Policybazaar Reports 33% Surge in Monsoon Motor Insurance Claims

1 min read     Updated on 07 Aug 2025, 08:02 PM
scanxBy ScanX News Team
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Overview

PB FinTech, Policybazaar's parent company, reported a 33% increase in motor insurance claims during the monsoon season. The average claim amount rose from ₹30,000 to ₹40,000. Only 20% of vehicle owners have engine protection add-ons, while roadside assistance adoption reached 75%. Non-metro areas accounted for 74-75% of monsoon claims. Hatchbacks made up 54% of claims with an average repair cost of ₹35,000, sedans 26% at ₹45,000, and SUVs 20% at ₹60,000. Motor insurance claims showed a total growth of 12.90% over two years. Policybazaar recommends vehicle owners adopt essential add-ons like engine protection, roadside assistance, and zero depreciation cover for comprehensive protection.

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*this image is generated using AI for illustrative purposes only.

PB FinTech , the parent company of Policybazaar, a leading insurance aggregator, has reported a significant increase in motor insurance claims during the monsoon season, highlighting the importance of comprehensive coverage for vehicle owners.

Key Findings

  • Motor insurance claims increased by 33% during the monsoon season
  • Average claim amounts rose from ₹30,000.00 to ₹40,000.00
  • Only 20% of vehicle owners have engine protection add-ons
  • Roadside assistance adoption reached 75% among customers
  • Non-metro areas accounted for 74-75% of monsoon claims

Claim Patterns and Vehicle Types

The report reveals interesting patterns in motor insurance claims across different vehicle types:

Vehicle Type Percentage of Claims Average Repair Cost
Hatchbacks 54.00 35,000.00
Sedans 26.00 45,000.00
SUVs 20.00 60,000.00

Year-on-Year Growth

Motor insurance claims have shown consistent growth:

  • 3.20% increase
  • 9.40% increase
  • Total growth of 12.90% over two years

Monsoon-Related Risks

The surge in claims during the monsoon season is primarily attributed to engine failure and electrical damage caused by waterlogging. Despite the high risk, 80% of vehicle owners remain exposed to these expensive monsoon-related damages due to a lack of engine protection add-ons.

Urban vs. Non-Metro Claims

Interestingly, while metro cities reported the highest number of incidents, non-metro areas accounted for the majority of monsoon claims. Non-metro regions contributed to 74-75% of monsoon-related claims.

Recommendations from Policybazaar

In light of these findings, Policybazaar emphasizes the need for vehicle owners to adopt essential add-ons to their motor insurance policies. These include:

  1. Engine protection
  2. Roadside assistance
  3. Zero depreciation cover

By incorporating these add-ons, vehicle owners can better protect themselves against the financial risks associated with monsoon-related damages and ensure more comprehensive coverage for their vehicles.

The significant increase in claims and average claim amounts underscores the importance of adequate insurance coverage, especially during challenging weather conditions. As climate patterns continue to evolve, it becomes crucial for vehicle owners to reassess their insurance needs and consider additional protections to safeguard their investments.

Historical Stock Returns for PB FinTech

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PB Fintech Expands into Pension Distribution, Reports Strong Q1 Performance Amid Regulatory Scrutiny

1 min read     Updated on 05 Aug 2025, 11:12 PM
scanxBy ScanX News Team
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Overview

PB FinTech, parent of Policybazaar and Paisabazaar, acquired Pensionbazaar.com, entering the pension product distribution market. The company reported robust Q2 results with net profit up 40% to ₹84.50 crore and revenue from operations up 33.5% to ₹1,348 crore. Total insurance premium grew 36% to ₹6,616 crore. However, IRDAI imposed a ₹5 crore penalty on Policybazaar Insurance Brokers for regulatory violations, including issues with directorships, product display, and premium remittance.

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*this image is generated using AI for illustrative purposes only.

PB FinTech , the parent company of Policybazaar and Paisabazaar, has made strategic moves to expand its financial services portfolio while reporting robust financial results. However, the company also faces regulatory challenges as revealed in a recent disclosure.

Acquisition of Pensionbazaar.com

PB FinTech has acquired Pensionbazaar.com, making it a wholly owned subsidiary. This acquisition marks the company's entry into the pension product distribution market, establishing a third core vertical alongside its existing insurance and credit product offerings. The move is seen as a strategic step to diversify PB FinTech's financial services portfolio, now encompassing:

  1. Policybazaar for insurance distribution
  2. Paisabazaar for credit products
  3. Pensionbazaar for pension products

Strong Quarterly Performance

The company has reported impressive financial results for the quarter:

Metric Amount (₹ in crore) Year-on-Year Growth
Net Profit 84.50 40.00%
Revenue from Operations 1,348.00 33.50%
Total Insurance Premium 6,616.00 36.00%

The growth in insurance premium was primarily driven by a significant 65% increase in online new health insurance. Core insurance revenue saw a robust 37% year-on-year growth, although core credit revenue experienced a 22% decline.

Regulatory Challenges

While PB FinTech celebrates its expansion and financial growth, the company faces regulatory scrutiny. According to a disclosure made under SEBI regulations, the Insurance Regulatory and Development Authority of India (IRDAI) has levied a penalty of ₹5 crore on Policybazaar Insurance Brokers Private Limited, a wholly owned subsidiary of PB FinTech.

The penalty stems from an onsite inspection conducted by IRDAI in June 2020. The regulator cited violations of IRDAI regulations concerning:

  • Directorships held by Key Managerial Personnel (KMPs) and principal officer (PO)
  • Product display
  • Outsourcing agreements
  • Tagging of policies
  • Premium remittance

PB FinTech has stated that the financial impact is limited to the penalty amount, and no significant impact is expected on Policybazaar's operations or other activities. The company is required to comply with additional directions and advisories from IRDAI in a time-bound manner.

The regulatory action underscores the importance of compliance in the rapidly evolving fintech sector, even as companies like PB FinTech continue to expand their service offerings and report strong financial performance.

As PB FinTech navigates these regulatory challenges, its recent acquisition and strong quarterly results demonstrate the company's commitment to growth and diversification in the competitive financial services market.

Historical Stock Returns for PB FinTech

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-0.25%-0.65%-4.57%+6.47%+19.88%+47.17%
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