Report Overview

India Motor Insurance Market – Industry Trends & Forecast Report, 2031

India Motor Insurance Market size was estimated at USD 9.98 billion in 2024. During the forecast period between 2025 and 2031, India Motor Insurance Market size is projected to grow at a CAGR of 11.20% reaching a value of USD 20.98 billion by 2031. The Motor Insurance Market in India is driven by rising vehicle ownership, mandatory insurance regulations, and growing awareness about insurance benefits. Digital innovations and the adoption of telematics and usage-based insurance are also significant growth drivers. Additionally, economic growth and the expanding middle class contribute to higher demand for motor insurance. India Motor Insurance Market is further supported by the increasing sales of electric vehicles (EVs) and the development of customized insurance products tailored to consumer preferences.

Motor Insurance – Overview

Motor insurance provides financial protection against physical damage or loss resulting from accidents, theft, or natural disasters involving motor vehicles. It includes coverage for cars, motorcycles, and commercial vehicles. Policies typically offer third-party liability, own damage, and comprehensive coverage. Motor insurance is mandatory in many countries, including India, to ensure road safety and protect vehicle owners from financial burdens. Key benefits include cashless claim facilities, no-claim bonuses, and add-on covers like zero depreciation and roadside assistance.

India Motor Insurance Market

Growth Drivers

Growing Number of Vehicles on Road

A surge in the number of vehicles operating on road is a significant growth driver for India Motor Insurance Market. As of 2022, the India Ministry of Road Transport and Highways reported that the country had more than 354 million registered motor vehicles. The number of vehicles on road continues to increase across India. With increasing disposable incomes and urbanization, more individuals are purchasing vehicles, leading to higher demand for motor insurance. The expanding middle class and easier access to vehicle financing options further contribute to this trend. As vehicle sales continue to rise, the need for comprehensive insurance coverage becomes more critical, driving the growth of the motor insurance market in India.

Challenges

Price Sensitivity

Price sensitivity is a significant restraint in India Motor Insurance Market. Consumers often prioritize cost over coverage, leading to a preference for lower-priced policies with minimal benefits. This price-driven approach can result in underinsurance and inadequate protection. Additionally, intense competition among insurers to offer the lowest premiums further exacerbates the issue, impacting profitability and the ability to provide comprehensive coverage. Price sensitivity remains a challenge for insurers aiming to balance affordability and quality.

Impact of Escalating Geopolitical Tensions on India Motor Insurance Market

Escalating geopolitical tensions can significantly impact India Motor Insurance Market. Disruptions in global trade can lead to supply chain issues, affecting the availability and cost of vehicle parts and repair services. Increased import tariffs and trade restrictions can raise prices for motor insurance premiums. Additionally, economic instability caused by geopolitical conflicts can reduce consumer spending on non-essential items, including motor insurance. Overall, geopolitical tensions create a challenging environment for the market, affecting both supply and demand dynamics.

India Motor Insurance Market

Segmental Coverage

India Motor Insurance Market – By Motor Insurance Type

By motor insurance type, India Motor Insurance Market is divided into Own Damage and Third Party segments. The third party insurance segment holds a larger share of India Motor Insurance Market by motor insurance type. The segment’s market dominance is primarily driven by regulatory requirements, as third-party insurance is mandatory for all vehicle owners under the Motor Vehicles Act. It provides coverage against legal liabilities arising from third-party bodily injury, death, or property damage. While Own Damage (OD) insurance offers broader protection, including coverage for the policyholder’s vehicle, the mandatory nature, affordability, and legal compliance associated with third-party insurance contribute significantly to its leading position in the market.

India Motor Insurance Market – By Policy Type

On the basis of policy type, India Motor Insurance Market is divided into Liability Insurance, Comprehensive Coverage, Collision Coverage, and Personal Injury Protection segments. The comprehensive coverage segment holds the largest share of India Motor Insurance Market by policy type. This dominance is driven by its all-inclusive nature, covering third-party liabilities, own vehicle damages, theft, and natural or man-made calamities. With increasing vehicle ownership, regulatory mandates, and rising awareness of the benefits of extensive coverage, consumers and businesses prefer comprehensive policies for enhanced protection. Additionally, insurers offer customizable add-ons and benefits under this segment, further boosting its appeal. The segment's growth is also supported by the expanding automotive market and the increasing adoption of electric and high-end vehicles requiring broader insurance coverage.

