Third Party Insurance

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…

Insurance Industry in India in 2011 – Darkness Before Dawn

The Insurance Industry in India is going through gut wrenching times as policy paralysis,low margins,falling premiums and customer friendly policies of IRDA have hit the sector.The government has failed to increase the FDI cap on insurance investment which means that the companies face a capital crunch.Major industrial groups in India like Bharti, DLF, Relaince which had invested are trying to exit quickly though without much success. The revenues are declining and the margins are abysmal.Insurance Industry is said to have massive potential given the fast growing GDP, increasing wealth and lack of insurance penetration.However this is a cyclical downturn for the insurance industry as it is for the whole economy. The downturn till now has not been pretty.The reasons for the down movement has been The results have been very bad for jobs in the insurance sector with employment in the private sector taking a massive hit.During 2010-11, one out of four people employed in the private life insurance sector lost their jobs in the country. For instance, total number of people employed by the top five life insurance companies as on March 31, 2011 stood at 60,215 as against 81,507 in the corresponding period last year. Also, these life…

Insurance Companies , Jobs , Law , News

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…

Car

Vehicle Insurance in India – What are the Rules and How Premium is Calculated

When understanding about Vehicle Insurance in India the first thing to understand how Vehicles are classified by the Insurance Providers. Classification of Motor vehicles: In India, Motor Vehicles are classified into three categories for the purpose of Insurance. Private cars Motor scooters and Motor cycles Commercial vehicles. Rules of Motor Vehicle Insurance and Motor Vehicles Act: Vehicle Insurance in India is covered under the Motor Vehicles Act . This act was passed in 1939 and has undergone some amendments in 1988 and 1994.There are two components to this law one of which is optional and the other mandatory. The third party liability is mandatory and insurance of the Vehicle against Damage (Comprehensive Coverage) which is optional. Third Party Liability: As per the Act, all motor vehicles in public places should have third party liability insurance cover. Liabilities covered under third party liability Body Injury or death of the person which includes the owner of the goods or the person authorized by the owner in the vehicle. Damage to the property which belongs to a third party Body injury or death of any passenger of a public service vehicle Body injury or death of paid driver of the vehicle, conductor or…

OTHERS

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…

Car

Commercial Vehicle Insurance – How Online Quotes can give you a Cheaper Deal

Commercial Vehicle Insurance – How Online Quotes can give you a Cheaper Deal It is mandatory to have commercial vehicle insurance in India as they are possibility of accidents and damages .However like other Vehicles, not all Commercial Vehicles are created equal for Insurance Purposes. Commercial vehicles in India are insured under three categories. a) PCV (Passenger Carrying Vehicles) - example Rickshaws (Motorised), Taxis and Buses. b) GCV (Goods Carrying Vehicles) – example Trucks c) Miscellaneous - example ambulances and mobile dispensaries/clinics, Publicity Vans (for cine film recording) While the third party liabilities cover is the statutory requirement for all the motor vehicles the comprehensive cover differs for each segment for the calculation of premium. The premium for the commercial vehicles under comprehensive coverage is calculated the same way as in the case of a private car policy with some additions/exclusions depending on the segment as mentioned above. Some exclusions under own damage (as compared to the private car policy) 1) Damages to accessories by housebreaking or theft or burglary is covered only when the vehicle is also stolen at the same time 2) Damage caused by overloading of the vehicle is not covered. The commercial vehicle package policy has an additional…

OTHERS

Bike Insurance – Where to Buy, Premium Factors and Tips on Buying Cheap Insurance (Online)

Owning or Driving a Motor Bike is a passion that most of the students express when they come out of the schools and India is a country where the dependence on the two wheelers for day to day commuting is seen across the country. Every day Indian roads are seen buzzing with two wheelers being driven by students to office goers for personal and business purposes. With such huge usage of two wheelers and the dependency on them increasing, it becomes very important that these vehicles are insured from the statutory as well as financial loss aspects. Bike Insurance Products: As per the rules laid by the Tariff Advisory committee( TAC),motorized two wheelers in India must have at least a third party insurance and this is made mandatory. This is similar to other vehicles like cars and trucks as well. Any motorized two wheeler used for the purpose of domestic, professional, pleasure and social purpose by the insured or the employees of the insured come under this cover. However the usage of the two wheelers for the carriage of goods other than racing, speed testing, trial, connected to the motor trade are excluded. Third party Insurance cover: Just like in…

OTHERS

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…

Car

Third Party Insurance

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

Insurance Industry in India in 2011 – Darkness Before Dawn

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

Vehicle Insurance in India – What are the Rules and How Premium is Calculated

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

Commercial Vehicle Insurance – How Online Quotes can give you a Cheaper Deal

Bike Insurance – Where to Buy, Premium Factors and Tips on Buying Cheap Insurance (Online)

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

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