Page 25 - Insurance Times June 2021

Parivahan. Both these apps are available in any play
store. One can register through their mobile number.
3. Revoking driving license will also happen digitally.

4. Records of license being disqualified etc., will be digitally
stored.
5. E-challans will be issued on the portal.

6. Drivers can only use mobile phones for route navigation
while driving.

These changes, to be effective from October 1, 2020 were
brought in by the Motor Vehicles (Amendment) Bill, 2019.

The high penalty is contributing
to the increasing sale of motor
insurance at a time when the
automobile industry is struggling.
August to September, the sale of
motor insurance saw a significant
No slump in motor insurance business: rise because there's a high penalty now.
Motor insurance is the largest business portfolio for general
insurers. The Regulator released business figures which The penalty is actually higher than the cost of insuring a two
indicate a substantial growth in the premium income wheeler so this has brought a large number of uninsured
underwritten by general insurance companies in September. vehicles within the insurance net. Own damage and third-
Premium income rose to Rs.20,145.46 crores in September party insurance, both have seen equal boost. Insurers
from Rs.14,463.60 during the same time last year. Overall, haven't taken a hit due to drop in automobile sale only
general insurers witnessed a growth of 16.84% compared because older vehicles have now come under the ambit of
to last year. Major chunk of general insurers' revenue is mandatory insurance. This could be a one-time high because
drawn from the sale of motor insurance policies. motor insurance is bought for three and five years so the
premium numbers may not continue to remain this strong
However, passenger vehicle sale continued to disappoint a year from now.
with a plunge by almost 24% in September. General
insurance
companies seem to
be enjoying the
spike in the sale of
motor insurance
policies. After the
amendments to the
Motor Vehicles Act,
not having a third-
party motor
insurance attracts
a fine of Rs.2,000
for the first offence
and a fine of
Rs.4,000 for the
second offence.

The Insurance Times, June 2021 25