Insurance Claims Trends 2024: Delhi NCR, Maharashtra Experience More Accidental Claims

From fender-benders on busy roads to major accidents, having motor insurance for vehicle owners in India is significant. It can save trouble under many situations providing riders a safety net against any unpredictable turns when on the road.

The claim trends for motor in 2024 show what have been the leading causes and nature of such claims across India. A recent report by Policybazaar.com, an online insurance marketplace, highlights that accidents are the major drivers behind motor claims wherein two regions stand out - Delhi and Maharashtra.

These regions are driving most number of claims

The report notes that Delhi-NCR and Maharashtra have been seen as emerging hotspots for accident-related claims. The reasons behind such a trend could be a mix of many factors such as road discipline in the city, higher vehicular density, and complex traffic patterns.

For urban centres like Delhi NCR and Mumbai the influx of vehicles and rapid urban expansion toppled with a high volume of commuters on its roads can be a key contributing factor behind more accident-related claims.

Monsoon Mayhem

Unsurprisingly, the report finds that the rainy season has seen the most number of claims this year. There was a 40 per cent increase in claims during monsoon months, a season when cars are most prone to break down on water-logged roads.

Other factors such as slippery roads, flash floods, and waterlogged streets weigh the vehicles down during heavy rains. Added covers often come in handy during these situations to not only pick up the mobility but also save any financial strain driving out of vehicular breakdown.

Southern states like Tamil Nadu, Karnataka, and Andhra Pradesh witnessed higher total loss claims due to natural disasters such as cyclones. Delhi NCR and Maharashtra on the other hand saw their share of rain-induced chaos on top of accidents spiking during this period.

Claim amount basis car segmentation; Hatchbacks v/s SUVs v/s Sedan

When it comes to claim amounts, the data shows an interesting breakdown based on different vehicle types. Hatchbacks for instance dominated the roads due to their affordability and thereby made up around 54 per cent of the claim volume.

The average claim amount for hatchbacks was between Rs 20,000 and Rs 25,000.

SUVs, on the other hand, saw fewer claims at 26 per cent of the total. However, their repair costs remained high with claims often ranging from Rs 30,000 to Rs 35,000. The rationale behind this can be attributed to the fact that SUVs come with a higher price tag and can be more sophisticated with their repair needs as compared to hatchbacks.

Sedans fall somewhere in the middle with around 21 per cent of claims averaging between Rs 25,000 to Rs 30,000 in costs.

Motor Insurance Add-ons Gaining Preference

The report finds that policyholders are increasingly choosing add-ons like zero depreciation, engine protectors, and cost of consumables as part of their motor insurance plans for their cars as old as up to 10 years.

The key motor insurance add-ons are as follows:

Engine protection cover: This rider protects the vehicle engine from liquid damage due to water ingress, which is not covered under a regular policy. It also covers engine breakdowns and hydrostatic locks.

Consumables cover: Extended exposure to water can damage lubricants, engine oil, and the gearbox of the vehicle. Many standard policies don’t cover these damages, therefore policyholders opt for consumables cover to get leverage.

Nil Dep: Such an add-on provides an end-to-end cover to the car and is typically taken with the other recommended motor insurance riders.

The report shows a growing trend towards enhanced protection and a desire for comprehensive coverage in the event of a claim.