Record auto sales following the GST rate cut have brightened prospects for higher motor insurance premiums. Cholamandalam MS General Insurance Managing Director V Suryanarayanan tells Narayanan V how the rate rationalisation will impact motor and health insurance premiums and the role of Bima Sugam in insurance distribution. Excerpts:

Will higher vehicle sales drive motor insurance premiums?

That is the industry-wide expectation. From what we have seen on Day 1 (of the GST rate cut), things look bullish. The government announced the rate cut on September 3 and implemented it from September 22. Many buyers had held back their purchases, so there is also some pent-up demand. The next few days will show whether the growth is broad-based or just seasonal. From a general insurance industry

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