Indians buying motor insurance online on the rise, but many don't renew on time: Survey

Thanks to their convenience, more and more Indians are now buying their motor insurance policies online. A study by Coco by DHFL General Insurance found that overall, of the 1,025 respondents over three metropolitan cities, 60 percent bought their motor insurance polices online, directly from company websites. However, the study also found that one in four respondents did not renew their policies. Here are more such findings from the study.

1 in 4 did not bother to renew motor insurance policy
A significant proportion do not own a policy despite it being mandated by law.

Policyholders failed to take responsibility for renewals
A combination of lack of responsibility and ignorance resulted in policies lapsing.

Online purchase/renewal has become popular
Despite heavy presence on media platforms, share of online web aggregators is much lower

MUMBAI
MODE OF PURCHASE
Online, directly from company website: 57%
Directly through company employees, offline: 15%
Agent/broker: 17%
Online web aggregator: 11%

DELHI
MODE OF PURCHASE
Online, directly from company website: 58%
Directly through company employees, offline: 22%
Agent/broker: 13%
Online web aggregator: 6%

BENGALURU
MODE OF PURCHASE
Online, directly from company website: 64%
Directly through company employees, offline: 16%
Agent/broker: 11%
Online web aggregator: 9%

OVERALL
MODE OF PURCHASE
Online, directly from company website: 60%
Directly through company employees, offline: 18%
Agent/broker: 14%
Online web aggregator: 9%

Punitive action is an effective trigger for buying insurance for many
75% respondents with lapsed policies bought fresh insurance after facing rap from the traffic police.

'Tedious process’ is primary reason for non-renewal despite facing fines
Reasons for allowing the policy to lapse

Discounts a key reason for buying insurance through aggregators
Discounts could blind buyers to chance of compromise on coverage.

MUMBAI
Price/discounts: 82%
Coverages/add-ons: 73%
Brand: 73%

DELHI
Price/discounts: 72%
Coverages/add-ons: 68%
Brand: 73%

BENGALURU
Price/discounts: 74%
Coverages/add-ons: 75%
Brand: 65%

OVERALL
Price/discounts: 76%
Coverages/add-ons: 72%
Brand: 70%

Source: Study by Coco by DHFL General Insurance covering 1,025 respondents over three metropolitan cities; sample size is smaller in case of some questions