Lockdown: Motor insurance industry suffers 7% business decline in March

CHENNAI: Motor Insurance

business

suffered 7% yoy decline in business in

March

2020 -- i.e., lower new sales and renewals -- owing to lockdown-related disruptions.

According to Kotak Institutional Equities report, motor third party (TP) declined by 5% yoy in March 2020 versus annual growth rate of 12%, and the own damage (OD) business contracted by 9% yoy.

Sanjay Datta, chief-underwriting, claims and reinsurance, ICICI Lombard, said “It was a slow month for us, as we saw about 25% decline in overall motor insurance premium, and would attribute it to lack of vehicle sales due to the

lockdown

. Even renewal of commercial vehicle insurance has lowered by 10%, with owners postponing the decision to renew.”