Sources: 
Rapido, a prominent bike-taxi startup, is poised to disrupt India’s $20 billion vehicle insurance market by seeking approval from the Insurance Regulatory and Development Authority of India (IRDAI) for a composite corporate agent licence.
This licence would enable Rapido to offer insurance products directly to both drivers and customers, leveraging its existing digital platform and partnerships. The company received a corporate agency licence in March and is currently integrating with three to four insurance companies.
The move comes amid a broader trend where startups are leveraging their distribution strength to capture a larger share of India’s underpenetrated general insurance market. Rapido’s entry targets a market still dominated by offline agents and car sellers, who account for over 90% of vehicle insurance sales.
“Rapido is currently seeking an approval from the Insurance Regulatory and Development Authority (IRDAI) for a composite corporate agent licence, aiming to offer insurance products to both drivers and customers,” according to industry insiders.
By digitizing insurance distribution, Rapido aims to streamline access and potentially reduce costs for vehicle owners, while expanding its service ecosystem beyond ride-hailing.
Industry estimates suggest more than 90% of the vehicle insurance business is still driven by offline agents and car sellers, that is the market these players intend to target.This strategic push aligns with other startups like IndMoney and Park+ that have secured or are applying for similar licences, signaling a shift towards digital insurance distribution in India’s vast and growing insurance sector.
Sources: Rapido, the bike-taxi startup, is seeking IRDAI approval for a composite corporate agent licence to enter India’s $20 billion vehicle insurance market. With over 90% of vehicle insurance sales offline, Rapido aims to disrupt the underpenetrated sector by offering insurance products to drivers and customers through digital partnerships.