India Motor Insurance Market – By Application

Based on application, India Motor Insurance Market is divided into Commercial Motor Insurance and Private Motor Insurance segments. The private motor insurance segment is a larger application in India Motor Insurance Market, due to the growing number of privately owned vehicles, rising middle-class income, and increasing vehicle financing options. Additionally, regulatory requirements for mandatory third-party liability insurance and a surge in vehicle sales, particularly two-wheelers and passenger cars, contribute to the segment's growth. The popularity of add-on covers, digital policy issuance, and the expansion of electric vehicles (EVs) further bolster the private motor insurance segment's leading position in the market.

India Motor Insurance Market – By Distribution Channel

India Motor Insurance Market by distribution channel is divided into Individual Agents, Brokers, Banks, Online, and other distribution channels segments. The individual agents segment is the largest distribution channel in India Motor Insurance Market. Individual agents play a crucial role in driving motor insurance sales due to their strong customer relationships, personalized service, and extensive market reach, particularly in semi-urban and rural areas. Despite the growing trend of digital insurance purchases through online channels, many consumers still prefer the guidance and trust offered by individual agents. Their ability to offer tailored advice and assist with claim processes contributes significantly to maintaining their leading position in the market.

India Motor Insurance Market – By Region

Geographically, India Motor Insurance Market is divided into North India, South India, East India, and West India. North India holds the largest market share of India Motor Insurance Market, due to the region's high vehicle density, particularly in metropolitan areas like Delhi and Punjab, along with a robust commercial vehicle market. Additionally, increased awareness about motor insurance, regulatory compliance, and a growing middle-class population contribute to the strong demand for motor insurance in North India. The region's well-established network of insurers and financial institutions further supports its leadership in the market.

Competitive Landscape

Major companies operating in India Motor Insurance Market include New India Assurance Company Limited, ICICI Lombard General Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, HDFC ERGO General Insurance Company Limited, Tata AIG General Insurance Company Limited, Reliance General Insurance Company Limited, SBI General Insurance Company Limited, Bharti AXA General Insurance Company Limited, Future Generali India Insurance Company Limited, IFFCO Tokio General Insurance Company Limited, and Oriental Insurance Company Limited. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Motor Insurance Type

• Own Damage

• Third-Party

By Policy type

• Liability Insurance

• Comprehensive Coverage

• Collision Coverage

• Personal Injury Protection

By Application

• Commercial Motor Insurance

• Private Motor Insurance

By Distribution Channel

• Individual Agents

• Brokers

• Banks

• Online

• Others

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Motor Insurance Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising Vehicle Ownership
         2. Mandatory Insurance Regulations
         3. Increasing Awareness
      2. Restraints
         1. Price Sensitivity
         2. Fraudulent Claims
         3. Lack of Awareness in Rural Areas
      3. Opportunities
         1. Digital Innovations
         2. Usage-based Insurance
      4. Challenges
         1. High Claim Ratios
         2. Low Rural Penetration
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Motor Insurance Market: Marketing Strategies
5. India Motor Insurance Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Motor Insurance Type
         1. Own Damage
         2. Third-Party
      2. By Policy type
         1. Liability Insurance
         2. Comprehensive Coverage
         3. Collision Coverage
         4. Personal Injury Protection
      3. By Application
         1. Commercial Motor Insurance
         2. Private Motor Insurance
      4. By Distribution Channel
         1. Individual Agents
         2. Brokers
         3. Banks
         4. Online
         5. Others
      5. By Region
         1. North India
         2. South India
         3. East India
         4. West India
6. North India Motor Insurance Market
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Motor Insurance Type
      2. By Policy Type
      3. By Application
      4. By Distribution Channel
7. South India Motor Insurance Market
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Motor Insurance Type
      2. By Policy Type
      3. By Application
      4. By Distribution Channel
8. East India Motor Insurance Market
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Motor Insurance Type
      2. By Policy Type
      3. By Application
      4. By Distribution Channel
9. West India Motor Insurance Market
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Motor Insurance Type
      2. By Policy Type
      3. By Application
      4. By Distribution Channel
10. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. India Motor Insurance Company Market Share Analysis, 2023
    3. Competitive Benchmarking, By Operation Channel Parameters
    4. Key Strategic Development (Mergers, Acquisitions, Partnerships, etc.)
11. Impact of Escalating Geopolitical Tensions on India Motor Insurance Market
12. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
    1. New India Assurance Company Limited
    2. ICICI Lombard General Insurance Company Limited
    3. Bajaj Allianz General Insurance Company Limited
    4. HDFC ERGO General Insurance Company Limited
    5. Tata AIG General Insurance Company Limited
    6. Reliance General Insurance Company Limited
    7. SBI General Insurance Company Limited
    8. Bharti AXA General Insurance Company Limited
    9. Future Generali India Insurance Company Limited
    10. IFFCO Tokio General Insurance Company Limited
    11. Oriental Insurance Company Limited
13. Key Strategic Recommendations
14. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5. Assumption & Limitation

