OneCircle Insurance Start-Up Aims to Serve Underinsured Small-Town Commercial Vehicle Owners
An innovative insurance start-up, OneCircle Insurance Brokers, has launched its operations in Pune, targeting a largely overlooked segment of India’s motor market: micro-entrepreneurs who own commercial vehicles in rural and small-town areas. These individuals often struggle with insurance renewals due to limited access and understanding of the products available. By focusing on this niche, OneCircle aims to provide tailored insurance solutions while building a hyperlocal distribution network to enhance accessibility and affordability for its customers.
Targeting the Underserved Market
OneCircle Insurance Brokers is specifically designed to cater to micro-entrepreneurs who own trucks, vans, and tractors. Many of these vehicle owners typically engage with insurers only for mandatory third-party coverage, leaving them underinsured. Jaideep Devare, the founder of OneCircle, emphasized the importance of in-person advice in the insurance process. He stated, “Many customers make decisions without fully understanding terms and conditions.” The company aims to bridge this gap by employing local representatives, referred to as One Circle Champions, who provide personalized guidance to clients.
The firm officially registered in 2025 and received approval in November, marking its entry into the market this month. Its first customer is located approximately 35 kilometers from Pune, indicating a strategic start in a region with significant potential. Devare noted that underinsurance is a structural issue within the commercial vehicle segment, and addressing it requires trained individuals who can offer localized, face-to-face advice.
Building a Local Distribution Network
OneCircle’s distribution strategy revolves around a network of point-of-sale persons (POSPs) who are integral to the company’s operations. These champions are drawn from local communities, ensuring that they understand the specific insurance needs of their neighbors. The company plans to train these individuals to provide advice on simple, pre-underwritten insurance products. While the advice is delivered in person, the transactions are fully digital, allowing for direct payments from customers to insurance companies. This digital approach aims to alleviate trust concerns often associated with insurance transactions.
The initial focus of OneCircle is on western Maharashtra, with plans to expand into nearby districts such as Satara, Sangli, Kolhapur, and Solapur. Devare expressed a long-term vision of a hub-and-spoke model that would eventually cover all 64 Regional Transport Offices (RTOs) in Maharashtra. This localized approach is expected to enhance customer engagement and ensure that insurance products are accessible to those who need them most.
Addressing the Underinsurance Crisis
The economic rationale behind OneCircle’s business model is compelling, given the vast number of uninsured and underinsured vehicles in India. The total motor insurance market was valued at approximately Rs 1 lakh crore in FY24, with nearly half of that stemming from commercial vehicles. However, a significant portion of this market remains underinsured, particularly regarding own-damage coverage. Repair costs can range from Rs 80,000 to Rs 2 lakh, not including lost income during repairs, which can severely impact livelihoods.
Devare highlighted that the company’s narrow product focus is intentional, allowing them to address the specific needs of their target market effectively. In the future, OneCircle plans to expand its offerings to include small business, health, and life insurance. Over the next six to seven months, the firm aims to onboard around 1,000 POSPs in Maharashtra, with a goal of scaling to 25,000 nationally within three years. This growth could potentially impact close to one lakh people at the household level, significantly improving access to essential insurance services for underserved communities.
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