Go Back   Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 10th January 2006, 10:22   #16
Team-BHP Support
 
tsk1979's Avatar
 
Join Date: Feb 2005
Location: New Delhi
Posts: 22,953
Thanked: 15,640 Times
Default New regime coming 2007

Read in todays economic times, 2007 is the date when new regime comes when insurance premium is decided by color of car, age of owner, etc., etc.,
Now we know its inevitable, just an year to go. So the luxury car with expensive parts may just cost a lakh more in insurance, and think twice before you go for that "red car"!
Mods : Can we change the thread to new regime coming in 2007?
tsk1979 is offline   Reply With Quote
Old 10th January 2006, 10:57   #17
Team-BHP Support
 
Rtech's Avatar
 
Join Date: Apr 2004
Location: Bombay
Posts: 5,769
Thanked: 212 Times
Default

Are you sure its 2007? The people I spoke to were confident of it coming into force from 31st march 2006.
Rtech is offline   Reply With Quote
Old 10th January 2006, 11:07   #18
Team-BHP Support
 
tsk1979's Avatar
 
Join Date: Feb 2005
Location: New Delhi
Posts: 22,953
Thanked: 15,640 Times
Default

Today morning read this in Economic times, 2007 is what the article said. This is what has been said by the finance ministry,
I guess they are postponing it because there are lot of other issues left parties are already opposing, and they dont want to add another so soon

Anyways its coming, and we may be in for a big shock.
tsk1979 is offline   Reply With Quote
Old 10th January 2006, 12:38   #19
Team-BHP Support
 
Zappo's Avatar
 
Join Date: Oct 2005
Location: Hyderabad
Posts: 5,649
Thanked: 2,005 Times
Default

Hmmm... I was pondering over this issue for sometime. I do see some plus points though. The obvious being that rip-offs like a BOSCH part available for 18000 from outside won't be forced upon the consumer for 43000 in the name of genuine spare.

About the disadvantages... yes the risk is definitely there. In the west they have these meddlesome insurance guys everywhere. Hospitals are a big culprit as well where more than the doctor it is your insurance agency that decides the treatment you will get.

However Indian market is unique in terms of its reuirements and demands. It is highly cost-sensitive. So if a Skoda costs huge insurance charges while a Jap luxury car costs the less people will immediately shun the costlier option. In such price sensitive markets ultimately the spare part rates will come down to stay competitive. So customer will benefit a lot.

My only worry is about cartel formation. This could be a real problem for all of us. I hope the government will monitor so that such unhealthy practices do not enter the market space. It will be difficult to prove though...
Zappo is offline   Reply With Quote
Old 10th January 2006, 12:58   #20
Senior - BHPian
 
Surprise's Avatar
 
Join Date: Feb 2005
Location: Chennai
Posts: 2,299
Thanked: 129 Times
Default

Quote:
Originally Posted by tsk1979
When the insurance sector is fully deregulated, the cost of insurance will become dependent not only on the engine size and price, but also on the cost of spares. So 2 cars with same cost may have different insurance costs because of difference in cost of spares.
Is it based on the cost of spares or based on claims that one has made?
Surprise is offline   Reply With Quote
Old 10th January 2006, 13:18   #21
Team-BHP Support
 
Rtech's Avatar
 
Join Date: Apr 2004
Location: Bombay
Posts: 5,769
Thanked: 212 Times
Default

I presume it would be based on:
- the car itself (make, model, price, colour, engine size, power etc)
- Cost of spares
- Drivers claim history
- Drivers age/sex
- City/area where car will be parked
- Whether it has a secure parking lot or not.
- Any anti-theft devices
Rtech is offline   Reply With Quote
Old 10th January 2006, 14:14   #22
Senior - BHPian
 
Surprise's Avatar
 
Join Date: Feb 2005
Location: Chennai
Posts: 2,299
Thanked: 129 Times
Default

Quote:
Originally Posted by Rtech
I presume it would be based on:
- the car itself (make, model, price, colour, engine size, power etc)
- Cost of spares
- Drivers claim history
- Drivers age/sex
- City/area where car will be parked
- Whether it has a secure parking lot or not.
- Any anti-theft devices
Man r u serious. It is not necessary the person who owns the car needs to be behind the wheels always. it should be car specific and not on the person on whom the car is registered.

It would be a safe bet the insurance value needs to arrived based on the claim that was made previous year as what insurance companies do for mediclaim insurance. Once they charge the penalty for over claim, there should be minium claim for next 2 yrs to get away with that penalty. Not sure how it works when going around the other criterias
Surprise is offline   Reply With Quote
Old 10th January 2006, 14:24   #23
BHPian
 
Join Date: Jun 2005
Location: B'lore
Posts: 146
Thanked: 2 Times
Default

Quote:
Originally Posted by Surprise
Man r u serious. It is not necessary the person who owns the car needs to be behind the wheels always. it should be car specific and not on the person on whom the car is registered.
Right! Now, the car plate is not tied to a Driver's license. Would they enforce something like this?
Ajay is offline   Reply With Quote
Old 10th January 2006, 14:32   #24
Team-BHP Support
 
Join Date: Feb 2004
Location: Bangalore
Posts: 11,883
Thanked: 9,697 Times
Default

Quote:
Originally Posted by Surprise
Man r u serious. It is not necessary the person who owns the car needs to be behind the wheels always. it should be car specific and not on the person on whom the car is registered.
To reduce premiums, expect limitations on who can drive - husband, spouse, named drivers or all those over 25. Expect a nice creamy premium for those who are chauffered
ajmat is offline   Reply With Quote
Old 10th January 2006, 15:07   #25
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,712
Thanked: 89,071 Times
Default

Quote:
So if a Skoda costs huge insurance charges while a Jap luxury car costs the less people will immediately shun the costlier option. In such price sensitive markets ultimately the spare part rates will come down to stay competitive. So customer will benefit a lot.
Splendid point! I look forward to seeing it become a reality. I remember choosing one car brand over the other in the States, primarily because it was twice as much more in insurance costings.

