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Old 2nd April 2017, 08:09   #16
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Default Re: Third-party motor insurance premiums increased. EDIT: Once more in 2017!

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Originally Posted by Biohazard View Post
My brother just renewed his car's insurance today as well, even though the due date was the 28th of April. He reckons he saved about 1,400 bucks by renewing it before the April 1st deadline.
Yes. I too have renewed my policy last month though it was expiring on 21st April. Paid the old third party premium.

But this is really ridiculous that third party premium even for private car owners is increasing every year.

I want to know the % of own damage claims and third party claims raised by private car owners. How can we get this information ?
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Old 4th April 2017, 16:59   #17
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Default 3rd party insurance gets more expensive from April 2017

Third-party insurance has become more expensive with the start of the new fiscal year (April 1, 2017). This comes after the Insurance Regulatory and Development Authority (IRDA) proposed a hike of up to 50% in 3rd party insurance premium rates. In addition to this rise in premiums, the third-party insurance packages have also become costly.

The IRDA has also given a go-ahead to insurers to revise commissions of their agents, as part of the IRDA (Payment of Commission or Remuneration or Reward to Insurance Agents and Insurance Intermediaries) Regulations, 2016. This has put a financial burden on the insurance providers, who have increased the premium rates of Motor Vehicle Insurance to offset this rise in expenditure. However, IRDA has advised insurers to ensure that the increase in premium due to the new regulations is limited to +/- 5% of the previous rates.

The insurers have also been asked to submit a certificate to IRDA to ascertain that no detrimental changes have been made on premium or any other provision of insurance policies that have already been sold, prior to April 1, 2017.

Source: Financial Express and Livemint
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Old 4th April 2017, 19:28   #18
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Default Re: 3rd party insurance gets more expensive from April 2017

The steep rise in TP premiums upto 50% was on the anvil for sometime. Finally, IRDA backed by a report from the Insurance Information Bureau of India (IIB) claiming that the number of accidents is on rise in India, have increased the TP premium from April 01 for vehicles on the basis of their cubic capacity.

So, it is presumed that the vehicles of lesser engine capacity are less prone to causing accidents than the ones which are powered by a meatier engine. The only good news is that the insurers need to submit a certificate to IRDAI mentioning that they have not charged their existing customers with retrospective date.

Motor insurance is the only general insurance which is still regulated by the Government.
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Old 4th April 2017, 23:10   #19
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Default Re: 3rd party insurance gets more expensive from April 2017

When I renewed the Insurance for my Pulsar on 31-3-2017, I had to pay as per hiked rates.
BTW, I had taken the insurance online.
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Old 4th April 2017, 23:44   #20
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Default Re: 3rd party insurance gets more expensive from April 2017

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Originally Posted by IndigoXLGrandDi View Post
When I renewed the Insurance for my Pulsar on 31-3-2017, I had to pay as per hiked rates.
BTW, I had taken the insurance online.
Your policy start date has to be on or after 01/04/2017 only then they can charge the increased rates.
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Old 4th April 2017, 23:57   #21
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Default Re: 3rd party insurance gets more expensive from April 2017

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Originally Posted by The Great
Your policy start date has to be on or after 01/04/2017 only then they can charge the increased rates.
While taking policy online on 31-3-2017, I was showed that the policy would start from 01-4-2017 and I was not allowed to change the policy start to 31-03-2017 instead of 01-04-2017. Hence had to ₹ 970/- as against last year's ₹ 692/- .
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Old 5th April 2017, 02:19   #22
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Default Re: 3rd party insurance gets more expensive from April 2017

This is happening every year almost, my premiums are not going down, either I've to fight to shave off a couple of hundred less than previous year or it just comes to around the same price.

Insurance cartels are quite powerful and have a good lobby working at the government's door from the looks of it.

