Global Shifts in Motor Insurance: New Products, Policy Challenges, and Market Impacts

bolttech and Harmony Auto launch EV insurance for BYD in Indonesia

10 Sep 2024

bolttech has partnered with Chinese distributor Harmony Auto to launch insurance products for BYD electric vehicle owners in Indonesia. The plans, available through all Harmony Auto showrooms, offer comprehensive or total-loss-only coverage for vehicles worth up to IDR1.5 billion ($91,200). EV-focused benefits include roadside assistance, battery and charger protection, tyre cover, and taxi reimbursement, with options for personal accident, third-party liability, and natural disaster protection. The initiative supports Indonesia’s target of 2 million electric cars and 13 million electric two-wheelers by 2030, while enhancing convenience and peace of mind for EV owners.

SAAQclic: An SAAQ VP was unaware of the numerous bugs detected before the launch

6 Sep 2024

Jean-Philippe McKenzie, vice president at the SAAQ, testified that he would have asked more questions of IT contractors had he known about the numerous bugs in the SAAQclic portal months before its launch. The system went live despite persistent issues, leading to severe service disruptions and tense conditions at service points, including police interventions due to unruly crowds. Employees faced extreme stress, with some crying and managers resigning amid the chaos. McKenzie emphasized that with earlier warning, the agency could have demanded stricter testing and follow-up before rollout. The commission continues to investigate the technological modernization failures at SAAQ.

India: How New GST Rates Are Affecting Two Wheeler Insurance Premiums

5 Sep 2024

The GST Council has revised tax rates, introducing a two-tier system where regular vehicles face 5% or 18% GST, while luxury models attract an additional 40%. Everyday commuters benefit, as entry-level bikes and smaller cars are taxed at 18%, EVs at just 5%, and only high-capacity models fall under the 40% bracket. Since motor insurance premiums include an 18% GST, lower vehicle taxes indirectly reduce insurance costs, though third-party rates set by IRDAI remain unchanged. Factors such as location, bike usage, add-ons, and no-claim bonuses still influence premiums, but reduced GST makes comprehensive coverage more affordable, boosting compliance and easing costs for millions of riders.