North leads in motor insurance claims; EV repair may cost Rs 39,000: Report

Cost of repairs and claim frequency, coupled with extreme traffic density in North India, are the primary drivers of escalating motor insurance losses

Petrol vehicles account for over two-thirds of all motor insurance claims (68 per cent), outpacing diesel vehicles (25 per cent), according to a report by Policybazaar.com.

   

Electric vehicles account for only 1 per cent of claims but their average repair cost of Rs 39,021 makes them the costliest segment. Their claim frequency is also the highest at 29 per cent.

   

Almost half of motor insurance claims in the country are made in the North and the average cost of a claim is the highest in Northeast India. Most motorists make an insurance claim only when necessary, as average costs range from Rs 12,846 for older vehicles to Rs 74,106 for luxury cars. Policybazaar’s data show that 48 per cent of India’s motor insurance claims are made in the North, due to National Capital Region’s traffic density and expensive repair ecosystem. South India follows with 31 per cent claims, while the West and East contribute 10 per cent and 8 per cent respectively.

 

   

Northeast India accounts for 2 per cent of claims but reports the highest average severity (the average cost of a claim) at Rs 34,134, indicating repairs are costlier in the region. South India has the lowest average severity at Rs 23,899.

   

City trends: Lucknow tops frequency at 17 per cent

   

Among major urban centres, Lucknow reports the highest claim frequency at 17 per cent. Noida has the highest severity (Rs 25,157), with Gurgaon and Ghaziabad also recording severities above Rs 22,000.

   

Chennai and Mumbai contribute only 1.8 per cent and 1.5 per cent of claims, along with lower repair bills.

   

Compact cars generate 44 per cent of claims

   

Compact cars account for the largest share (44 per cent) of all claims, generating repair bills averaging Rs 21,084.

 

SUVs contribute 32 per cent and are costlier to repair, with severity averaging Rs 29,032.

 

Luxury cars form just 1 per cent of claims, yet their repair severity rises to Rs 74,106, the highest among all segments.

   

EVs are the costliest to repair: Rs 39,021 on average

   

Newer vehicles (0–3 years) see highest costs at Rs 28,310

 

Vehicles up to three years old generate 30 per cent of claims, with severity at Rs 28,310.

 

Cars aged 5–10 years constitute 35 per cent of claims, with repair costs falling below Rs 20,000.

 

Older vehicles (10–15 years) show the lowest severity at Rs 12,846 and only 8 per cent of claims.

   

Claim behaviour: 86 per cent of motorists avoid small claims to protect NCB

   

Policybazaar’s data show that 86 per cent of customers file claims only when essential, largely to preserve their no-claim bonus.

   

The remaining 14 per cent, typically high-usage or zero-depreciation policyholders, file multiple claims.