NEW MOTOR VEHICLE LAW BOOSTS INSURANCE SALES IN INDIA

Heavy penalties set out in the new motor vehicles Act is believed to have led to an increase in sales of motor Insurance Policies.

The new Act which came into effect on 1st of September, imposed higher penalties for various driving violations. For example, a vehicle on the road without Insurance is fined $28.80 dollars and imprisonment of up to three months for a first time offender. This has led vehicle owners into renewing their lapsed Insurance policies. Digital Insurance Companies are the ones benefiting the most from the situation with the implementation of the amended Motor Vehicle Act, online motor insurance sales grew by more than 500% in five days. With online platforms like PolicyBazaar.com selling as much as 67,000 insurance policies perday.

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