Car

Increased Provisioning sours Indian Insurance Industry short them joy at Third Party Pool Closure

The Indian Insurance Industry hoped for a much better 2012 after a disastrous 2011 in which thousands of people were laid off and hundreds of offices closed. Lack of government reforms and tight regulation had resulted in losses and company exists. The new regulation by IRDA of doing away with a third party pool for disbursing insurance claims for the mandatory third party insurance for cars was hoped to be the beginning of good times. However the joy has been shortlived for the Indian Insurance Industry as the provisioning norms have been increased to 213 percent from 183 percent. What this means is the the car insurance providers will have to set aside more money from third party claims which will result in higher losses. This is the same as when RBI increases the CRR for Indian banks which results in lower profits for them. Car and Truck premiums account for 43% of the premiums and are a big loss marking area. The claim ratio is estimated at 153 per cent. That means for every Rs 100 premium collected, the claims paid are Rs 153. Read on how to buy the Best Car Insurance in India. General insurance industry faces…

Car Insurance Products in India – Advantages vs Disadvantages of Third party Liability and Comprehensive Coverage

Car insurance products in India can be divided into two broad categories a) Third party Liability Cover b) Comprehensive Cover Let’s look at the pros and cons of each of these policies in detail. Third party liability – A Brief Introduction As per the Motor Vehicle Act, any motor vehicle plying in public places should have at least a third party liability cover and it is mandatory in India. Third party Liability is nothing but the coverage extended to the losses caused to the third party. The damages can be of bodily injury or death or damage to the property. Advantages of Third party liability : 1) The owner of the vehicle is rest assured that damages that come under the purview of the third party liability cover is paid by the insurer in case of some untoward incident. 2) In case of bodily injury or death of a third party or a passenger of a public service vehicle the amount paid is the amount incurred (without limit) 3) If there is damage to any property of the third party a limit of Rs 6000 is paid. 4) It also covers the personal accident of owner- driver in case of…

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How Age Matters in Car Insurance and Tips for Online Comparision – Age Brackets, Groups and Discrimination

The insurance premium of vehicles to be insured is based mainly on the following factors 1) Insured Declared Value ( IDV) of the vehicle 2) Cubic Capacity 3) Geographical zones 4) Age of the vehicle How Insured Declared Value( IDV) is affected by the Age of the Vehicle IDV is the ” Sum Insured” which is fixed at the commencement of the policy and is fixed based on the basis of a) Manufacturer’s listed Selling Price of the Vehicle b) Model of the vehicle insured at the commencement of insurance or renewal. This is adjusted for depreciation which depends on the age of the vehicle The percentage of depreciation is 5% to 50% (5% if it is not exceeding 6 months and 50% if it is exceeding 4 years but not exceeding 5 years) IDV of the vehicles beyond 5 years of age and of the obsolete models (the models which the manufacturer has discontinued to manufacture) is determined on the basis of an understanding between the insurer and the insured. Age of the vehicle Age of the vehicle also plays an important part in determining the premium and is divided in three segments. 1) Not exceeding 5 years 2) …

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Cheap Car Insurance in India – 6 Things You Should Know Before Buying

How to buy Cheap Car Insurance in India Buying Car Insurance in India and figuring out which insurer will provide a cheaper rate is an exercise which consumes considerable time but it is worth the effort. The reason is that there are substantial differences in premium rates between different insurers for the same service. Some companies charge more because they bet on the ignorance and laziness of the customer. Third Party Cover is uniform across all companies so there is not a lot that you can do to find a better rate. However in the case of Comprehensive Coverage which is generally more prevalent, the regulatory authority gives permission to insurers to quote the premium based on their risk assessment and underwriting experiences. The below mentioned points will help the reader to understand and buy insurance which is cheaper and suited to his/her needs. 1) Automobile Association Membership: A discount on the own damage premium is allowed if there is a membership with the recognized automobile organizations Private cars certified by the vintage and classic car club of india are given discount on the own damage premium ( discount of 25% On own damage premium) Vehicles fitted with anti- theft…

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Best Car Insurance in India – Quick Review of Policy, Company and Rates

Motor Car Insurance in India is Mandatory and each car, bike and bus plying on the Indian roads has an insurance cover (at least a third party cover). To buy insurance for a car, one has to do a little bit of research to find out which insurer can give him /her the best cover required. Best car insurance is not only about comparing and buying the cheapest car insurance but also about the other factors such as 1) Network of garages across the country 2) Online provision of issuing a policy both for new and renewals 3) Testimonials from the customers on the company’s website. 4) Payment options such as net banking, debit/credit card , cheque etc 5) Online customer service availability to answer queries raised by the customer 6) History and process speed of clearing the claims 7) Discounts available etc While we have mentioned some parameters, the top car insurers are also competing among themselves to be as informative, service friendly with their customers as possible to retain and gain new customers by running some special programmes such as” preferred customers” .This will help the customer and gives him/her wider choice of insurers to get the best…

Car

Third Party Insurance in India – Meaning, What it Insures for Cars, Bikes and Exceptions

Third Party Insurance Meaning: Third party liability is a mandatory requirement in India under the motor vehicles act. Since the motor vehicles plying on roads are prone to accidents (India has one of the highest accident rates), this may result in financial loss to the other vehicle owners. This cover is a must for all cars, bikes and commercial vehicles in India. The reason is that if for some reason the guilty vehicle is not able to compensate the victim, then the insurance company has to cover for the victim losses.Third Party Insurance covers financial loss in case of any untoward incident which may result in bodily injury, death or property damage of the affected party. What it Insures: In the event of accident by the use of Motor vehicle anywhere in India the insured is saved from financial loss otherwise which he/she becomes legally bound to pay to the claimant if not insured. 1) Death or bodily injury of any person including the owner of the goods or his representative (authorised) in the carriage as long as the requirements of motor vehicle act are fulfilled. 2) Damage to the property of a third party other than property which belongs…

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Increased Provisioning sours Indian Insurance Industry short them joy at Third Party Pool Closure

Car Insurance Products in India – Advantages vs Disadvantages of Third party Liability and Comprehensive Coverage

How Age Matters in Car Insurance and Tips for Online Comparision – Age Brackets, Groups and Discrimination

Cheap Car Insurance in India – 6 Things You Should Know Before Buying

Best Car Insurance in India – Quick Review of Policy, Company and Rates

Third Party Insurance in India – Meaning, What it Insures for Cars, Bikes and Exceptions

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