Driving into 2024: Motor insurance will pick up speed

financialexpress.com:

By Nitin Kumar

With dynamic consumer needs and technological innovation, motor insurance in India is witnessing a shift from reactive to proactive approach. Beyond the customary metrics of premiums and coverage, this change is marked by innovative solutions like EV insurance and ‘Pay As You Drive’ plans to combat modern challenges. This not only represents a technological leap, but also a shift in perception when it comes to motor insurance.

As the world of mobility dives into 2024, there are trends that will continue to redefine the motor insurance industry. While motor insurance has long been a mandate by law, policyholders are now seeking ways to be adequately insured beyond a third-party cover. In the era of personalised coverage and added safety layers to motor insurance, here’s outlining what 2024 holds for the future of the industry.

Electric vehicles are often projected to be the future of mobility. And why not? EV sales have skyrocketed in recent years and are expected to soar further in times to come. To put it in perspective, the CY23 saw a whopping 48% increase in EV sales in India. It, therefore, comes as no wonder that the insurance industry is keeping up with this surging demand and mirrors this growth.

Apart from providing comprehensive coverage for EVs, the industry is also seeing the advent of new EV add-ons for added protection. Currently, only a few insurance companies offer EV-specific add-ons that provide coverage for EV battery, battery management system, and battery chargers. EVs are sophisticated machines that warrant extra care and protection. The industry understands this and is effectively catering to the evolving consumer needs and it’s expected that more insurance companies will introduce