June, 2026
India's non-life insurance industry continued to expand in FY 2024-25, supported by growing awareness,
vehicle ownership, digital policy issuance, and the need for financial protection on the road. According
to industry data, the total number of policies issued by the non-life insurance industry increased from
33.48 crore in 2023-24 to 39.01 crore in 2024-25.
Motor insurance continued to remain one of the most important categories within the non-life insurance
sector. As per the General Insurance Council's Yearbook 2024-25, motor insurance accounted for 46.2%
of the total number of non-life insurance policies issued in 2024-25. Although this share was lower
than 50.0% in 2023-24, the segment continues to play a major role due to the large number of
two-wheelers, cars, and commercial vehicles on Indian roads.
For vehicle owners, motor insurance is not just a legal requirement but also an important financial
safety net. A valid third-party motor insurance policy is mandatory in India, while comprehensive motor
insurance offers wider protection by covering own damage, theft, accidental damage, natural calamities,
and third-party liabilities, depending on the policy terms and add-ons selected.
The growth of the overall general insurance industry also reflects rising customer dependence on
insurance for risk protection. The Ministry of Finance noted that the general insurance industry
collected total premiums of ₹3.07 lakh crore in FY 2024-25. This indicates that insurance is becoming
a more important part of financial planning for individuals, families, and businesses.
With increasing traffic density, accident risks, repair costs, and vehicle values, customers should
carefully review their motor insurance before buying or renewing. Important factors to check include
Insured Declared Value, claim settlement support, cashless garage network, add-on covers, depreciation
cover, engine protection, roadside assistance, and policy exclusions.
At Policies365, customers can compare motor insurance options and choose plans based on their vehicle
type, coverage needs, budget, and renewal requirements. The right motor insurance policy can help
vehicle owners stay legally compliant and financially protected against unexpected road-related risks.
Source: pib.gov.in
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