Bangalore: Private sector general insurance companies increased their market share to 40 per cent, powered by the once shunned motor insurance business for the first eight months of the current financial year.According to the data released by the Insurance Regulatory and Development Authority (IRDA), private sector insurers gross premium accumulations during the period was Rs 7,352.84 crore, a growth of 26.5 per cent over the corresponding period of the last financial year. Public sector insurers premium accretions for the same period were Rs 11,156.19 crore, or a growth of 3.81 per cent.
The private sector''s growth was largely driven by the retail sector, particular motor risk business. Motor vehicles risk covers became attractive after the formation of the third party pool since the beginning of the financial year. Under the arrangement, all third party liabilities in motor insurances were transferred to a separate entity, India Motor Insurance Pool, since the starting of the year. The arrangement permitted the individual companies to earn a 10 per cent commission and at the same time retain the low claims, own damage component of motor risks business.
The private sector''s growth was largely driven by the retail sector, particular motor risk business. Motor vehicles risk covers became attractive after the formation of the third party pool since the beginning of the financial year. Under the arrangement, all third party liabilities in motor insurances were transferred to a separate entity, India Motor Insurance Pool, since the starting of the year. The arrangement permitted the individual companies to earn a 10 per cent commission and at the same time retain the low claims, own damage component of motor risks business.
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