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CarDekho set to enter motor insurance broking, gets licence

10 April, 2017

Jaipur-based Girnar Software Pvt. Ltd, which owns auto classifieds portals CarDekho, ZigWheels and Gaadi.com, has received a licence from Insurance Regulatory and Development Authority of India (IRDAI) to launch auto insurance broking services under Girnar Insurance Brokers, a press note said.

The company will launch an app that will attempt to understand users’ risk profile and help them choose a policy that best suits their needs. It has also set up a 24×7 helpdesk to explain insurance parameters and help users select insurance add-ons, it said.

Girnar Insurance Brokers has partnered with names such as IFFCO Tokio General Insurance, HDFC Ergo, Royal Sundaram, Universal Sompo and New India General Assurance.

“We want to build the platform and stabilise it for the next 6-12 months. After that, we will focus more on business strategy. Right now, the whole focus is on building customer experience and making the platform seamless,” Ankur Agarwal, CEO, car owners vertical, Girnar Software, told VCCircle in a telephonic interaction.

Agarwal added that in a few years from now, the company would also look at travel and health insurance, etc.

“We want to focus on servicing also, not just on providing the best price. We want to be more value-driven than price-driven because the customer today is not that price-conscious,” he said.

The company will earn revenue in the form of brokerage charged to insurance companies.

Last year in May, CarDekho had acquired roadside assistance (RSA) provider Help On Wheels Pvt Ltd. Many motor insurers offer roadside assistance as an add-on, or as a bundled product, these days.

For financial year ended March 2016, the firm’s net sales rose 75% to Rs 82.48 crore from Rs 47.03 crore in the previous year, regulatory filings show. But losses almost tripled to Rs 143.77 crore from Rs 47.11 crore in FY15, as the company spent significantly more on brand marketing. Total expenses for FY16 stood at Rs 240 crore compared with Rs 96 crore in the previous financial year.

Girnar Software, founded in 2007 by brothers Amit and Anurag Jain, also owns BikeDekho.com, TyreDekho.com and BuyingIQ. It had bought Zigwheels.com from Times Internet in September 2015. Its direct competitors are CarTrade and CarWale, which have merged, besides Droom and horizontal classifieds players OLX and Quikr.

In February, Times Internet Ltd (TIL), the digital business arm of media conglomerate Bennett Coleman and Co Ltd (BCCL), had launched ETInsure.com, an online platform for buying insurance products, whose first offerings were two-wheeler and car insurance.

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CarDekho set to enter motor insurance broking, gets licence

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