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The share of government general insurance companies is decreasing in Motor Insurance, slipping to 33 percent in August

The share of public sector general insurance companies is declining very fast.

The financial year 2020-21 was a bad year for the motor insurance segment, but it is improving very fast in the current financial year. Even though this segment is showing growth, the share of public sector general insurance companies is declining very fast.

The market share of public sector general insurance companies as compared to private companies declined to 32.6 per cent in August this year. It was 36.6 percent in the same month of the previous year. An analysis of CARE Ratings’ monthly data shows that the share of private players in the motor insurance segment rose to 67.4 per cent in August from 63.4 per cent in the same month last year.

Continued decline since 2017-18

The share of public sector general insurance companies has been declining since the financial year 2017-18. Then the share of government companies in this segment was 46.5 percent and that of private companies was 53.5 percent. According to the report, in the financial year 2018-19, the share of government general insurance companies in this segment decreased to 40.7 percent while that of private companies increased to 59.3 percent.

PSU stake down to 28.3 percent in 2019-20

At the same time, in the financial year 2019-20, the market share of government companies decreased continuously to 36.8 percent and in the financial year 2020-21 to 34.2 percent. Similarly, in the financial year 2017-18, the share of public sector companies in the motor OD (own damage) market was 37.5 percent and that of private companies was 62.5 percent, which increased to 32.5 and 67.5 percent respectively in the financial year 2018-19. In the same financial year 2019-20, the share of government companies decreased to 28.3 percent and that of private sector increased to 71.7 percent.

The share was 52.7% in 2017-18

According to the report, the market share of public sector companies in third party insurance was 52.7 percent in the financial year 2017-18 and it was more than private companies. But it continues to decline. In the financial year 2018-19, it came down to 46.5 percent and in the financial year 2019-20 it came down to 42.2 percent. At the same time, the share of private companies increased to 53.5 percent in 2018-19 and 57.8 percent in 2019-20.

The share of public sector companies is 39.70 percent

In the financial year 2020-21, the share of public companies was 39.7 percent and that of private companies was 60.3 percent. The stake of public sector general insurance companies declined to 38.3 per cent in August this year from 42.3 per cent in the same month a year ago. On the other hand, the share of private companies stood at 61.7 per cent and 57.7 per cent respectively during this period.

57% vehicles do not even have insurance

According to industry data, as of March 2019, more than 23.12 crore vehicles were plying on the roads in the country, of which 57 per cent vehicles were not insured. Out of this, maximum 60 percent two-wheelers and ten percent cars were not insured.

Also read: Mukesh Ambani’s Reliance Industries signs agreement with Manish Malhotra’s company, buys 40% stake in MM Styles

Also read, Online term insurance: The market of insurance is changing, people are buying online term insurance by themselves instead of agents

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Shehnaz Ali
Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.
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