insurance (light motor vehicle, heavy motor vehicle, other commercial motors), private motor insurance), by distribution channel (individual agents, brokers, banks, online, others), by state (Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, Gujarat, other states).
The report offers market size and forecasts for the Indian motor insurance market in revenue value (USD) for all the above segments.
| By Motor Insurance Type | Own Damage | |
| Third Party | ||
| By Application | Commercial Motor Insurance | Light Weight Four Wheelers |
| Heavy Weight Four Wheelers | ||
| Other Commercial Motors | ||
| By Application | Private Motor Insurance | |
| By Distribution Channel | Individual Agents | |
| Brokers | ||
| Banks | ||
| Online | ||
| Other Distribution Channels | ||
| By State | Maharashtra | |
| Tamil Nadu | ||
| Karnataka | ||
| Uttar Pradesh | ||
| Gujarat | ||
| Other States |
India Motor Insurance Market Research Faqs
How big is the India Motor Insurance Market?
The India Motor Insurance Market size is expected to reach USD 11.96 billion in 2024 and grow at a CAGR of 10.25% to reach USD 19.48 billion by 2029.
What is the current India Motor Insurance Market size?
In 2024, the India Motor Insurance Market size is expected to reach USD 11.96 billion.
Who are the key players in India Motor Insurance Market?
The New India Assurance Co. Ltd., HDFC ERGO General Insurance Company Limited, Tata AIG General Insurance Company Limited, Bajaj Allianz General Insurance Company Limited and ICICI Lombard General Insurance Company Limited are the major companies operating in the India Motor Insurance Market.
What years does this India Motor Insurance Market cover, and what was the market size in 2023?
In 2023, the India Motor Insurance Market size was estimated at USD 10.73 billion. The report covers the India Motor Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the India Motor Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
India Motor Insurance Industry Report
Statistics for the 2024 Motor Insurance India market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Motor Insurance India analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
