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Amazon The Indian company announced on Thursday that it has started offering auto insurance for two and four-wheelers in the country. This is the American giant's first foray into this financial services category worldwide.
The e-commerce giant said he had signed a contract with Mumbai-based Acko General Insurance To offer customers auto and motorcycle insurance. Amazon is also an investor in Acko.
Mahendra Nerurkar, managing director and director of Amazon Pay in India, said at a fintech conference Wednesday night that the company plans to expand its insurance service to include insurance coverage for health, flights, and taxis.
Car insurance is available to customers via Amazon Pay on the website and app of the e-commerce giant. The company said that buying insurance will take less than two minutes and doesn't require paperwork.
"This coupled with services such as hassle-free claims-free paperwork, one-hour pick-up, 3-day insured claims processing and 1-year repair guarantee – in selected cities – and an option for immediate cash settlement for claims with low value. This is beneficial for customers," added he added.
Customers who have subscribed to Amazon Prime, the company's loyalty program, which costs about $ 13 a year in India, can access additional benefits and discounts, Amazon said, without identifying those benefits.
The Indian insurance market is the youngest financial services sector that has attracted the attention of local and international technology giants. Paytm, India's most valuable startup and its managing director Vijay Shekhar Sharma acquired insurance company Raheja QBE earlier this month for $ 76 million.
In India, only a fraction of the country's 1.3 billion people currently have access to insurance, and some analysts say digital businesses could prove crucial to making these services accessible to the masses.
According to the rating agency ICRA, insurance products had reached less than 3% of the population in 2017. An average Indian earns around $ 2,100 a year, according to the World Bank. Of the Indians who bought an insurance product, they spent less than $ 50 on it in 2017, ICRA estimated.
“Our vision is to make Amazon Pay the most reliable, convenient, and rewarding payment method for our customers. Pleased with this experience, there is a growing demand for more services. To meet this need, we are pleased to launch an auto insurance product that is affordable, convenient and offers a seamless claims experience, ”said Vikas Bansal, director and head of financial services at Amazon Pay in India, in a statement.
Although Amazon Pay is available in several markets, the payment service offering in India remains unmatched. The company has used the world's second largest Internet market, in which it has invested more than $ 6.5 billion to date, as a test bed to explore various unique opportunities. The Amazon Pay app in India, for example, also sells film and plane tickets.
