Amazon to sell Acko's car and bike insurance, promises deals

NEW DELHI: Amazon Pay has entered the insurance distribution space by becoming a corporate agent of new-age non-life provider Acko General Insurance. The company promises to offer very competitive pricing for car and bike insurance and value-added services.

The value-added services include hassle-free claims with zero paperwork, one-hour pick-up, three-day assured claim servicing and 1-year repair warranty - in select cities, as well as an option for instant cash settlements for low-value claims, making it beneficial for customers.

Speaking to TOI Vikas Bansal, director and head of financial services Amazon Pay India the tie-up was part of the strategy to make Amazon Pay the most convenient and rewarding way to pay. He said that while the overall philosophy was to offer more choice for the customer, it did sometimes make a choice on behalf of the customer to offer them the best deal. He, however, clarified that this was not a comment on future strategy.

According to IRDAI website. Amazon Pay India holds a corporate agency with Acko from January 17, 2019. The licence is for a composite agency which means that the company can also sell life insurance products. In May 2018, Amazon had led a $12 million funding round in Acko Technologies, the holding company for Acko General Insurance.

“We aim to deliver a superior consumer experience right from purchase to claims by making it more affordable, accessible and seamless,” said Varun Dua, CEO, Acko General Insurance. He added that the company was working on lowering the cost of the product by bringing down the cost of distribution. So far the company was not offering its policies through aggregators and it was only recently that it has tied up with Cover Fox – an online insurance aggregator platform - which incidentally was originally co-founded by Dua in 2011.

Besides Amazon, Acko’s investors include Accel Partners, Catamaran Ventures, SAIF Partners, RPS Ventures, and Mr. Binny Bansal.

Source: The Times of India