This festive season, Indians aren’t just celebrating with shopping and travel – they’re also securing protection for themselves and their families. Between September 22 and October 14, insurance payments grew 14% week-on-week and 35% year-on-year, coinciding with the 0% GST reform and early Navratri-Diwali spending, an analysis by Policybazaar shows. UPI emerged as the top payment mode, while credit cards made a strong festive comeback, and monthly premium plans gained remarkable traction.
The festive period acted as a catalyst for insurance purchases, with users showing stronger intent to secure health, vehicles, and family protection before the new financial year-end rush. While overall payment volumes in this segment were up more than 14.13% (week-on-week), the year-on-year festive growth was more than 35.38%. According to the analysis, the momentum strongest across motor and two-wheeler, categories linked to festive buying.
“Consumers are consciously planning how to pay for insurance in ways that maximize convenience, rewards, and cash flow management,” said Harsh Vardhan Masta, Head of Payments at Policybazaar. “From UPI and credit cards to netbanking and monthly subscriptions, we are seeing a thoughtful, purpose-driven approach to payments. This shift shows that insurance is now an integral part of festive planning, alongside gifts, travel, and celebrations.”
UPI transactions surged 18% post-September 22, becoming the preferred mode for both renewals and new purchases. As per the analysis, strong growth was visible in motor (+17%) and two-wheeler (+17%) segments – where speed and convenience matter most. For smaller-ticket policies like two-wheelers and top-up health covers, UPI now dominates over 50% of total digital payments.
After months of muted usage, credit cards also re-emerged as a festive favorite for insurance payments – driven by cashback offers, reward redemptions, and EMI convenience. Term insurance payments via credit card jumped 21% in value, showing that consumers are using cards for high-value, protection-led spends. Motor and health insurance also saw a visible lift as banks rolled out festival-linked incentives. Credit card average ticket size (ATS) rose 2.14%, indicating confidence in paying larger premiums through cards.
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While UPI ruled the instant-payment space, netbanking remains the trusted choice for longer-term or higher-value purchases. Term insurance payments via netbanking grew 49%, while investment-linked plans saw a 37% rise during the same period.Debit cards also saw renewed traction during the festive period, supported by strong cashback offers with transactions rising 14% post-GST, helped by bank-level festive cashback offers and digital wallet linkages.
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