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Old 25th June 2011, 22:14   #16
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Default Re: Insurance on diesel cars to go up

Any idea when this thing might actually come to the implementation stage? The article doesn't hint at any conclusive date or time frame.
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Old 26th June 2011, 01:32   #17
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Default Re: Insurance on diesel cars to go up

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Any idea when this thing might actually come to the implementation stage? The article doesn't hint at any conclusive date or time frame.
Some extra tax on registration of Diesel cars was proposed in Delhi sometime in the beginning of the year (Feb or so). It still hasn't been imposed. Let us hope this talk/article is just to keep some groups happy (Honda? ) and not really to be implemented
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Old 26th June 2011, 07:35   #18
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Default Re: Insurance on diesel cars to go up

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Would be almost impossible to implement such a policy. Even new cars get used as TD vehicles in showrooms with their odometers disconnected!
Precisely why they are thinking of such illogical steps.

Why not make the whole thing more stringent? Such as the insurance companies can check your records with the A.S.S. to know how much the car has travelled. Also there should be a min-max band that the car must travel in a year to achieve the lowest premiums. If the car travelled less than the minimum, or more than the maximum, it would attract higher premiums.
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Old 26th June 2011, 13:12   #19
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Default Re: Insurance on diesel cars to go up

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Some extra tax on registration of Diesel cars was proposed in Delhi sometime in the beginning of the year (Feb or so). It still hasn't been imposed. Let us hope this talk/article is just to keep some groups happy (Honda? ) and not really to be implemented
Oh thats news to me. That new proposed increase in registration by 5% if I remember correctly has still not been implemented huh? Nice. I am going to book a Cruze AT this week.
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Old 26th June 2011, 13:15   #20
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Default Re: Insurance on diesel cars to go up

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Precisely why they are thinking of such illogical steps.

Why not make the whole thing more stringent? Such as the insurance companies can check your records with the A.S.S. to know how much the car has travelled. Also there should be a min-max band that the car must travel in a year to achieve the lowest premiums. If the car travelled less than the minimum, or more than the maximum, it would attract higher premiums.
What I meant is that it would be nearly impossible to figure out how much a vehicle has run in a fair way.

Talking about it being more stringent, we are just making it a whole lot more cumbersome. And well, nothing to say that everyone will be getting them serviced as A$$. Consider the numerous cars in smaller towns and even villages. Also consider how many more resources would be needed to implement any such policy (of tracking the usage of cars). The cost eventually would be borne by customers. IMO it really may not be viable.

They have tried to simplify, basing it on an assumption that diesels are used more. I explained a few posts back, why I found it flawed.
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Old 26th June 2011, 16:48   #21
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Default Re: Insurance on diesel cars to go up

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Oh thats news to me. That new proposed increase in registration by 5% if I remember correctly has still not been implemented huh? Nice. I am going to book a Cruze AT this week.
Just saw your post, mate. Cruze is so much fun to drive, especially on the highway. Loved it, except for the cabin design.

It seems one can save a fair amount by taking insurance directly (ie not from the showroom). See the new car thread for tips on getting good deals on the New Car Price thread (or PM mdsaab).
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Old 27th June 2011, 12:23   #22
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Wink Re: Insurance on diesel cars to go up

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So unless you just don't own a vehicle, saying that people tend to rent diesel vehicles is a case of generalizations.
I never said people will rent diesel cars for long distance travel. All I meant is "if someone is sure about clocking long distances ( and by that i dont mean the long distance travels like 2 or 3 outstation trips a year) in his/her car, they will buy diesel cars". Ever since the petrol prices took off leaving diesel at 2/3rd its price, the writing on the wall is clear. Maruti has confirmed that, so far, in 2011, the split between diesel and petrol options in sale of Ritz and Swift is 70:30. (We did not even talk about Dzire or other models with boot that could have been bought for use as taxi ). Ford has also confirmed this trend in the hatchback segment


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Why not adjust the premium value based on the kilometers run in the whole year?
How does someone assess the mileage? Our country is blessed with talents who can subvert any monitoring systems
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Old 27th June 2011, 12:33   #23
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Default Re: Insurance on diesel cars to go up