GTO
GTO is offline   Reply With Quote
Old 2nd February 2006, 12:36   #26
BANNED
 
MrBoombastic's Avatar
 
Join Date: Oct 2005
Location: Chennai
Posts: 253
Thanked: 2 Times
Thumbs up Thank you!

Whether 2006 or 2007 all I have to say is that Team-BHP has saved me from buying a C or a Laura. Thank you, Team-BHP and a special thanks to tsk bhai.

All of a sudden, Motormom's suggestion for me to buy the Civic over even the V6 Accord is making so much more sense to me... As they say, certian wisdom comes only with age/ experience.

Bachgaya, yaar!
MrBoombastic is offline   Reply With Quote
Old 2nd February 2006, 16:29   #27
Team-BHP Support
 
Zappo's Avatar
 
Join Date: Oct 2005
Location: Hyderabad
Posts: 5,649
Thanked: 2,005 Times
Default

Quote:
Originally Posted by MrBoombastic
Whether 2006 or 2007 all I have to say is that Team-BHP has saved me from buying a C or a Laura. Thank you, Team-BHP and a special thanks to tsk bhai.

All of a sudden, Motormom's suggestion for me to buy the Civic over even the V6 Accord is making so much more sense to me... As they say, certian wisdom comes only with age/ experience.

Bachgaya, yaar!
How? I mean, is this related to this insurance deregularization post?
Zappo is offline   Reply With Quote
Old 18th June 2006, 10:39   #28
vRS
BHPian
 
vRS's Avatar
 
Join Date: Jun 2005
Location: Mumbai
Posts: 33
Thanked: 0 Times
Default Higher insurance rates to hit car owners hard

The TOI article on 17th June with the above title has some major implications.

Motor insurance will be de-tariffed from Jan 2007 and so insurance companies can determine charges on basis of variables they establish. Premiums may go up to 10-15% of the car value.

On the face of it this is not good news for car owners. However, the issue has two interesting spin-offs :

1. Cars with safety equipment (Airbags, ABS etc) will get some plus points

2. Since cars with higher cost of repairs & service will have to pay higher premiums it is likely that manufacturers will have to reduce the cost of spares & service. The article also states that Maruti MD Jagdish Khattar is already turining the heat on dealers who overcharge on spares & service.

So it seems that there is a silver lining to the issue. What say ?


Viky

Note from moderator : Thread merged

Last edited by tsk1979 : 18th June 2006 at 12:20.
vRS is offline   Reply With Quote
Old 18th June 2006, 11:40   #29
BHPian
 
Poseidon's Avatar
 
Join Date: Mar 2006
Location: On the briny
Posts: 81
Thanked: 47 Times
Default

Only Maruti can be expected to take cognizance of as this. High insurance (to customer/dealer) will threaten their survival - all others couldnt care as their customers will cough up the 1.5 -2k extra dough anyway.
Poseidon is offline   Reply With Quote
Old 18th June 2006, 11:47   #30
Senior - BHPian
 
iraghava's Avatar
 
Join Date: Oct 2005
Location: Bhaiyyaland
Posts: 8,028
Thanked: 153 Times
Default

If this goes the international way then it's going to be very bad news for young drivers as Premiums are going to skyrocket due to the higher risk associated with them. But given our Licensing system I think it might be hard to implement it as you can easily have licenses made with a fake date of birth.

But yes Insurance companies will now pressure the Auto companies to introduce more safety equipment and lower the service costs. Internationally auto companies hold meetings with Insurance comapnies and negotiate to get the car rated in the lowest rating to make it a more attractive sales proposition. And this rating is based upon the safety features, anti-theft features & servicing/spares cost.

The situation in Europe is so bad that in the UK if you are a young driver in the age group of 18-25 and live in a high risk area then you can end up paying upto ₤2,500-3,000 as Insurance premium to insure a ₤5,000-7,000 car!!

This is why manufacturers like Citreon offer free first year insurance on their small cars to attract young college going/newly employed youngsters.

Maruti is going to arm twist the dealers and so are other manufacturers because if due to the servicing/spares cost the car becomes expensive to insure then it will lose a lot of customer sales. Remember pricing is still one of the biggest deciding factors for most customers. I am trying to imagine what is going to happen to companies like Skoda, Mitsubishi, Mercedes etc. who massively overcharge for their spares & services.

But yes it will be interesting to see how it works in the Indian scenario and whether the manufacturers do something about it or the customers face the brunt.
iraghava is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Rajasthan sector naveendhyani Route / Travel Queries 5 4th November 2017 09:20
Need Info on NH2 - Dhanbad - Varanasi Sector. Captdey Route / Travel Queries 3 22nd March 2012 22:27
Diesel deregulation effect on specific car models. coldice4u The Indian Car Scene 48 16th May 2011 16:07
TOI : Rising Re makes IT sector work more spadival Shifting gears 24 20th July 2007 16:37
The Indian Auto sector is rawking! arpanjha Introduce yourself 0 8th April 2006 07:27


All times are GMT +5.5. The time now is 00:37.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks