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Old 12th January 2011, 13:36   #1
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Red face Third Party Insurance rates to soar!

There is a report in today's TOI Mumbai that IRDA is proposing a 10% hike in the Thrisd party Insuance for cars and bikes and a whopping 80% inscrease for the trucks. The hike was dues since the last time the rates were reviewed were in 2007. The dates for the hike to be effective has not been announced as of yet.

As per the table given in the paper, the hike is as follows:

Cars < 1000cc 670 to 740
Cars 1000-1500cc 800 to 880
2 wheelers upto 150 cc 300 to 330
Trucks upto 7500kg 5580 to 10400

This review as per IRDA is mainly to address the losses being faced by the Motor Insurers in the wake of recent claims.
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Old 12th January 2011, 13:58   #2
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Default Re: Motor Insurance to get costlier

I am not surprised. It is well known that truckers make multiple claims for a single incident.
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Old 14th January 2011, 15:45   #3
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Default Re: Motor Insurance to get costlier

Quote:
Originally Posted by ghodlur View Post
There is a report in today's TOI Mumbai that IRDA is proposing a 10% hike in the Thrisd party Insuance for cars and bikes and a whopping 80% inscrease for the trucks.
Is this hike only for third party insurance or for comprehensive insurance also? Would be good if anyone can provide more insight on this.
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Old 14th January 2011, 16:06   #4
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Default Re: Motor Insurance to get costlier

Quote:
Originally Posted by sgiitk View Post
I am not surprised. It is well known that truckers make multiple claims for a single incident.
The 80% increase is for the third Party Insurance premium for trucks and hence there is no question of multiple claims by truckers here. It is true only if the comprehensive policy premium is also hiked likewise.
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Old 15th January 2011, 13:12   #5
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Default Re: Motor Insurance to get costlier

Quote:
Originally Posted by sgiitk View Post
I am not surprised. It is well known that truckers make multiple claims for a single incident.
What multiple claim can a trucker or anyone for that matter make on a third party insurance?
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Old 18th April 2011, 14:42   #6
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Default Insurance Premium hike effective from April 25,

Premium for third party insurance has been hiled by 10 to 70% for various classes of vehicles. For cars different slabs depending on engine cubic capacity is the new order and is effecrive from April 25, 2011.
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Old 18th April 2011, 14:53   #7
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Default Re: Motor Insurance to get costlier

I wish this leads to a reduction in cross subsidy and thence lower comprehensive premiums. In my view the steps of reducing the max NCB to 50% as well as making the NCB zero in case of a claim were retrograde steps. Effectively you were penalising the honest and careful drivers (I have not made a claim in over 30 years!) to fund the irresponsible and crooked folk. Also, they did away with the Act+Theft and Act+Theft+Fire policies which were popular with the low claim drivers.

They are scared to death of the truckers lobby, and penalise all of us for funding them.
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Old 21st April 2011, 00:24   #8
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Default Re: Motor Insurance to get costlier

Quote:
Originally Posted by sgiitk View Post
Effectively you were penalising the honest and careful drivers (I have not made a claim in over 30 years!) to fund the irresponsible and crooked folk. Also, they did away with the Act+Theft and Act+Theft+Fire policies which were popular with the low claim drivers.

They are scared to death of the truckers lobby, and penalise all of us for funding them.
+1 to that ; People here believe in getting RoI out of premium paid; and the way to do that is to keep making claims.

There was daylight robbery when it came to claims post Aug2006 mega floods where over 80% cars here got submerged.

In some cases,even vehicles which were actually out of town then got covered under "claims".
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Old 28th March 2012, 07:52   #9
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Default Re: Motor Insurance to get costlier

Insurance Regulator has increased the Third Party Insurance Premium effective 1st April 2012.

Motor insurance to get costlier on higher 3rd-party premium - The Times of India
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Old 28th March 2012, 08:05   #10
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Unhappy Re: Motor Insurance to get costlier

This is getting more weirder now. I am sure IRDA had hiked the TP premium by some 275/- odd in the month of April 2011. Now agaion this year they are increasing the premium. This is going to burn some additional holes in the pocket. The attached file shows the increase done in April2011.
Attached Files
File Type: pdf MOTOR[1].pdf (566.3 KB, 765 views)
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Old 28th March 2012, 11:59   #11
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Default Re: Motor Insurance to get costlier

Yes, they are going up w.e.f. 1st April 2012. For those who don't want to read the articles below are the rates for 2-wheelers and 4-wheelers.

Private Cars
Not exceeding 1000cc - 784
1001-1500 - 925
Exceeding 1500 - 2853

2-Wheelers
Not exceeding 75cc - 350
76-150cc - 357
151-350cc - 355
Exceeding 350cc - 680

People complaint about TP rates going up but never think of how much discount is offered against OD premium over the entitled NCB. I just hope IRDA gets some cap on discounts or else insurance companies would face huge loss every year.
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Old 28th March 2012, 12:08   #12
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Default New Third Party Insurance Premium - Effective 1st April 2012

The Insurance Regulator has revised the Third Party Insurance Premium effective 1st April 2012.

Below mentioned are the new premium and comparison with old premium.
Attached Thumbnails
Third Party Insurance rates to soar!-motor-tp-rates.jpg  

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Old 28th March 2012, 12:35   #13
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Default Re: New Third Party Insurance Premium - Effective 1st April 2012

I wonder on what logic is this based?

Two Wheelers
>75cc <150cc = 357
>150cc <350cc = 355

Why is it cheaper for a higher CC two wheeler?
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Old 28th March 2012, 12:36   #14
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Default Re: New Third Party Insurance Premium - Effective 1st April 2012

Has there been any differential hike for petrol and diesel vehicles? Or is it standard across vehicles depending on engine capacity?
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Old 28th March 2012, 12:51   #15
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Default Re: New Third Party Insurance Premium - Effective 1st April 2012

Third Party insurance is so expensive! Compare the coverage for the following two cars:

5 year old Honda City

- Book Value : 4 lakhs
- No Claim Bonus : Full. No claim ever made
- Premium : 6,000 (or in the ballpark)
- Type of coverage : FULL (including theft, accident, fire etc.)

15 year old Mahindra Classic

- Book Value : 50,000 odd
- No claim bonus. Full. No claim ever made
- Premium : About 4,000
- Type of coverage : Only third party. If someone steals my Jeep, I get zero.

Thus, for a car that is 15 years old and is worth 1/8th the value on paper, I pay 2/3 the Honda's insurance premium for BASIC 3rd party coverage.

Insuring an ol' vehicle is such a painful process as few insurers are willing to entertain your business in the first place - Related Thread (Insurance for Older Vehicles - 10 yrs old or so)

@ libranof1987 : No difference between petrol & diesel engines. Premium is based on engine size.

Last edited by GTO : 28th March 2012 at 12:53.
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