Its a compulsory formality so we're pretty much sitting ducks, let them have their fun.
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Old 5th April 2017, 13:48   #23
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Default Re: 3rd party insurance gets more expensive from April 2017

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Its a compulsory formality so we're pretty much sitting ducks, let them have their fun.
Just now read a newspaper report that almost all Bangalore (BMTC) and KSRTC buses are uninsured, except the high end Volvo ones.

Their reasoning is they have a relief fund from which they pay any compensation when needed. It comes cheaper than paying huge insurance premiums.

In it also mentioned that, insurers try to avoid insuring the STC vehicles because they are often involved in accidents and often the target of public violence.
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Old 5th April 2017, 14:11   #24
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Default Re: 3rd party insurance gets more expensive from April 2017

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Originally Posted by fordday View Post
Just now read a newspaper report that almost all Bangalore (BMTC) and KSRTC buses are uninsured, except the high end Volvo ones.

Their reasoning is they have a relief fund from which they pay any compensation when needed. It comes cheaper than paying huge insurance premiums.

In it also mentioned that, insurers try to avoid insuring the STC vehicles because they are often involved in accidents and often the target of public violence.
"Reasoning"? Is it not against the law to operate a vehicle without insurance? How can a government body reason?

Another common practice of private bus/fleet operators is to obtain insurance certificate by paying the premium in cheque. The check will bounce and hence the policy will not be valid. However, they are in possession of an insurance certificate!!
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Old 5th April 2017, 14:37   #25
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Default Re: 3rd party insurance gets more expensive from April 2017

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Their reasoning is they have a relief fund from which they pay any compensation when needed. It comes cheaper than paying huge insurance premiums.
Not sure but i think there is a clause for govt vehicles where they can have such funds supporting any claims. Even large corporates with large fleet cars for employees, used to have only 3 party liability cover and used to pay from pocket for vehicle damages. This changed after leasing became a popular option.
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Old 5th April 2017, 15:47   #26
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Default Re: 3rd party insurance gets more expensive from April 2017

they keep increasing the TP premium rates year on year, yet do not make the claim process any simpler. Imagine how much simpler and trouble free and rage free the roads would become if the claim mechanism for TP is made simpler. Like say, how it is in the US. Just exchange your insurance details and off you go.
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Old 12th April 2017, 13:10   #27
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Default Re: 3rd party insurance gets more expensive from April 2017

Seems like there is relief for truckers (but not private car owners):

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TOI has learnt that IRDA accepted the truckers’ demand to cut the proposed premium from 41% to only 27% after the road transport ministry intervened.
Source & Full Article
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Old 13th April 2017, 10:52   #28
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Default Re: 3rd party insurance gets more expensive from April 2017

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Originally Posted by fordday View Post
Just now read a newspaper report that almost all Bangalore (BMTC) and KSRTC buses are uninsured, except the high end Volvo ones.

Their reasoning is they have a relief fund from which they pay any compensation when needed. It comes cheaper than paying huge insurance premiums.

In it also mentioned that, insurers try to avoid insuring the STC vehicles because they are often involved in accidents and often the target of public violence.
This is exactly what most local transport authorities used to do in the UK. They also had their own workshop to fix the damaged cars. I do not think you had the option of going elsewhere.
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Old 13th April 2017, 11:37   #29
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Default Re: 3rd party insurance gets more expensive from April 2017

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Originally Posted by GTO View Post
Seems like there is relief for truckers (but not private car owners):
Instead of working for the common population these regulators seem to be working for the corporates.

For my 2010 Activa, from 2010 to 2017, insurance premium has doubled while IDV has halved. This defies all conventional logic.
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Old 17th April 2017, 15:43   #30
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Default Re: 3rd party insurance gets more expensive from April 2017

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Originally Posted by GTO View Post
Seems like there is relief for truckers (but not private car owners):



Source & Full Article
Absolutely absurd. I too read about this. Private car owners are being taken for granted by the Govt. I hope someone takes this up legally and ensure that 3rd party insurance is freed from govt. control
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