Mumbai: In an early indicator of road targeted traffic returning to normalcy across the nation soon after a total nationwide shutdown, motor insurance statements with prime insurers have surged in May possibly.
Even though the assert frequency is continue to underneath the schedule pre-Covid amounts, the opening up of places of work and relaxations in green and orange zones have brought on incidents and routine maintenance associated possess-injury (OD) statements to surge in May possibly to fifty-sixty% of the regular, as per indicative trends shared by insurers with ET.
In April, when the total nation faced popular limits in motion to contain the spread of the coronavirus, the assert ratio had fallen to underneath ten% of schedule amounts for most insurers.
Even though Bharti Axa and Bajaj Allianz General Insurance coverage observed motor possess-injury (OD) statements in May possibly return to about fifty% of the amounts observed right before the lockdown, SBI General and Long term Generali mentioned assert intimations spiked noticeably in the second week of May possibly, reaching about 70-80% of the pre-Covid day by day ordinary. ICICI Lombard and Digit Insurance coverage also observed a marked raise in statements processed in May possibly.
“Claim intimations reporting in April 2020 were much less for the reason that there were limits on the motion of vehicles,” mentioned Pushan Mahapatra, MD and CEO, SBI General. “…with the gradual easing of motion limits and also workshops across India acquiring opened, there is a spurt in statements in May possibly.”
Insurers have attributed the craze to an raise in road targeted traffic and reopening of garages that were shuttered before. “The raise could be on the again of three things: return of targeted traffic, a sudden influx in routine maintenance-associated troubles pursuing reopening of garages and pent-up statements not described due to the lockdown,” mentioned Milind V Kolhe, main underwriting and reinsurance officer, Bharti Axa General.
The popular destruction in West Bengal and Odisha due to cyclone Amphan also lifted the assert frequency in May possibly. “Over the week, we have also observed a marked soar in statements from japanese states, which we think is due to damages associated to Amphan,” mentioned Sanjay Datta, main – underwriting & statements, ICICI Lombard.
“We have observed an raise in OD statements in May possibly that we think is also for the reason that of pent-up routine maintenance troubles getting described,” mentioned Tapan Singhel, CEO of Bajaj Allianz General Insurance coverage.