In past few days, after new regulations under the Motor Vehicles (Amendment) bill 2019, Digit Insurance, which is the fastest growing general insurance company that wishes to make insurance convenient, saw a sharp surge of the demand for two-wheeler insurance policies.
Digit saw a 163% increase in demand for insurance policies over the past month within just 1 week of the bill being put into effect. Also, some States have seen a significant jump in Delhi’s policies, first on the list with 1371% (highest), followed by Jharkhand-818%, Odisha-719%, Chhattisgarh-679% and Kerala-660%, respectively.
Additional States that have seen significant rise are Uttarakhand-649%, Haryana–478%, Meghalaya–450%, Bihar–388%, Andaman and Nicobar –338%, Assam –300%, UP–298%, Himachal Pradesh–235% and Chandigarh –224%. The demand for two-wheel insurance policies across cities has been stimulated by a heavy penalty imposed on the new Motor Vehicle Act.
“The motor amendment bill will have a strong impact on the improvement of driver behavior on roads,” said Jasleen Kohli, Chief Distribution Officer, Digit Insurance. “With the new laws, people are now willingly coming and renewing their policies. They also have the idea of purchasing the policies online for immediate policy buying. As Digit has always believed in simplifying insurance, we ensure that people can immediately buy our policies in less than seven minutes with using zero documentation. As more regions begin to implement the amended bill, we expect demand to further rise.”
On 1 September 2019, the Motor Vehicles (Amendment) Bill 2019 came into effect. The bill tightens the laws and regulations on road traffic, such as the issuing of a driving license, and prescribes stricter penalties for violations. It is a powerful move by the government to improve road safety, rural transport, public transport and last-mile connectivity through automation, computerisation and online services.