[sgiitk]

The issue is that truckers go to war every time the premia for third party are hiked. Most of the shortfall is also due to them.

[sgiitk]

@ghodlur; At least two of my cars with Sundaram (through Honda) but they never talk of these possibilities.

[ghodlur]

One more shocker proposal in the offing.

There is a proposal in the new Road Safety bill which is going to replace the Motor Vehicle Act about capping the maximum payout of Rs 15 L to the victim involved in accident. The victim's beneficiary is not going to get more than 15L in payout. According to current norms of the Motor Vehicles Act, there is no limit on the liability of insurers in motor third-party accidents. Due to this, a victim can claim any amount in these cases and if the insurer refuses to pay, they can approach the court. Till now it was unlimited compensation as decided by the Motor tribunal court and based on the earning capability, age and dependants of the victim. Going forward it is proposed that if vehicle owner needs unlimited liability, they will have to pay for it which culminates is higher premium. Unlimited TPL liability will be offered as add on cover too.

The Third Party liability for damage to property till now is Rs 7.5L.

http://www.business-standard.com/art...2401384_1.html

http://www.business-standard.com/art...2401413_1.html

[ghodlur]

The final rates for the TP premium is released by IRDA as follows:

Motor Third Party Insurance Premium Rates with effect from 01st April 2015

Premium with effect from 01st April 2015 (Rs.)

Private Cars

Not exceeding 1000 cc 1468
Exceeding 1000 cc but not exceeding 1500 cc 1598
Exceeding 1500 cc 4931


Two Wheelers

Not exceeding 75 cc 519
Exceeding 75 cc but not exceeding 150 cc 538
Exceeding 150 cc but not exceeding 350 cc 554
Exceeding 350 cc 884

The document attached shows the details further.

Sorry for the poor formatting.

[GTO]

Originally Posted by ghodlur

The final rates for the TP premium is released by IRDA as follows

Absolutely ridiculous! This year, I'm going to pay 6k for the third-party insurance of my Jeep. That is steep. In 2011, I paid merely 3.2k. In 2012, it was 3.4k.

At this rate, I'll be soon paying 10,000 bucks for basic liability insurance on a car that has never made an insurance claim in 18 years!

[ghodlur]

It is that part of the year which most motorists dread and the guess is right - hike in TPL premiums. Come April 1, we will be seeing a hike in the third party liability premium. How much is any one's guess. Lot depends on IRDA who will come out with the final figures in April 2016.

Insurance premiums might rise by nine to 30 per cent across categories in private cars, two-wheelers and commercial vehicles, with the Insurance Regulatory and Development Authority of India (Irdai) proposing a revision in motor third-party premiums

For private cars, with engine capacity not exceeding 1,000cc, the rise proposed is 30 per cent. For those exceeding 1,000cc, it is 25 per cent.

For two-wheelers, there would be a rise of 10-15 per cent for vehicles up to 350cc, while a 10 per cent drop has been proposed for vehicles exceeding 350cc

For commercial vehicles, a rise of 25-30 per cent has been proposed. Insurers say claims are high in this segment.

http://www.business-standard.com/art...0401190_1.html

[null]

The way these guys are hiking insurance premiums, I guess it makes sense to pay up in full (say like 15K premium) and claim for 40-50K each year for the car (I know it is not being ethical, but what do we do when they fleece us). The whole benefit of NCB is lost if they hike the fixed third party part (while the IDV goes down & hence NCB saving too diminishes further).

They should give an explanation on why they should be allowed to hike the Third Party premium yet again.

[Dry Ice]

Originally Posted by ghodlur

It is that part of the year which most motorists dread and the guess is right - hike in TPL premiums. Come April 1, we will be seeing a hike in the third party liability premium. How much is any one's guess. Lot depends on IRDA who will come out with the final figures in April 2016.

What's the logic in increasing more for smaller vehicles (cc) ? Or are they taking into account the final premium payable and trying to fix it for all the vehicles at the same level - which could explain the different percentage point increase?

[mi2n]

Originally Posted by Dry Ice

What's the logic in increasing more for smaller vehicles (cc) ? Or are they taking into account the final premium payable and trying to fix it for all the vehicles at the same level - which could explain the different percentage point increase?

Maybe they presume that first time buyers and new drivers opt for smaller vehicles, less than 1000cc. New owners/drivers are more likely to cause damage to properties. Maybe they have statistics that this segment too, like the commercial segment account for more third party claims.

[speedmiester]

Insurance premiums are set to increase by up to 30% from April 1st 2016.

It is getting steeper and steeper each year, the NCB has little to no value if the premiums are increased year on year.

Third party motor cover may set you back by 30%

[ghodlur]

Check this info which talks about the Insurance co statistics. Ignore every thing else other than Motor Insurance. it can be seen that Insurance co did make a profit when it came to motor insurance. Hence the logic of Insurance co making a loss in TPL and making a case for TPL premium hikes is totally unjustified. My guess is the strong Insurance lobby is forcing the regulator i.e IRDA to hike the TPL premiums to fill their coffers. In fact there has been a marginal increase in the motor claims % from 81.4 in 2013-14 to 81.9% in 2014-15. Its yet to be known whether there has been a further increase in the % for the year 2015-16 to warrant a hike in TPL premiums.

[scuderiamania]

Originally Posted by ghodlur

Check this info which talks about the Insurance co statistics. Ignore every thing else other than Motor Insurance. it can be seen that Insurance co did make a profit when it came to motor insurance. Hence the logic of Insurance co making a loss in TPL and making a case for TPL premium hikes is totally unjustified. My guess is the strong Insurance lobby is forcing the regulator i.e IRDA to hike the TPL premiums to fill their coffers. In fact there has been a marginal increase in the motor claims % from 81.4 in 2013-14 to 81.9% in 2014-15. Its yet to be known whether there has been a further increase in the % for the year 2015-16 to warrant a hike in TPL premiums.

The statistics that you have attached only considers claims made as a percentage of total premium receipts. However we must not forget that claims paid by an insurance company is not its only expense. There are administration costs, commission on premium earned, etc. Also the people who are investing into the insurance sector obviously expect decent returns on their investments.

So what we need to look at is what the RoI is for motor vehicles division of the insurance sector.

Then only can we come to a conclusion as to whether we are being over charged for insurance or not.

[ghodlur]

Originally Posted by scuderiamania

The statistics that you have attached only considers claims made as a percentage of total premium receipts. However we must not forget that claims paid by an insurance company is not its only expense. There are administration costs, commission on premium earned, etc. Also the people who are investing into the insurance sector obviously expect decent returns on their investments

What I wanted to highlight was there is no Insurance co which had projected loss i.e claims paid were more that the premium recd considering only the Motor Insurance. Even if this means that the balance expenditure was towards what you called administration charges, they still are not losing money to warrant a change of premium charges be it OD premium or TPL premium. This refutes the annual cry call given by the Insurance co to the IRDa to hike the premium charges. Or are they expecting that in the coming year they would expect a higher expenditure toward claim settlements and hence would like to play safe and be more in the green zone.

[Guna]

Third party insurance increased
http://economictimes.indiatimes.com/...w/51595850.cms

[condor]

Edit: AGAIN ??

http://www.business-standard.com/art...0500284_1.html

Today a large % of owners go for third party only coverage. a better approach - double TP coverage, but give a discount in this component for those who have Comprehensive coverage.