2-wheeler insurance renewals double

Ahmedabad: The fear of steep penalties seems to have increased compliance, at least in Ahmedabad. In the run-up to the implementation of the Motor Vehicles (Amendment) Act, 2019, two-wheeler insurance renewals have shown a twofold increase in Ahmedabad, according to industry estimates. Against roughly 1,000 renewals across all dealerships in Ahmedabad on a normal day, since the past two weeks, the number of insurance renewals have more than doubled with 2,000 applications in a day, indicate estimates by industry players.

“The number of insurance renewals have increased because the new rules under the Motor Vehicles (Amendment) Act, will be notified from Monday. Since there is a provision for increasing fines, people are making sure they comply with the rules duly. At our dealerships, more than 40 renewals were made on a daily basis earlier. Against this, we have been getting over 100 requests in a day for renewal in the past two weeks,” said Pranav Shah, director, Federation of Automobile Dealers’ Association (FADA) – Gujarat.

“In the past one week, against 250 renewals every day, we have seen over 500 renewals in Ahmedabad. The surge in renewal numbers is seen across various automobile OEMs and after news of increased fines under the new traffic rules. In fact, some dealers have also offered discounts on insurance premiums to attract more customers,” said the area manager for Ahmedabad of an insurance company.

Source: The Times of India