India Two Wheeler Insurance Market By Vehicle Type (Scooters/Mopeds, Motorcycle, Electric Two-Wheeler), By Type (Third Party Insurance Policy, Comprehensive Insurance Policy, Standalone Own Damage Policy), By Source (Insurance Companies, Insurance Agents/Brokers, Banks, and Others (Insurtech Companies, Third Party, etc.)), By Application (Personal Insurance, Commercial Insurance), By Region, Competition Forecast & Opportunities, 2019-2029

Published Date: February - 2025 | Publisher: MIR | No of Pages: 320 | Industry: BFSI | Format: Report available in PDF / Excel Format

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India Two Wheeler Insurance Market By Vehicle Type (Scooters/Mopeds, Motorcycle, Electric Two-Wheeler), By Type (Third Party Insurance Policy, Comprehensive Insurance Policy, Standalone Own Damage Policy), By Source (Insurance Companies, Insurance Agents/Brokers, Banks, and Others (Insurtech Companies, Third Party, etc.)), By Application (Personal Insurance, Commercial Insurance), By Region, Competition Forecast & Opportunities, 2019-2029

Forecast Period 2025-2029
Market Size (2023) USD5.24 Billion
CAGR (2024-2029) 6.80%
Fastest Growing Segment Personal Insurance
Largest Market Insurance Companies

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The India two wheeler insurance market is expected to expand during the forecast period. The market for two wheeler insurance is expanding rapidly along with the rise in demand in the automotive sector. The majority of Indian households depend on a two-wheeler for going to work. Due to this, it is essential for people to take precautions to prevent any accidental financial losses, such as injury to themselves, others, passengers, or pedestrians, thus there is an increase in demand for two wheeler Insurance in India during the forecast period.

India Two Wheeler Insurance Market Scope

Two wheel insurance is a contract between the two wheeler owner and the insurance company, and the company covers any damage caused to the two wheeler.

India Two Wheeler Insurance Market Overview

Strong growth in the automotive industry over the next decade is expected to boost the two wheeler insurance

According to the Motor Vehicle Act of 1988, two-wheeler users are required to have at least third-party two-wheeler insurance to cover accidental death or property damage to third parties.

India Two Wheeler Insurance Market Drivers

Indian two-wheeler insurance market is primarily driven by various factors, such as increased usage of two-wheelers like bikes and scooters by more and more people as their primary mode of transportation. This has resulted in an increased demand for two-wheeler insurance. Moreover, the Indian government has made it mandatory for all two-wheelers on the road to have insurance coverage. This has led to a significant increase in the number of policies sold.

Additionally, there is a growing awareness among two-wheeler owners about the importance of having insurance coverage. People are becoming more aware of the risks associated with riding a two-wheeler and are therefore more inclined to buy insurance policies. The two-wheeler insurance market in India is highly competitive, with many insurers offering a range of products at competitive prices. This has led to a rise in the number of policies sold in Indian market. In addition, the number of accidents involving two-wheelers has been increasing in India. This has led to a greater awareness among two-wheeler owners about the importance of having insurance coverage to protect themselves against financial liabilities.

India Two Wheeler Insurance Market Trends

The demand of two wheeler insurance is expanding due to the new trends in two wheeler insurances in India. In recent years, there has been a growing demand for comprehensive two-wheeler insurance policies that offer protection against theft, damage, and third-party liability. More and more two-wheeler owners are opting for comprehensive policies over third-party liability-only policies.

Moreover, the insurance industry in India has witnessed a significant shift towards online platforms. Many insurance companies now offer online purchase and renewal of two-wheeler insurance policies. This has made the process of buying and renewing policies more convenient and accessible for customers. In addition, usage-based insurance (UBI) is a new trend that is gaining popularity in India's two-wheeler insurance market. UBI policies offer customized premium rates based on the usage patterns of the insured vehicle. This means that customers who use their two-wheelers less frequently or more cautiously can benefit from lower premium rates. Fast and convenient service, transparent product offers, and super-fast claim processing all benefit customers.

