The Policy Bazaar Show is a series that decodes the grey areas of purchasing insurance. Through the 26-episode series, the show will highlight and discuss a magnitude of topics essential to everyone trying to secure their future. From purchasing the right cover to switching policies while shifting jobs, to ensuring a comprehensive child cover, insurance experts deliberate, simplify and, shine a light on the complexities of purchasing insurance in India.
In this week's episode, our eminent host, Vivek Law will be talking to Sajja Praveen Chowdhary. He is the Motor Business Head of Policybazaar.com explaining the condition of motor insurance in the wake of the corona outbreak. They also discuss the digital transformation in the insurance sector.
Ever since the global outbreak of COVID-19, motor insurance has suffered from a backlash. Although the sector is able to hold itself on the digital space, it remains the most affected among all other insurance sectors. The worst impact of the pandemic has been on the dealers and offline workers as there are no buying and selling of transports taking place in lieu of the lockdown. However, rollover or renewal segments have been intact as these can be taken care of online.
There is a lot of confusion in the market due to relaxations in premiums and renewals. However, the relaxations are only available for third party covers. Consumers who have purchased comprehensive covers are to pay their premiums and ensure timely renewal albeit with benefits. The timely renewal of motor insurance will ensure that the consumer doesn’t have to go through the hassle of re-inspection. It will also help the individual in avoiding the variation in prices.
The IRDAI mandate to make insurance-related processes simple for the consumers has enabled many insurers to take up the online space. Over 90% of policies are sold online. The key is to choose the right cover for your vehicles. The vehicles are checked through video-based inspections. The claim process had already been online, however, there is a surge in the demand for online claim processes.
Since the lockdown, there are discounts offered to insurers as vehicles have been off-road resulting in lower damage rates. The consumers who have been prompt in payment of premiums and also have renewed their insurance are rewarded. A major surge is expected in the purchase of vehicles post the lockdown and with it, the purchase of motor insurance. The sector is now expecting digital sales and innovations to be the new norms post-COVID.
Watch the episode for more updates on the motor insurance sector.