,Hyderabad,Dec 09:
Uninsured vehicles as a percentage of vehicles on road in India for FY 18-19 remained at a high of 57% which has increased from FY 2017-18 by 3% and in 15 States, more than 60% of the vehicles were uninsured thus showing a slight increase over the previous FY.
According to the Motor Annual Report-2018019, by the Insurance Information Bureau of India(IIB), the bulk of the uninsured vehicles are Two Wheelers with the un-insurance being as high as 66%.
There were 15 states which had uninsured vehicles to the extent of more than 60%.
Maharashtra is the leading state in terms of total premiums collected from Motor business, followed by Tamil Nadu, Uttar Pradesh,Karnataka, Gujarat and Kerala.
The bulk of the uninsured vehicles are Two Wheelers with the un-insurance being as high as 66%.
For the financial year 2018-19, total death claims on account of motor insurance paid by the domestic general insurers was Rs. 9,01,207 and for Injury claims it was Rs. 2,51,094 which showed an increase over FY 2017-18.
The highest average for death claims was in Kerala,the seventh largest motor insurnace market, at Rs. 12,13,671 and lowest in Bihar at Rs 6,14,306.
Kerala has nearly 86% of the total TP claims in the form of injury whereas Bihar has nearly 80% of the third party (TP) claims due to Death and for Jharkhand it is nearly 77.8%, consistent from the previous FY.
Even States like Uttarakhand,Uttar Pradesh, Arunachal Pradesh,Mizoram,Punjab and West Bengal have a major portion, more than 60%, of their TP claims on account of death.
The average claim paid for Death claims that are settled in FY 2018-19 was Rs. 9,01,207and for injury claims it was Rs. 2,51,094. The highest average for Death claims was in Kerala, at Rs. 12,13,671 and lowest in Bihar at Rs 6,14,306.
The Total number of TP claims reported was around 3.25 lakhs for the current FY. Overall Tamil Nadu, Kerala,Karnataka, Maharashtra, Madhya Pradesh, Rajasthan and Uttar Pradesh together contributed 2/3 of the total TP Claims reported in the country in FY 2018-19.
In case of total premium, Private Car contributes 43%, Two Wheelers 12%, Goods Carriers contribute 28%, Passenger Carriers contribute 12%
and the rest is from others.
69% of the OD Premium is derived from Private Car, Two Wheelers contribute 11%, Goods Carriers contribute 11% and Passenger Carriers contribute 5%.
States contributed approximately 50% of the total motor insurance policies written.
In all the major States the OD premium rate for private car is around 1.8% and the rate for Two Wheelers is around 1.25% which has shown a slight reduction over FY 17-18.
The OD rates at 1.8% for Private Cars and 1.25% for Two Wheelers for the Industry as a whole, showed a slight reduction over FY 2017-18.
Around 57% of the comprehensive policies carried No Claim Bonus discount in them.
The average Own Damage (OD) premium (excluding Long Term Policies) for Private Cars is Rs. 7,645 whereas for Two Wheelers the same is Rs. 502. For Goods Carrying Vehicles, the average OD premium is Rs. 5,904 and for Passenger Carrying Vehicles (Other than 3 wheelers) it is Rs 6,331.
Private cars constitute 64% of the total settled OD claims in terms of number with a median claim amount of Rs.14,584, which has shown a increase of 5% over the previous year. Two wheelers occupy a share of 27.9% of the total number of claims settled with a median claim amount of Rs 5,298.
The mean paid amount for both the classes was at Rs. 28,580 and Rs. 7,892 respectively. This indicates that mean amount has increased for Private Cars whereas it has decreased for Two Wheelers, both nominally compared to FY 2017-18.
Kunnel Prem, Chief Executive Officer,Insurance Information Bureau of India said “Today the General Insurance industry faces many challenges on account of plying of uninsured vehicles, in which data intervention can play an effective role. The menace of uninsured vehicles plying in the country despite statutory Third Party insurance for vehicles is quite dangerous. To address this concern, a concerted effort has been initiated at IIB to tackle it through technology intervention and awareness programs.''
The total Gross Direct Premium for the Indian general insurance industry during Financial Year (FY) 2018-19 was Rs. 1,69,448 Crores as against Rs. 1,50,662 Crores in FY 2017-18 representing an annual growth of nearly 12.47%. The contribution of Motor segment was nearly 38.08 % at Rs. 64,522.35 Crores giving an annual growth rate of 9%.