Hyderabad: Motor vehicle insurance segment has taken a hit as sales of new cars have been impacted due to the covid. The impact will linger for some time as transport segment will see a lot of changes happening in view of the safety aspects and the preference will be for personal vehicles in days to come.
“With the squeeze in the job market, many will not be in a position to afford a car in the short term. But due to the safety concerns, they will at least look to upgrade or buy a two-wheeler,” said Vivek Chaturvedi, Chief Marketing Officer and Head of Direct Sales, Digit Insurance.
“The new car insurance has taken a hit as the sales have come drastically. While the sales were nearly zero in April, the condition improved slightly in May and June. However, this is significantly lower compared to the pre-covid times,” he said.
According to him, the cash crunch due to the lockdown has hit the car purchasing plans of many and the situation is likely to continue past September.
he said about the travel preferences,” he said.
Renewals of premiums, particularly of the commercial vehicles, too has taken a hit as they have not been able to use them to the optimum due to the lockdown, cut in salaries or job losses. “With economy opening up, the month-on-month sales are recovering. The business in the commercial vehicles segment that includes trucks, bus, taxis, school buses and vans, buses and others is proportionate to the economy. We could say the segment is down by at least 25 per cent over last year,” he said.
The company, with focus on use of technology for customer services, has managed to increase its share to 1.16 per cent now from the earlier 0.9 per cent, he said.
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