Go Back   Team-BHP > BHP India > Team-BHP Reviews > Indian Car Loans & Insurance

Thread Tools Search this Thread
Old 11th January 2016, 09:13   #1
Senior - BHPian
ghodlur's Avatar
Join Date: Sep 2009
Location: Thane
Posts: 4,777
Thanked: 1,787 Times
Infractions: 0/2 (9)
Unhappy Motor insurance to cost up to 15% more in metro cities

Now this was expected. Post the Chennai flood Motor Insurance claims which seems to have hurt the Insurance co a lot more than expected, Motor Insurance in the major metros like Chennai, Mumbai, Delhi etc will be going to cost more by 15%.

Simple clogging due to rain water can enter basement parking and result in claims." Various parameters, including geography and fuel type, are considered while pricing the motor insurance policy.

Chennai floods have resulted in record claims of Rs 1,500 crore due to damage to cars, which is more than double of what insurers faced during the Mumbai floods in 2006
The claims have already exceeded that of Jammu & Kashmir and Uttarakhand floods where there was a hit of Rs 1,500 crore each time for the industry: the claims from Chennai floods have already touched close to Rs 3,000 crore
So brace for a higher Can Insurance in the new year. I guess the TPL premiums will also see a rise.

More details in the link below:

ghodlur is offline   (1) Thanks Reply With Quote
Old 11th January 2016, 09:23   #2
Distinguished - BHPian
shankar.balan's Avatar
Join Date: Apr 2008
Location: BLR
Posts: 7,551
Thanked: 4,416 Times
Infractions: 0/1 (5)
Default Re: Motor insurance to cost up to 15% more in metro cities

Im sure Bangalore prices cannot be very far behind either.
Insurance and Zero Dep, together are quite expensive, irrespective of the make of car.
While Comprehensive Insurance Premium becomes lower each year for a few years because of IDV depreciation + NCB, the Zero Dep pretty much stays constant so once you reach the Cap of 50% NCB, the premium pretty much remains constant.
But, to me, it is sensible to keep the IDV at a fair level, depending on your usage and maintenance of the vehicle.
Better to pay a proper fair premium and ensure the vehicle is safe, rather than try and penny pinch on this essential need. Also, it is good to take out comprehensive insurance for all passengers that one may be taking around - for a small extra premium, every occupant gets covered in the event of traumatic times.
shankar.balan is offline   Reply With Quote
Old 11th January 2016, 09:27   #3
Distinguished - BHPian
condor's Avatar
Join Date: Jun 2006
Location: Speed-brkr City
Posts: 9,712
Thanked: 2,826 Times
Default Re: Motor insurance to cost up to 15% more in metro cities

Third Party premium being the only mandatory component, would be the component that can get more revenue to the companies. Many people today buy only this to keep their premium low. Companies can increase the TP premium, but give a discount if a customer goes for comprehensive coverage.
condor is offline   (1) Thanks Reply With Quote
Old 11th January 2016, 14:49   #4
Distinguished - BHPian
sgiitk's Avatar
Join Date: Dec 2007
Location: Kanpur
Posts: 6,586
Thanked: 2,979 Times
Default Re: Motor insurance to cost up to 15% more in metro cities

A swallow does not make summer. So one city may have some impact on Comprehensive Premia. I do not expect and impact on TP (actually act only) premia, since they have no role in these claims. Also, Act premia were hiked quite substantially about a year ago.
sgiitk is offline   Reply With Quote

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Metro Ford (Bangalore) ties up with 3M: Spot painting at reduced cost Captain Slow Indian Car Dealerships 4 22nd June 2014 02:16
Experience @ Metro Ford, or should I say Metro Fraud? rahulmd Indian Car Dealerships 15 12th June 2012 10:36
Metro Chevrolet - Dealer asking for more money parishrut786 Indian Car Dealerships 21 21st December 2011 11:13
More cities to be covered under CNG Surprise The Indian Car Scene 4 11th August 2009 19:02
SUV Owners and Metro dwellers to pay more (Rs.2) for Diesel? Steeroid The Indian Car Scene 52 14th August 2008 16:32

All times are GMT +5.5. The time now is 01:59.

Copyright 2000 - 2016, Team-BHP.com
Proudly powered by E2E Networks