Looking at the kind of treatment being given to Diesel car, I am now seriously considering to go in for a CNG vehicle as my next purchase. There are quite a few manuf. who are giving factory fitted CNG cars & these come at a price which is much lower than their Diesel siblings. If you drive primarily in the city, I feel CNG is turning out to be a much better option.
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Old 27th June 2011, 13:34   #24
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Default Re: Insurance on diesel cars to go up

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Looking at the kind of treatment being given to Diesel car, I am now seriously considering to go in for a CNG vehicle as my next purchase.
IMHO this is exactly what the government should target: conversion of mindset from petrol/ diesel to CNG/ LPG/ (electricity?)
Do the insurance companies decrease/ charge less premium for vehicles on CNG/ LPG than the premium on a similar petrol/ diesel vehicle?
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Old 27th June 2011, 16:52   #25
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Default Re: Insurance on diesel cars to go up

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IMHO this is exactly what the government should target: conversion of mindset from petrol/ diesel to CNG/ LPG/ (electricity?)
Do the insurance companies decrease/ charge less premium for vehicles on CNG/ LPG than the premium on a similar petrol/ diesel vehicle?

The hurdle with CNG is it's availability/distribution. If the government can manage what well, there would be a lot of takers for it.
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Old 27th June 2011, 17:05   #26
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Default Re: Insurance on diesel cars to go up

The rationale for increasing premium on Diesel cars is that it is assumed that they are used more? Isn't it the other way round?

What sort of shortsighted and harebrained approach is that? Someone somewhere has lost it. And unfortunately that someone can take such decisions. Its quite evident that no scientific or technological thought has gone into such a decision.
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Old 27th June 2011, 17:41   #27
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Default Re: Insurance on diesel cars to go up

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The rationale for increasing premium on Diesel cars is that it is assumed that they are used more? Isn't it the other way round?

What sort of shortsighted and harebrained approach is that? Someone somewhere has lost it. And unfortunately that someone can take such decisions. Its quite evident that no scientific or technological thought has gone into such a decision.
I dont think there is any rationale to this decision. It seems like a classic case of putting the cart before the horse. The decision has been taken so that a majority of the claims are covered under this hike and then the excuse has been built around it later.

PS- I am not a diesel car owner or direct buyer by any other means
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Old 27th June 2011, 18:57   #28
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Default Re: Insurance on diesel cars to go up

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The rationale for increasing premium on Diesel cars is that it is assumed that they are used more? Isn't it the other way round?
The cause or effect may not be the focus here. What they may be looking at that there is a co-relation between fuel type and usage.

My point (detailed before - page1, I think) was that one may often buy Diesels based on cumulative usage of the car and not annual usage. Insurance premiums are annual.

The government seems to be looking at ways to dissuade us from buying subsidized diesel for our cars. In process also favouring some segments they 'wish' to
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Old 28th June 2011, 12:29   #29
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Default Re: Insurance on diesel cars to go up

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The decision has been taken so that a majority of the claims are covered under this hike and then the excuse has been built around it later.
Agree to every point you say.

To add, I think it also considers the fact that more diesel vehicles are sold in India then petrol.

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PS- I am not a diesel car owner or direct buyer by any other means
I am. but no its no bearing on my thoughts on this.

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Originally Posted by Poitive View Post
What they may be looking at that there is a co-relation between fuel type and usage.
And the reason for that? Isn't it obvious.

The biggest issue for me is the correlation of insurance to the kms run. That's just absurd. If the logic is that if you travel more you will come up with more insurance claims that stretching the absurdity to Himalayan proportions.

And the biggest joke, insurance does not cover wear and tear items

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The government seems to be looking at ways to dissuade us from buying subsidized diesel for our cars. In process also favouring some segments they 'wish' to
The gains if any will be very minor. Isn't it obvious?
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Old 28th June 2011, 12:48   #30
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Default Re: Insurance on diesel cars to go up

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The biggest issue for me is the correlation of insurance to the kms run. That's just absurd.
I agree. Well, what if I drive very less, but park my car out on the street. There can be multiple claims for dents/ damages arising from impact by unidentified vehicles. Also, isnt that why they give the NCB, as a carrot for not making claims?
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