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1       India Motor Insurance Market Segmentation          

Figure 2       India Motor Insurance Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023                                               

Figure 4       India Motor Insurance Market Size, By Value (USD Billion), 2019–2031

Figure 5       India Motor Insurance Market Share, By Motor Insurance Type, By Value (USD Billion) 2019–2031

Figure 6       India Motor Insurance Market Share, By Policy Type, By Value (USD Billion) 2019–2031

Figure 7       India Motor Insurance Market Share, By Application, By Value (USD Billion) 2019–2031

Figure 8       India Motor Insurance Market Share, By Distribution Channel, By Value (USD Billion) 2019–2031

Figure 9       India Motor Insurance Market Share, By Region, By Value (USD Billion) 2019–2031

Figure 10     North India Motor Insurance Market Size, By Value (USD Billion), 2019–2031

Figure 11     North India Motor Insurance Market Share, By Motor Insurance Type, By Value (USD Billion) 2019–2031

Figure 12     North India Motor Insurance Market Share, By Policy Type, By Value (USD Billion) 2019–2031

Figure 13     North India Motor Insurance Market Share, By Application, By Value (USD Billion) 2019–2031

Figure 14     North India Motor Insurance Market Share, By Distribution Channel, By Value (USD Billion) 2019–2031

Figure 15     South India Motor Insurance Market Size, By Value (USD Billion), 2019–2031

Figure 16     South India Motor Insurance Market Share, By Motor Insurance Type, By Value (USD Billion) 2019–2031

Figure 17     South India Motor Insurance Market Share, By Policy Type, By Value (USD Billion) 2019–2031

Figure 18     South India Motor Insurance Market Share, By Application, By Value (USD Billion) 2019–2031

Figure 19     South India Motor Insurance Market Share, By Distribution Channel, By Value (USD Billion) 2019–2031

Figure 20     East India Motor Insurance Market Size, By Value (USD Billion), 2019–2031

Figure 21     East India Motor Insurance Market Share, By Motor Insurance Type, By Value (USD Billion) 2019–2031

Figure 22     East India Motor Insurance Market Share, By Policy Type, By Value (USD Billion) 2019–2031

Figure 23     East India Motor Insurance Market Share, By Application, By Value (USD Billion) 2019–2031

Figure 24     East India Motor Insurance Market Share, By Distribution Channel, By Value (USD Billion) 2019–2031

Figure 25     West India Motor Insurance Market Size, By Value (USD Billion), 2019–2031

Figure 26     West India Motor Insurance Market Share, By Motor Insurance Type, By Value (USD Billion) 2019–2031

Figure 27     West India Motor Insurance Market Share, By Policy Type, By Value (USD Billion) 2019–2031 

Figure 28     West India Motor Insurance Market Share, By Application, By Value (USD Billion) 2019–2031

Figure 29     West India Motor Insurance Market Share, By Distribution Channel, By Value (USD Billion) 2019–2031                                      

List of Tables      

Table 1         India Motor Insurance Market Size, By Value (USD Billion), 2019–2031