Overall, the two-wheeler insurance market in India is undergoing significant changes, with new trends emerging every year. Insurance companies are increasingly focusing on customer-centric solutions and leveraging technology to offer better services to their customers.

MIR Segment1

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India Two Wheeler Insurance Market Challenges

The Insurance Regulatory and Development Authority of India (IRDAI) has been introducing new regulations and guidelines for the insurance industry, which can be challenging for insurance companies to comply with. This can lead to increased compliance costs and affect profitability. Despite the mandatory requirement for third-party liability insurance, a large percentage of two-wheeler owners in India do not have insurance coverage. The lack of awareness about the benefits of insurance and the high cost of comprehensive policies are some of the reasons for low penetration.

The Indian two-wheeler insurance market is highly price-sensitive, with customers looking for the lowest possible premium rates. This puts pressure on insurance companies to offer competitive rates while maintaining profitability. Insurance fraud is a major challenge in the Indian insurance industry, with some customers making false claims or exaggerating their losses to receive higher compensation, this leads to higher costs for insurance companies, which ultimately affects the premium rates for customers. The claims settlement process in India's insurance industry can be slow and inefficient, with customers often facing delays in receiving compensation. This can result in dissatisfaction among customers and a negative reputation for insurance companies.

Thus, the Indian two-wheeler insurance market faces several challenges, which require insurance companies to be innovative and customer-centric to remain competitive in the market.

Recent Developments in India Two Wheeler Insurance Market

  • In 2021, Bharti AXA General Insurance merged with ICICI Lombard General Insurance after receipt of necessary approvals from the National Company Law Tribunal (NCLT) and the Insurance Regulatory and Development Authority of India (IRDAI).
  • In 2020, Mortgage lender HDFC Ergo completed the acquisition of majority stakes in Apollo Munich Health Insurance for USD 180.80 million and 0.36 percent shareholding of employees for USD 1.29 million.
  • According to the recent announcement, starting from January 1, 2023, all insurance businesses will have to go through the verification process. The introduction of these master rules aims to stop fraud in the insurance industry.

India Two Wheeler Insurance Market Opportunities

The demand for two-wheeler insurance in India has been increasing across various sectors. However, there are a few sectors where the demand for two-wheeler insurance has seen significant growth in recent years. The rise of e-commerce and home delivery services has led to a surge in demand for two-wheelers used for delivery and logistics purposes. These vehicles are used extensively for last-mile delivery and require insurance coverage to protect against accidents and damages. Moreover, the growth of ride-hailing and ride-sharing services such as Ola, Uber, and Rapido has led to an increase in the number of two-wheelers used for these services. These vehicles are used for transporting passengers and require insurance coverage to protect against accidents and damages. Thus, the demand for two-wheeler insurance in India is driven by various sectors, including delivery and logistics, ride-hailing and ride-sharing, personal use, and rural areas.

Company Profiles

The major players

MIR Regional

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Market Segmentation

The India two wheeler insurance market is segmented based on vehicle type, source,

Attribute

Details

Base Year

2023

Historical Years

2019 – 2022

Estimated Year

2024

Forecast Period

2025 – 2029

Quantitative Units

Revenue in USD Million, CAGR for 2019-2023 and 2024-2029

Report Coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered

Vehicle Type

Type

Source

Application

Region

Regional Scope

North, West, South, East

Key Companies Profiled

Bajaj Allianz General Insurance Company Limited, Tata AIG General Insurance Company Limited, HDFC ERGO General Insurance Company Limited, Future Generali India Insurance Company Limited, The Oriental Insurance Company Ltd., Reliance General Insurance Co. Ltd., United India Insurance Company LTD., Cholamandalam MS General Insurance Co. Ltd., GO DIGIT General Insurance Ltd., Kotak Mahindra Insurance Co. Ltd.

