The Lockdown has caused a major drop in motor insurance, with sales falling buy almost 50% in April. The drop is estimated to be close to Rs 2621 crores in April, as reported by Times of India.
Other insurance categories such as marine, engineering, aviation, crop and personal accidents have also witnessed drops of 5-40%.
The only insurance sector with positive increases in sales was the health insurance sector. The sector saw a 5.4% increase in sales, which now amounted to Rs 4509 crores.
Considering the pandemic and the fast-spreading fear about outbreaks, people are more inclined to buying health insurance. Further, the high costs of private healthcare push individuals to opt for health insurance covers. Some corporates want to cut costs, owing to cash crunches, and have inquired if the number of dependents for employees can be reduced.
With respect to motor insurance and motor-owned damage, sales fell by 51% to Rs 1407 crores. Furthermore, motor third-party fell by 48% to Rs 1574 crores.