Motorcycle sales and the need for motorcycle insurance
As more motorcycle riders fill the country’s roads and the motorcycle market is seen to join the Philippine economy’s recovery next year, it is important for motorcycle riders to take into account their personal safety and that of their two-wheelers, as new risks on the road emerge.
Malayan Insurance Co. Inc. (MICO), the country’s leading non-life insurer, recognizes these risks and the need for protection from unforeseen accidents for the motorcycle rider and the motorcycle unit. It has made available online an insurance coverage for motorcycle riders, called Malayan’s MotoMax. Filipinos see motorcycles as efficient and cost-effective in terms of addressing both their personal and business transportation needs, hence Malayan Insurance’s launch of an affordable protection product for the rider market.
MotoMAX equips the policyholder with compulsory third-party liability insurance, a personal accident cover for the motorcycle rider, and medical reimbursement in the event of an accident. For the motorcycle vehicle, MotoMax covers the full value of the motorcycle unit --no more depreciation applied--, in the event of total loss, total damage. The motorcycle owner is able to get the full value of the vehicle in the event of claim.
MotoMAX covers underbone motorcycles with an engine displacement of 400 cubic capacity (cc) and below and accepts even Chinese brands. Pressed steel comprises the vehicle's structure and bodywork for underbone motorcycles.
Based on a report from MotorCycles Data (McD), motorcycle sales are expected to shift into high gear next year, as the Philippine market sees new opportunities for the two-wheel segment. The demographic profile, unsaturated market, and easy access to credit in the Philippines, poses a promising sales potential for 2021. These factors are expected to help in terms of the recovery of local motorcycle sales for the year 2021.
Trends forming in the local market include the demand for individual mobility and an increase in the offerings of more high-performing scooters. There is also the consumer embrace of digital transactions and the use of mobile devices in purchasing their needs. Malayan’s MotoMax is easily available for issuance and payment online through Malayan’s transactional ecommerce site, www.malayanonline.com.
Apart from the growing Filipino middle class and the numerous offers of more affordable motorcycle units in the country, the purchase of motorcycles is also seen to be fueled by the increase in the need for delivery services.
Furthermore, the government’s initiatives affecting the two-wheeler market are seen as an added boost to help the market recover, like the Motor Vehicle Development Program from the Board of Investments (BOI) which encourages more investments in the country, among others.
New motorcycle brand players from China and India view the Philippine market with growing interest and plan to enter the local market.
Brands such as Honda, Kawasaki, Suzuki, Yamaha and the Taiwanese Kymco have established their respective production or distribution bases within different parts of the country.
McD is an organization that sources and analyzes unique data on motorcycle markets from over 80 countries. Under its Beyond Covid19 project, McD revises its outlook on the motorcycle landscape for 2020 – 2025 on a monthly basis taking into account the effects of the pandemic.
The McD said that in 2019, the number of motorcycle units sold in the country showed a 10.9 percent increase with units sold for the year reaching 2.44 million. Motorcycle sales in the Philippines was the fifth largest in the world last year and was the fastest growing between 2012 and 2019.
Malayan Insurance is the leading non-life insurer in the Philippines and a part of the Yuchengco Group of Companies (YGC). The company celebrates its 90th year in the local insurance industry this 2020.