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Comprehensive insurance coverage stays the most well-liked possibility amongst two-wheeler homeowners
When it involves further protection, Zero Depreciation is probably the most sought-after add-on, chosen by 78% of customers. (Representative Image)
The two-wheeler insurance coverage market is witnessing a big rural growth, with 49% of purchases now originating from tier-3 cities. High-end bike protection is on the rise, whereas the Zero-Depreciation add-on has emerged as the most well-liked selection, accounting for 78% of insurance policies, Policybazaar stated within the newest evaluation.
It is necessary to buy a minimum of a third-party two-wheeler insurance coverage in India, as required by the Motor Vehicles Act.
While third-party insurance coverage is the minimal authorized requirement, many car homeowners go for complete insurance coverage, which additionally covers damages to their car and gives broader safety.
Key evaluation executed by Policybazaar as listed beneath;
Adoption of Comprehensive Two-Wheeler Insurance In India
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- Comprehensive insurance coverage stays the most well-liked possibility amongst two-wheeler homeowners, with 57% choosing it, adopted by 43% selecting third-party (TP) protection.
- The choice signifies that buyers at the moment are on the lookout for protection that features thefts, accidents and damages precipitated resulting from floods and different pure disasters, past third-party safety.
YOY progress in Comprehensive Plan adoption
- The adoption of complete two-wheeler insurance coverage has witnessed a year-on-year (YOY) progress of 8% to 10%.
- The enhance displays rising consciousness about the advantages of complete insurance coverage. Factors corresponding to elevated highway visitors and accidents, and frequent incidents of rain injury could also be driving this pattern.
Popular Add-ons Chosen by Consumers
- When it involves further protection, Zero Depreciation is probably the most sought-after add-on, chosen by 78% of customers. This signifies a rising curiosity in minimizing out-of-pocket bills associated to wear-and-tear claims.
- Meanwhile, 19% select obligatory private accident (CPA) protection, and 18% choose roadside help, showcasing the rising significance of comfort and private security amongst two-wheeler homeowners.
- For EVs, the pattern reveals that battery cowl/defend add-ons are gaining momentum out there.
Buying Trends By Vehicle Type
- There is a transparent choice for motorbikes, with 70% of insurance coverage purchases made for bikes, in comparison with 30% for scooters. This aligns with the general market, the place bikes are extra widespread, particularly in rural and semi-urban areas.
- The commonest bike phase is 150-220 CC that are primarily used for day-to-day commutes.
- Scooters, whereas accounting for a smaller share, are sometimes most popular by girls, college students, and metropolis commuters.
High-end Bike Insurance
- A distinct segment however rising phase, 7.4% of two-wheeler insurance coverage purchases are for high-end bikes.
- Given the excessive substitute prices and costly repairs related to these autos, homeowners are more and more choosing complete protection to safeguard their investments.
Geographic Distribution of Purchases
- The knowledge reveals that 49% of two-wheeler insurance coverage purchases are made by prospects in tier-3 cities, with tier-2 cities accounting for 27%, and Tier-1 cities comprising 24%.
- The excessive share from tier-3 cities highlights the widespread use of two-wheelers as the first mode of transport in smaller cities and rural areas.
