[powertrain]

MODS - I did not find an existing thread. KIndly delete/merge,if found necessary.

Hello BHP'ians,
Just read this article in ET today - http://economictimes.indiatimes.com/...w/18040231.cms

http://economictimes.indiatimes.com/...31.cms?curpg=2

Factors like profession, gender and marital status, among many others, are now being used by insurers to determine the premium. ET shows how you can bring down your auto insurance premiums

In fact, industry-watchers say your marital status and gender, too, could affect the premium figures. "In terms of demographic parameters, we have started taking into account the insured's age, gender, occupation and driving experience. Even marital status plays a role in influencing the premiums. For instance, married individuals in the age group of 32-60 are entitled to discounts as they are perceived to be more responsible drivers and we are thinking of using this as a rating parameter. They can also be counted upon to take good care of their vehicles. Discounts on the basis of such personal information can go up to 20%. Likewise, the loading on premium, too, can be as high as 20%," says Madhukar Sinha, national head, personal lines, Tata-AIG General.

So there you have it guys- If you want to lower your insurance premium,GET HITCHED!!!!

On a lighter note, just want to ask these insurance companies - " What if you are married more than once. Will you reduce premium even further??!!!
Regards,
Varun

[sgiitk]

Nothing odd in that. In the west it is your total profile which decides the premium. Age, marital status, location, how far is home from work, driving experience, car and its profile all come into the calculations.

One thing is named drivers - I am wondering whether the last will work you in India with paid drivers who frequently move.

[sa_kiran]

Originally Posted by powertrain

On a lighter note, just want to ask these insurance companies - " What if you are married more than once. Will you reduce premium even further??!!!

The premium will increase, you know why ;-)

[powertrain]

Originally Posted by sgiitk

Nothing odd in that. In the west it is your total profile which decides the premium. Age, marital status, location, how far is home from work, driving experience, car and its profile all come into the calculations.

One thing is named drivers - I am wondering whether the last will work you in India with paid drivers who frequently move.

Hello sgiitk Sir,
I do understand that there's nothing odd in it. However I'm just speculating a scenario where my insurance claim could be rejected.
Let me explain.For Eg:-
Scenario 1- I have two cars, Etios D & SX4 D. Both have rented parking spaces. One open parking & one stilt(covered) parking. Etios is generally in stilt parking & SX4 in open parking(Both are inside the building compound).
Sometimes when Dad gets home early he parks his SX4 in stilt parking & i get to park in the open one.

Lets say that while renewing my insurance policy, I lower my premium by claiming to have stilt parking. And God forbid, if once in a while, I park my car in open parking & a branch falls on my car,the insurance co. is under liberty to reject my claim.

Scenario 2-I'm sure that many of us go for rented parking spaces. We pay an x amount of money per month. Sometimes, we have to shift from stilt parking to open parking for various reasons. Again if something unfortunate happens to the car, the insurance co. has a perfect reason to reject claims.

BHP'ians, your views please.

Originally Posted by sa_kiran

The premium will increase, you know why ;-)

Hello Kiran,
You're right, it will increase!!
Regards,
Varun

[avira_tk]

This is typical insurance rip off, profit is measured by how much they don't pay. Factoring in depreciation, you barely get anything for a repair. The companies quoted here offer nothing like the 30% discount, more like 10%, whatever the dicount, premium is roughly 2% of IDV.

The western approach to insurance is just box ticking after fiddling with statistics. These guys won't be in the busines if they were making losses.
The diesel to petrol facts are rubbish, premium will vary by about 2000/year for most cars, consider that as part of running expenses, you will recover all that and more when you sell your diesel car.

[sa_kiran]

Car insurance cost to go up by up to 10%.

http://www.dnaindia.com/mumbai/repor...medium=twitter

[Dry Ice]

Originally Posted by powertrain

Lets say that while renewing my insurance policy, I lower my premium by claiming to have stilt parking. And God forbid, if once in a while, I park my car in open parking & a branch falls on my car,the insurance co. is under liberty to reject my claim.

A branch can fall on the car anywhere right? Not just at your home parking space. If you can get the car to the workshop, not sure if they can still deny the claim on this ground.

About the article, well, a 34 year old married lady doctor driving an i20P would be gaining the most from this I guess!! :-)

[ghodlur]

Although the Third Party Liability is more or less governed by the IRDA regulations, its the Own Damage which is flexible and in the hands off the Insurer. If Insurer would start to offer discounts above the existing ones, their collection of premium and subsequent claim ratio is affected.

Also marking professions as being responsible drivers on roads is something which is incorrect. What would stop a Doctor/software professional from speeding?

[powertrain]

Originally Posted by Dry Ice

A branch can fall on the car anywhere right? Not just at your home parking space. If you can get the car to the workshop, not sure if they can still deny the claim on this ground.

Hello Dry Ice,
But then, don't you think buddy that, this is a big risk for the insurance co. In that case, everyone will claim to have stilt parking and take benefit of lower premiums & if something happens,the insurance co. will have no way to verify their claims.
BHP'ians your views,please

Regards,
Varun

[Dry Ice]

Originally Posted by powertrain

Hello Dry Ice,
But then, don't you think buddy that, this is a big risk for the insurance co. In that case, everyone will claim to have stilt parking and take benefit of lower premiums & if something happens,the insurance co. will have no way to verify their claims.
BHP'ians your views,please

Regards,
Varun

I don't know the weightage they might be giving to this factor, if at all, they give discounts for covered parking space. Like its mentioned, the discount can be offset by a higher premium due to some other factor on your profile. The company can always find some excuse to jack up the premium even after this discount. So the company is not taking such a big risk after all.

Now if there is some clause that allows them to deny claims like these, then it's a risk. They may just put the onus on us to prove it didn't happen at our residence (provide them photographs of the place, maybe).

[MileCruncher]

All these have been in the works for a long time but IRDA hasn't approved these guidelines as yet. Let's see what happens.

[vb-saan]

I guess it’s a good initiative. I have heard that in some countries even the color of the car could impact the insurance premium (vaguely remember Mr. Clarkson mentioning about higher insurance premium for red color cars in the UK)

[sgiitk]

On a not so light note; One thing for sure, profession with the highest premium - Lawyers!!