Preference of Vehicle Insurance Based on Premium, Retention and Claim

Abstract

India Motor Insurance Market enrolled a CAGR of 11.36% over the period, 2012 – 2018. Motor vehicle insurance law in India is stand for by the Motor Vehicles Act, Insurance Act and parts of insurance contracts administered by the Indian Contract Act, Transfer of Property Act and a couple of others. Motor vehicle insurance is the insurance inclusion of the danger of outsider emerging out the utilization of motor vehicle and furthermore for covering the danger of harm caused to the vehicle. The objective of the study is to evaluate and analyze the preference of vehicle insurance based on the premium, retention and claim ratio by evidence from Indian insurance market over the period from 2013-2014 to 2017-2018. The study analyzed the channel-wise gross direct premium with own damage insurance and third party insurance and also analyzed the correlation relationship between the premium, retention and claim of vehicle insurance during the study period. The result shows the positive relationship between premium and claim. The net retention had the negative relationship with the premium and claim.