Motor insurance likely to remain muted amid Covid-19, say experts

Experts said this is the result of higher new vehicle sales on the back of strong retail demand during the festive season

It has been a year of contrasts for non-life insurers with regard to two of their biggest portfolios – motor and health. 

While health insurance saw a surge due to the Covid pandemic, motor insurance, on the other hand, struggled to gather pace owing to the lockdown, slowdown of the economy, and low vehicle sales as well as renewals. However, the situation is improving, albeit slowly.  

In Q1of FY21, motor insurance premiums dropped 24 per cent to Rs 12,011.75 crore as this period coincided with the strict lockdown that the authorities enforced to keep the number of Covid infections under check. 

In Q2,