Recently the Insurance Regulatory and Development Authority of India (IRDAI) has revealed that 50% of the vehicles in the country are running without insurance. This is a direct indication of non-availability of adequate insurance cover for automobiles in India. Recently the 18th Insurance Summit was organized in which IRDAI requested the insurance students to work on innovative ways with the help of technology to cover 83% protection gap for the country.
According to IRDAI, the annual compounded growth rate (CAGR) in the automobile sector has been growing at the rate of 11 per cent for the last 5 years. But to insure every person in the country, they have to be told about its financial and social security importance.
The regulatory body is currently working on Bima Sugam, which is termed as a ‘one-stop shop for insurance’. It will be approved by the regulator and will serve as a common platform for all insurance products sold in the Indian market. This will enable users to buy insurance policies digitally, without worrying about the security of the contract.
In addition, the platform will also provide additional functionality to switch insurance providers or port policies from each other. More information about this is likely to come out in the future.
The statistics of road accidents in India are shocking. In the year 2021, a total of 4.22 cases of road accidents were registered in the country. 1.73 lakh people died in these accidents. The highest number of deaths in road accidents were reported from Uttar Pradesh and Tamil Nadu. While 24,711 people died in road accidents in Uttar Pradesh, the number was 16,685 in Tamil Nadu.
In the latest report of the National Crime Records Bureau, overspeeding, overtaking and driving on the wrong side have been cited as the main reasons for road accidents. According to the report, the maximum number of people in the age group of 18-45 who died in these road accidents.
The report also said that the highest number of vehicle categories involved in road accidents were two-wheelers and four-wheelers. While the number of vehicles like trucks and lorries is the least among them. There has been an increase of 18.8 percent in road accidents in the year 2021 as compared to the year 2020.