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Table of Content

Table of content
1.    Introduction

1.1.  Product Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary         

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

4.    Voice of Customer Analysis (B2C Model Analysis)

4.1.  Sample Size Determination

4.2.  Respondent Demographics

4.2.1.     By Gender

4.2.2.     By Age

4.2.3.     By Occupation

4.3.  Brand Awareness

4.4.  Factors Influencing Purchase Decision

4.5.  Customer Satisfaction

4.6.  Challenges Faced After Purchase

5.    India Two Wheeler Insurance Market Outlook      

5.1.  Market Size & Forecast

5.1.1.     By Value

5.2.  Market Share & Forecast

5.2.1.     By Vehicle Type Market Share Analysis (Scooters/Mopeds, Motorcycle, Electric Two-Wheeler)

5.2.2.     By Type Market Share Analysis (Third Party Insurance Policy, Comprehensive Insurance Policy, Standalone Own Damage Policy)

5.2.3.     By Source Analysis (Insurance Companies, Insurance Agents/Brokers, Banks, and Others (Insurtech Companies, Third Party, etc.))

5.2.4.     By Application Market Share Analysis (Personal Insurance, Commercial Insurance)

5.2.5.     By Regional Market Share Analysis

5.2.5.1.         North Market Analysis

5.2.5.2.         West Market Analysis

5.2.5.3.         South Market Analysis

5.2.5.4.         East Market Analysis

5.2.6.     By Company Market Share Analysis

5.3.  India Two Wheeler Insurance Mapping & Opportunity Assessment

5.3.1.     By Vehicle Type Market Mapping & Opportunity Assessment

5.3.2.     By Type Market Mapping & Opportunity Assessment

5.3.3.     By Source Market Mapping & Opportunity Assessment

5.3.4.     By Application Market Mapping & Opportunity Assessment

5.3.5.     By Regional Market Mapping & Opportunity Assessment

6.    India Scooters/Mopeds Insurance Market Outlook

6.1.  Market Size & Forecast          

6.1.1.     By Value

6.2.  Market Share & Forecast

6.2.1.     By Type Market Share Analysis

6.2.2.     By Source Market Share Analysis

6.2.3.     By Application Market Share Analysis

7.    India Motorcycle Insurance Market Outlook

7.1.  Market Size & Forecast          

7.1.1.     By Value

7.2.  Market Share & Forecast

7.2.1.     By Type Market Share Analysis

7.2.2.     By Source Market Share Analysis

7.2.3.     By Application Market Share Analysis

8.    India Electric Two-Wheeler Insurance Market Outlook

8.1.  Market Size & Forecast          

8.1.1.     By Value

8.2.  Market Share & Forecast

8.2.1.     By Type Market Share Analysis

8.2.2.     By Source Market Share Analysis

8.2.3.     By Application Market Share Analysis

9.    Market Dynamics

9.1.  Drivers

9.1.1.     Increasing Two-Wheeler Sales

9.1.2.     Rising Awareness of Importance of having Two-Wheeler Insurance

9.1.3.     Increased Competition Among Insurers

9.2.  Challenges

9.2.1.     Fraudulent Claims

9.2.2.     Increasing Regulatory Requirements

10.  Impact of COVID-19 on India Two Wheeler Insurance

10.1.1.  Impact Assessment Model       

10.1.2.  Key Segments Impacted

10.1.3.  Key Regions Impacted

10.1.4.  Key Countries Impacted

10.1.5.  Key Application Impacted

11.  Market Trends & Developments

11.1.              Increasing Demand for Comprehensive Coverage

11.2.              Emergence of Online Platforms

11.3.              Digitalization in Two Wheeler Insurance

11.4.              Offering Customized Insurances Options

11.5.              Mandatory Third-Party Insurance

12.  Porter’s Five Forces Model

12.1.              Competitive Rivalry

12.2.              Bargaining Power of Buyer

