In the financial year 2018–19, Indian general insurance companies paid out a total of Rs 35,519 crore in claims related to motor insurance, while the total gross underwritten premium was Rs 64,522.35 crore, according to information released by the Insurance Information Bureau of India on Tuesday.
In the fiscal year 2018–19, Indian general insurance companies paid out a total of Rs 35,519 crore in claims related to motor insurance, while the gross underwritten premium was Rs 64,522.35 crore, according to information released by the Insurance Information Bureau of India on Tuesday.
According to the Bureau’s annual report on motor insurance for the fiscal year 2018-19, a total of Rs 35,519 crore worth of motor claims were settled in 2018-19. Out of this amount, Rs 18,262 crore went to fixing damaged vehicles and Rs 14,257 crore went to third party liability.
According to the findings of the study, motor insurance remains the most lucrative segment of business for general insurers, accounting for nearly 40 percent of the total gross underwritten premium, which was calculated to be Rs. 64,522.35 crore and grew by nine percent during the fiscal year 2018-19.
Nearly half of all automobile insurance policies and claims come from just six Indian states: Maharashtra, Tamil Nadu, Uttar Pradesh, Karnataka, Gujarat, and Delhi. These states make up nearly all of the total contributors.
For the financial year 2019 (FY19), the number of uninsured vehicles on Indian roads stayed high at 57%. In 15 states, more than 60% of the vehicles were uninsured, which was a slight increase from the previous fiscal year.
The report said that the average settlement amount for death claims in the fiscal year 2018-19 was Rs 901,207, while the average settlement amount for injury claims was Rs 251,094, which was more than the previous fiscal year, FY 2017-18.
The state of Kerala had the highest average for death claims, coming in at Rs 12,13,671, while Bihar had the lowest, coming in at Rs 614,306.
According to the Insurance Information Bureau, the report takes into consideration all of the claims that were filed and resolved during the 2018–19 fiscal year.
This includes claims that have been settled from the current accident year as well as claims from previous accident years that are being settled in 2018-19.
During the 2018–2019 fiscal year, a total of 3.25 million third-party claims were filed, and nearly 3.05 million of those claims were fully settled.
During the 2018–19 fiscal year, reported motor insurance claims cost a total of Rs 14,257 crore in costs.
When compared to the other states, the Union Territories and the southern states typically have higher averages than the other states.
In comparison to the two financial years prior to this one, there was no change in the amount of time that passed between the reporting and settlement of third party claims.
Both the total number of policies issued and the total amount of premiums distributed in FY19 were very similar to those in FY18.
Private cars contribute up to 69 percent of the own damage or vehicle damage premium, while two-wheelers, goods carriers, and passenger carriers contribute 11 percent, 11 percent, and five percent, respectively.
When it comes to the total premium, private cars contributed 43%, two-wheelers contributed 12%, goods carriers contributed 28%, passenger carriers contributed 12%, and the rest came from other sources.
During the time period being looked at, 57% of vehicles on the road were not insured. This was a 3% increase from the total number of vehicles on the road the year before.
According to the report, two-wheelers make up the vast majority of uninsured vehicles, and the percentage of uninsured vehicles is as high as 66 percent.
There were 15 states where more than 60% of the vehicles on the road lacked insurance coverage.
For the 2018-2019 fiscal year, a total of 72 lakh claims for own damage were made, and of those, nearly 60 lakh were fully settled (excluding claims that were rejected or closed without payment).
The amount of money that was paid out to settle the claims was Rs. 18,262 crore.