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    After a temporary blip, motor again becomes the largest contributor to general insurance premium

    After a temporary blip, motor again becomes the largest contributor to general insurance premium

    After a temporary blip, motor again becomes the largest contributor to general insurance premium
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    By Yash Jain   IST (Published)

    Mini

    The general insurance industry collected slightly over Rs 4,100 crore of premium in the month of May from the motor insurance segment.

    The general insurance industry collected slightly over Rs 4,100 crore of premium in the month of May from the motor insurance segment. This helped the motor insurance segment regain its position of being the largest contributor to the general insurance pie, a spot which was over taken by health insurance segment in the month of April.
    In the month of April, for the first time ever, health insurance became the largest contributor to the general insurance pie. The general insurance industry collected of slightly over Rs 5,600 crore from the health insurance vertical signifying 38.8 percent of the entire general insurance pie. In comparison, the general insurance industry collected Rs 2,648.5 crore from the motor insurance segment in the month of April signifying 18.3 percent of the entire general insurance pie.
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    Things changed quite rapidly in the month of May, when the general insurance sector collected a total premium of Rs 4,105 crore from the motor insurance segment which was 37.7 percent of the general insurance pie. In comparison, the industry collected slightly over Rs 3,500 crore from health insurance premium which was 32.2 percent of the general insurance pie.
    The reference to general insurance industry in the article would incorporate the total premium collected by 25 general insurance and 7 standalone health insurance companies.
    To understand industry breadth for the month of April, out of 25 general insurance companies, 13 had motor insurance as their largest premium contributor whereas 12 companies had health as their largest premium contributor.
    What gave health insurance an edge over motor insurance is that most large companies including ICICI Lombard, New India Assurance, National Insurance, United Insurance as well as Oriental Insurance had health as their largest contributor and not motor insurance.
    The industry breadth to the month of May turned in favor of the motor insurance segment. Barring 3, all 22 general insurance companies had motor insurance as their largest premium contributor.
    Experts believe that the fall in motor insurance contribution in the month of April came on the back of a significant drop in auto sales. Also, due to the nation-wide lockdown, motor insurance renewals also saw a drop reflecting in the premium collected from that segment. On the other hand, increased awareness around having a health insurance policy in the times of COVID-19 helped sales in that segment.
    Experts expect motor insurance to maintain its position of being the largest contributor to general insurance premiums as they see auto sales picking up going forward and more stability coming in the sales of health insurance policies.
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