12.3.              Bargaining Power of Supplier

12.4.              Threat of New Entrants

12.5.              Threat of Substitutes

13.  SWOT Analysis

13.1.              Strengths

13.2.              Weaknesses

13.3.              Opportunities

13.4.              Threats

14.  Competitive Landscape

14.1.              Company Profiles     

14.1.1.  Bajaj Allianz General Insurance Company Limited

14.1.1.1.      Company Details

14.1.1.2.      Product & Services

14.1.1.3.      Financials (As Per Availability)

14.1.1.4.      Key Market Focus & Geographical Presence

14.1.1.5.      Recent Developments

14.1.1.6.      Key Management Personnel

14.1.2.  Tata AIG General Insurance Company Limited

14.1.2.1.      Company Details

14.1.2.2.      Product & Services

14.1.2.3.      Financials (As Per Availability)

14.1.2.4.      Key Market Focus & Geographical Presence

14.1.2.5.      Recent Developments

14.1.2.6.      Key Management Personnel

14.1.3.  HDFC ERGO General Insurance Company Limited

14.1.3.1.      Company Details

14.1.3.2.      Product & Services

14.1.3.3.      Financials (As Per Availability)

14.1.3.4.      Key Market Focus & Geographical Presence

14.1.3.5.      Recent Developments

14.1.3.6.      Key Management Personnel

14.1.4.  Future Generali India Insurance Company Limited

14.1.4.1.      Company Details

14.1.4.2.      Product & Services

14.1.4.3.      Financials (As Per Availability)

14.1.4.4.      Key Market Focus & Geographical Presence

14.1.4.5.      Recent Developments

14.1.4.6.      Key Management Personnel

14.1.5.  The Oriental Insurance Company Ltd.

14.1.5.1.      Company Details

14.1.5.2.      Product & Services

14.1.5.3.      Financials (As Per Availability)

14.1.5.4.      Key Market Focus & Geographical Presence

14.1.5.5.      Recent Developments

14.1.5.6.      Key Management Personnel

14.1.6.  Reliance General Insurance Co. Ltd.

14.1.6.1.      Company Details

14.1.6.2.      Product & Services

14.1.6.3.      Financials (As Per Availability)

14.1.6.4.      Key Market Focus & Geographical Presence

14.1.6.5.      Recent Developments

14.1.6.6.      Key Management Personnel

14.1.7.  United India Insurance Company LTD.

14.1.7.1.      Company Details

14.1.7.2.      Product & Services

14.1.7.3.      Financials (As Per Availability)

14.1.7.4.      Key Market Focus & Geographical Presence

14.1.7.5.      Recent Developments

14.1.7.6.      Key Management Personnel

14.1.8.  Cholamandalam MS General Insurance Co. Ltd.

14.1.8.1.      Company Details

14.1.8.2.      Product & Services

14.1.8.3.      Financials (As Per Availability)

14.1.8.4.      Key Market Focus & Geographical Presence

14.1.8.5.      Recent Developments

14.1.8.6.      Key Management Personnel

14.1.9.  GO DIGIT General Insurance Ltd.

14.1.9.1.      Company Details

14.1.9.2.      Product & Services

14.1.9.3.      Financials (As Per Availability)

14.1.9.4.      Key Market Focus & Geographical Presence

14.1.9.5.      Recent Developments

14.1.9.6.      Key Management Personnel

14.1.10.                Kotak Mahindra Insurance Co. Ltd.

14.1.10.1.    Company Details

14.1.10.2.    Product & Services

14.1.10.3.    Financials (As Per Availability)

14.1.10.4.    Key Market Focus & Geographical Presence

14.1.10.5.    Recent Developments

14.1.10.6.    Key Management Personnel

15.  Strategic Recommendations/Action Plan

15.1.              Key Focus Areas

15.2.              Target Regions & Countries

15.3.               Target Vehicle Type

15.4.              Target Type

16.   About Us & Disclaimer

 

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