Team-BHP > Team-BHP Reviews > Indian Car Loans & Insurance


Reply
 
Thread Tools Search this Thread
Old 4th October 2012, 08:43   #1
Senior - BHPian
 
ghodlur's Avatar
 
Join Date: Sep 2009
Location: Thane
Posts: 5,428
Thanked: 2,809 Times
Default FM to cap the Third party liability, IRDA supports

There was an article in the newspaper where the Finance Minister is planning to do away with the present unlimited Third Party liability and put a cap of Rs 10 Lakh. This is mainly because of the Insurer lobby which is running into losses owing to the unlimited TPL presently available. This is a serious blow to the motor insurance buyers although it is not yet clear who would pay the excess of Rs 10L liability in case of any TPL claims.

Also proposed is the time limit for the claims reporting arising out of motor insurance which at present is un limited, there is a proposal to limit it to a max of three years. So any reporting of claims beyond 3 years will not be entertained by Insuracne companies.

More details in the link below.
http://www.dnaindia.com/money/report...ty-cap_1748094

What do the BHPians feel about this?
ghodlur is offline   (1) Thanks
Old 4th October 2012, 10:37   #2
Senior - BHPian
 
Join Date: Jan 2012
Location: Bangalore,Coorg
Posts: 1,063
Thanked: 697 Times
Default Re: FM to cap the Third party liability, IRDA supports

Pure and simple it is a financial decision by the insurance companies. However, we also need to remember that the insurance companies will raise rates if they consistently keep losing money on third party deals.

The idea of limiting a claim to three years is something that gets complicated. In its purest sense it really shouldn't take more than a few months at most for an insurance case to be filed. Also, the longer a case takes to file, the more chance there is of people forgetting events. On the other hand, denying justice because of a time delay is another issue entirely.
pganapathy is offline  
Reply

Most Viewed
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Copyright 2000 - 2020, Team-BHP.com
Proudly powered by E2E Networks