Table 2         India Motor Insurance Market Share, By Motor Insurance Type, By Value (USD Billion) 2019–2031

Table 3         India Motor Insurance Market Share, By Policy Type, By Value (USD Billion) 2019–2031

Table 4         India Motor Insurance Market Share, By Application, By Value (USD Billion) 2019–2031

Table 5         India Motor Insurance Market Share, By Distribution Channel, By Value (USD Billion) 2019–2031

Table 6         India Motor Insurance Market Share, By Region, By Value (USD Billion) 2019–2031

Table 7         North India Motor Insurance Market Size, By Value (USD Billion), 2019–2031

Table 8         North India Motor Insurance Market Share, By Motor Insurance Type, By Value (USD Billion) 2019–2031

Table 9         North India Motor Insurance Market Share, By Policy Type, By Value (USD Billion) 2019–2031

Table 10       North India Motor Insurance Market Share, By Application, By Value (USD Billion) 2019–2031

Table 11       North India Motor Insurance Market Share, By Distribution Channel, By Value (USD Billion) 2019–2031

Table 12       South India Motor Insurance Market Size, By Value (USD Billion), 2019–2031

Table 13       South India Motor Insurance Market Share, By Motor Insurance Type, By Value (USD Billion) 2019–2031

Table 14       South India Motor Insurance Market Share, By Policy Type, By Value (USD Billion) 2019–2031

Table 15       South India Motor Insurance Market Share, By Application, By Value (USD Billion) 2019–2031

Table 16       South India Motor Insurance Market Share, By Distribution Channel, By Value (USD Billion) 2019–2031

Table 17       East India Motor Insurance Market Size, By Value (USD Billion), 2019–2031

Table 18       East India Motor Insurance Market Share, By Motor Insurance Type, By Value (USD Billion) 2019–2031

Table 19       East India Motor Insurance Market Share, By Policy Type, By Value (USD Billion) 2019–2031

Table 20       East India Motor Insurance Market Share, By Application, By Value (USD Billion) 2019–2031

Table 21       East India Motor Insurance Market Share, By Distribution Channel, By Value (USD Billion) 2019–2031

Table 22       West India Motor Insurance Market Size, By Value (USD Billion), 2019–2031

Table 23       West India Motor Insurance Market Share, By Motor Insurance Type, By Value (USD Billion) 2019–2031

Table 24       West India Motor Insurance Market Share, By Policy Type, By Value (USD Billion) 2019–2031 

Table 25       West India Motor Insurance Market Share, By Application, By Value (USD Billion) 2019–2031

Table 26       West India Motor Insurance Market Share, By Distribution Channel, By Value (USD Billion) 2019–2031         

Table 27     New India Assurance Company Limited Overview

Table 28     New India Assurance Company Limited Financial Overview

Table 29     ICICI Lombard General Insurance Company Limited Overview

Table 30     ICICI Lombard General Insurance Company Limited Financial Overview

Table 31     Bajaj Allianz General Insurance Company Limited Overview

Table 32     Bajaj Allianz General Insurance Company Limited Financial Overview

Table 33     HDFC ERGO General Insurance Company Limited Overview

Table 34     HDFC ERGO General Insurance Company Limited Financial Overview

Table 35     Tata AIG General Insurance Company Limited Overview

Table 36     Tata AIG General Insurance Company Limited Financial Overview

Table 37     Reliance General Insurance Company Limited Overview

Table 38     Reliance General Insurance Company Limited Financial Overview

Table 39     SBI General Insurance Company Limited Overview

Table 40     SBI General Insurance Company Limited Financial Overview

Table 41     Bharti AXA General Insurance Company Limited Overview

Table 42     Bharti AXA General Insurance Company Limited Financial Overview

Table 43     Future Generali India Insurance Company Limited Overview

Table 44     Future Generali India Insurance Company Limited Financial Overview

Table 45     IFFCO Tokio General Insurance Company Limited Overview

Table 46     IFFCO Tokio General Insurance Company Limited Financial Overview

Table 47     Oriental Insurance Company Limited Overview

Table 48     Oriental Insurance Company Limited Financial Overview