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Old 11th January 2016, 09:13   #1
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Unhappy Motor insurance to cost up to 15% more in metro cities

Now this was expected. Post the Chennai flood Motor Insurance claims which seems to have hurt the Insurance co a lot more than expected, Motor Insurance in the major metros like Chennai, Mumbai, Delhi etc will be going to cost more by 15%.

Simple clogging due to rain water can enter basement parking and result in claims." Various parameters, including geography and fuel type, are considered while pricing the motor insurance policy.

Chennai floods have resulted in record claims of Rs 1,500 crore due to damage to cars, which is more than double of what insurers faced during the Mumbai floods in 2006
The claims have already exceeded that of Jammu & Kashmir and Uttarakhand floods where there was a hit of Rs 1,500 crore each time for the industry: the claims from Chennai floods have already touched close to Rs 3,000 crore
So brace for a higher Can Insurance in the new year. I guess the TPL premiums will also see a rise.

More details in the link below:

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Old 11th January 2016, 09:23   #2
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Default Re: Motor insurance to cost up to 15% more in metro cities

Im sure Bangalore prices cannot be very far behind either.
Insurance and Zero Dep, together are quite expensive, irrespective of the make of car.
While Comprehensive Insurance Premium becomes lower each year for a few years because of IDV depreciation + NCB, the Zero Dep pretty much stays constant so once you reach the Cap of 50% NCB, the premium pretty much remains constant.
But, to me, it is sensible to keep the IDV at a fair level, depending on your usage and maintenance of the vehicle.
Better to pay a proper fair premium and ensure the vehicle is safe, rather than try and penny pinch on this essential need. Also, it is good to take out comprehensive insurance for all passengers that one may be taking around - for a small extra premium, every occupant gets covered in the event of traumatic times.
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Old 11th January 2016, 09:27   #3
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Default Re: Motor insurance to cost up to 15% more in metro cities

Third Party premium being the only mandatory component, would be the component that can get more revenue to the companies. Many people today buy only this to keep their premium low. Companies can increase the TP premium, but give a discount if a customer goes for comprehensive coverage.
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Old 11th January 2016, 14:49   #4
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Default Re: Motor insurance to cost up to 15% more in metro cities

A swallow does not make summer. So one city may have some impact on Comprehensive Premia. I do not expect and impact on TP (actually act only) premia, since they have no role in these claims. Also, Act premia were hiked quite substantially about a year ago.
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