Gujarat records highest growth rate in motor insurance premium collection: Study

Maharashtra tops with highest share in total motor insurance premium collected across India

Gujarat has ranked on top in terms of gross direct premium in motor insurance (own damage category) collected by the state during 2009-10 and 2012-13, clocking a compounded annual growth rate (CAGR) of over 123 per cent, according to a recent study by industry body Assocham.

“However, it is Maharashtra which has bagged the top slot with highest share of over 16 per cent in total motor insurance premium (own damage) worth about Rs 17,098 crore collected as of 2012-13 across India,” noted the study titled ‘Motor Insurance: The way ahead,’ conducted by The Associated Chambers of Commerce and Industry of India (Assocham).

“The motor insurance premium collection had more than doubled in Gujarat in three years time, from about Rs 618 crore to about Rs 1,379 crore during 2009-10 and 2012-13 respectively,” said Bhagyesh Soneji, chairperson of Assocham Gujarat Council while releasing the findings of the study.

Tamil Nadu has the second highest share of over eight per cent in terms of share in motor insurance premium collected throughout the country followed by Gujarat (8 per cent), Karnataka (7.7 per cent) and Uttar Pradesh (6.9 per cent) amid top five states in this regard.  With a CAGR of about 104 per cent, Bihar is ranked second in terms of growth in motor insurance premium collection followed by Madhya Pradesh (98 per cent), Maharashtra (96 per cent) and Himachal Pradesh (94 per cent) amid top five states in this regard.

The gross direct motor insurance (own damage) premium collection had increased at a CAGR of about 83 per cent, from about Rs 9,345 crore in 2009-10 to about Rs 17,098 crore as of 2012-13, noted the study conducted by the Assocham Economic Research Bureau (AERB).

"The Motor insurance segment in the country is poised to grow in tandem with the growth in automobile industry as newer and faster models are hitting Indian roads along with better and larger road surface as a result of infrastructure development," said D S Rawat, national secretary general of Assocham.

"The cumulative effect of increase in road surface and the growth in automobile population should directly impact the growth of motor portfolio of the non-life insurance industry," he said.