Hyundai Motor India enters General Insurance market

In a bid to grab a larger pie of the overall value chain of vehicle acquisition, Hyundai Motor India in FY22 ventured into the "Insurance" segment through Hyundai India Insurance Broking Private Limited.

The new company has obtained registration with Insurance Regulatory Development Authority or (IRDAI) as a Direct Broker -- General, Hyundai Motor said in its annual exchange filing.

Hyundai was expected to commence its commercial operations in September 2022. The company as on 31 March, 2022 had invested an amount of Rs 40 million in various tranches in its wholly owned subsidiary Company Hyundai India Insurance Broking Private Limited (HIIBPL) and was allotted four million Equity Shares of Rs. 10/- each as against the said investment.

Motor Insurance is amongst the biggest contributors of the non-life insurance category accounting for about 35-40 percent of the overall premium collection with an estimated collection of about Rs 80,000 crore according to reports.

The Company will initially cater to servicing motor insurance policies and later branch out into other general insurance policies.