Navi Expands Insurance Portfolio with Motor Insurance

Navi, a fintech unicorn established by Sachin Bansal, co-founder of Flipkart, has introduced motor insurance, enhancing its insurance offerings with a fully digital, direct-to-consumer solution. Through its general insurance division, the company will provide car and two-wheeler policies that include comprehensive, own-damage, and third-party coverage via its user-friendly app. This platform facilitates immediate policy issuance, digital document storage, and a seamless paperless purchasing experience.

Navi’s motor insurance operates under a zero-commission strategy, eliminating middlemen like agents and dealers. This model empowers the company to deliver transparent pricing and transfer cost savings directly to customers. Furthermore, the organisation will offer additional coverage options such as zero depreciation, roadside assistance, and engine protection, alongside insurance for electric vehicles. Claims will be processed through an internally developed digital claims system.

Navi’s foray into motor insurance positions it in direct competition with Acko General Insurance and Go Digit General Insurance, both leaders in the digital motor insurance sector. Acko has capitalised on a digital-first approach coupled with partnerships with platforms and original equipment manufacturers, while Digit has concentrated on simplifying products and claims via technological advancements. Navi is anticipated to compete on price, app-based purchases, and speed of claim processing, although it will need to enhance its scale and customer trust in the realm of motor insurance.

In FY25, Navi’s lending segment faced a temporary disruption after the Reserve Bank of India halted new loan approvals in October 2024 due to compliance concerns. These restrictions were lifted in December.