Insurance Startup Focuses on Neglected Rural Commercial Vehicle Market
An innovative insurance startup is targeting a specific yet underserved segment of India's motor insurance market: micro-entrepreneurs in small towns and rural areas who own commercial vehicles but frequently miss policy renewals due to limited access to insurance services.
Hyperlocal Distribution Model for Rural Reach
OneCircle Insurance Brokers, which commenced operations this month, has designed its business strategy around addressing these critical gaps in insurance accessibility. The company offers products from multiple insurers who are themselves increasingly focusing on niche segments within the commercial vehicle insurance market.
Registered with the Department for Promotion of Industry and Internal Trade as a startup, the firm is currently engaged in discussions with potential investors and strategic partners as it launches its operations.
Building Trust Through Local Champions
The company's strategy centers on establishing a hyperlocal distribution network to reach individual owners of trucks, vans, and tractors who typically have minimal interaction with insurers beyond obtaining mandatory third-party coverage.
"Our distribution model is built around point-of-sale persons, or POSPs, whom we call One Circle Champions," explained Jaideep Devare, founder of the company. "In insurance, accessibility and affordability are critical, but equally important is in-person advice. Many customers make decisions without fully understanding terms and conditions."
Devare noted that OneCircle Insurance Brokers, registered in 2025 and approved in November, is formally launching in Pune after initiating operations, with its first customer located approximately 35 kilometers outside the city.
Addressing Structural Underinsurance Problems
According to Devare, underinsurance represents a structural problem within the commercial vehicle segment. "In motor insurance, people often opt for lower premiums without realizing they are underinsured," he stated. "These gaps can only be addressed by trained individuals who provide local, face-to-face advice."
The One Circle Champions are recruited from local communities themselves. "The idea is to build inclusion by training people to understand insurance needs and begin with simple, pre-underwritten products," Devare elaborated. While advice is delivered in person, all transactions are conducted digitally. "Payments go directly from the customer to the insurance company using digital modes, which removes trust concerns."
Geographical Expansion and Market Potential
Geographically, the company is initiating operations in western Maharashtra. "We are starting in and around Pune and will expand to nearby districts such as Satara, Sangli, Kolhapur, and Solapur," Devare revealed, adding that the longer-term plan involves a hub-and-spoke expansion across the entire state. "Maharashtra has around 64 RTOs, and our aim is to cover all of them over time."
The company maintains a deliberately narrow product focus initially but plans to expand to cover small businesses, health insurance, and life insurance in the future. The economic rationale, according to Devare, is compelling given the substantial population of uninsured and underinsured vehicles in India.
"The total motor insurance market was about Rs 1 lakh crore in FY24, of which nearly half came from commercial vehicles," he noted. "A significant portion of this market remains underinsured, particularly on the own-damage side." Repair costs, he highlighted, can range from Rs 80,000 to Rs 2 lakh, excluding lost income during repair periods. "This directly affects livelihoods."
Ambitious Growth Targets
Over the next six to seven months, the company plans to onboard approximately 1,000 POSPs in Maharashtra, with ambitions to scale to 25,000 nationally over three years. "At a household level, this could impact close to one lakh people," Devare projected.
This innovative approach represents a significant step toward addressing insurance penetration gaps in India's rural and semi-urban commercial vehicle sector, potentially transforming how micro-entrepreneurs access and understand essential insurance products.
