Only 40% Of Vehicles In India Are Insured; 10.4 Crore On-The-Road Vehicles Are Uninsured!
This research is something which vehicle thieves must be reading with aplomb and happiness.
A new research by General Insurance Council, a body which represents India’s general insurers, have found alarming facts about the state of vehicle insurance in India. And going by the numbers shared, it is clear that lots of black money, under-the-table dealings and ignorance is rampant.
As per the study, it was found that 60% of vehicles in India are uninsured, which means that only 4 out of 10 vehicles plying on Indian roads are insured against accident or theft. As per the data shared, during 2015-16, there were total of 19 crore registered vehicles in India, and out of this, only 8.26 crore vehicles were actually insured.
Interestingly, the report finds that majority of the uninsured vehicles are two wheelers, which includes bikes, scooters.
The situation hasn’t changed much in the last 4-5 years, when it comes to vehicle insurance. For example, during 2012-13, there were total number of 15 crore vehicles in India, out of which only 6.02 crore were insured. Hence, the ratio of 40% insured vehicles is being maintained since last 4 years in India.
Why Vehicle Insurance Is Important?
As per Govt. data, 400 people die from road accidents, every day, which means 16 deaths per hour due to road accidents.
Around 5,00,000 road accidents were reported in 2015 in India, which resulted in 1,46,000 deaths and around 4 lakh injured people. Now, out of all road accidents, 29% were two-wheelers, which are least insured in India.
While only 8.3% of the accidents were buses, 23% were cars.
With the lack of vehicle insurance, the victims are left in the middle, hapless and helpless to receive any compensation and help.
Why 60% Of Indian Vehicles Are Uninsured?
One of the primary reasons which experts point out is lack of awareness and information. Although new vehicles are covered under Motor Vehicle Insurance Acts, and Laws, renewal of those insurance policies is most of the time neglected and avoided.
Besides, lack of motor insurance also stems from the fact that lots of these vehicles are bought via black money, in cash. Once it is done, the owner avoids vehicle insurance for the fear of law and further investigations into the purchase.
And, due to lengthy paperwork, problems while claiming insurance amount after an accident are also some of the reasons why vehicle insurance hasn’t yet picked up.
Motor Insurance companies and Govt., both should create campaigns to increase awareness and information about vehicle insurance in India, and ensure that every vehicle plying on Indian roads in insured for accidents, injuries and death.