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

Thread Tools Search this Thread
Old 19th December 2014, 15:50   #1
Senior - BHPian
ghodlur's Avatar
Join Date: Sep 2009
Location: Thane
Posts: 5,419
Thanked: 2,786 Times
Default Auto firms plan insurance cover against increasing recall costs

Its a known fact that every major car manufacturer in India has recalled cars due to technical issues either known or reported. With the government thinking of making recalls mandatory for the domestic market by passing a legislation and Motor Vehicle act being modified to include the recalls, car manufacturer and auto parts suppliers are contemplating of buying Insurance cover against the increasing costs involved in the recall process.

SIAM had introduced a voluntary code in July 2012 for the manufacturers to initiate recalls for issues, since then almost 6L cars have been recalled by manufacturers to address the recall issues. Maruti Suzuki has spent close to 65 Cr to address the recall expenses. Vehicle recalls directly had an adverse impact on the Auto parts manufacturers as their bottom line are severely impacted with the claims from the manufacturers.

More details of the manufacturers dilemma related to recall expenses is mentioned in the link. This is a positive step in the right direction if a Insurance cover is in place which will prompt car manufacturers to initiate recall with the customer being directly benefitted in terms of better safety and maintenance costs.
ghodlur is offline   (2) Thanks Reply With Quote

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Increasing your Car's IDV during insurance renewal -Whats your take? VMC Indian Car Loans & Insurance 37 20th December 2017 21:11
Indian Design Firms being hired by VW, Skoda, Nissan, Chrysler etc. wilful The Indian Car Scene 9 21st September 2014 13:18
Should IT/ITes/BPO firms enjoy exemption from Industrial Employment Act? WindRide Shifting gears 1 25th September 2012 17:24
Are the Oil firms ready for Euro-IV? .anshuman Technical Stuff 58 22nd September 2010 11:55

All times are GMT +5.5. The time now is 16:26.

Copyright 2000 - 2019,
Proudly powered by E2E Networks