[pganapathy]

I got a new policy today. Asked them to do it yesterday and they quoted me 11.2K and because the inspection was done today it cost me 12.7K for a 1.6 Ford Fiesta. Increase of 1.5K. Not as much as I expected but still hurts the pocket

[Aditya]

April 1, 2016: Third-party motor insurance premiums increased. Posts moved to a new thread.

[ghodlur]

Some more bad news on the insurance premium front. The 3rd party premium is set to be raised again after the Motor Vehicle Amendment Act will be passed and in effect. This increase is to facilitate higher compensation to the victims who are a result of any accident.

http://timesofindia.indiatimes.com/b...w/53591061.cms

The primary reason for this is the substantial increase in compensation proposed in the amendments for accident victims. From the present Rs 25,000 compensation, it will be increased to Rs 2 lakh in case of death in hit and run cases.
For grievous injuries, the compensation proposed is Rs 50,000 against the present Rs 12,500. Similarly, there is a provision for payment of compensation up to Rs 10 lakh in road fatalities where the offending vehicle and the owner are identified. In case of grievous injuries, the compensation would be up to Rs 5 lakh.

Though this proposal is still in the initial stages and is up for discussion, there is a feel that this is going to be the norm in the comings days. Although this sounds a good things for the accident victims but is definitely going to put a burden on the annual premiums. The need of the hour is to revamp the motor tribunal by providing fast acting systems and process rather than increasing the premium as per the experts. As on today most of the accident related matters are settled off the court for precisely the slow court proceeding process.

[saket77]

^Bad news for motorists. And a higher GST rate will further raise the total bill. This third party premium hike has become a norm since last few years. And even with the value of my cars falling, I am paying more and more each year to cover that depreciating asset. I hope someone among the higher ups sees how that pinches the motorist population. It will also be interesting to see how much the insurance companies disburse to third party victims as compensation so as to warrant such hefty hikes every year in the TP premium.

Regards.

[lapis_lazuli]

Originally Posted by saket77

It will also be interesting to see how much the insurance companies disburse to third party victims as compensation so as to warrant such hefty hikes every year in the TP premium.

Regards.

Exactly.

Most Third Party only barebones insurance is sold by the state owned companies. These companies don't have pushy, aggressive sales agents or fleet. Yet, they have to meet rising costs especially after the pay commissions . How else is this possible? Systematically raise premiums.

Claims and disbursements through this barebones policies, are definitely not in large numbers due to the time taking and intentionally cumbersome victim unfriendly processes.

[S_U_N]

I got a shock with Bajaj Allianz told me the new premium for our 20 year old Zen is Rs. 5055. Last year, I had paid Rs. 4200.

This is a steep increase, even when NCB has gone up from 20 to 25%.

I think I need to go with third party insurance on this one.

[sumeethaldankar]

3rd party insurance to increase again.

http://timesofindia.indiatimes.com/b...w/57841138.cms via @timesofindia

[altius]

A related but slightly OT question!
My 2009 Jazz would have completed 8 years when it is time to renew insurance later this year. Does it make sense to opt only for 3rd party insurance. Even I take comprehensive insurance, in the event of a accident repair, the chances of getting a significant % of claim is very less, given the reasons - age, depreciation, wear and tear etc, the insurance company will give. So this question!

[Biohazard]

Originally Posted by altius

A related but slightly OT question!
My 2009 Jazz would have completed 8 years when it is time to renew insurance later this year. Does it make sense to opt only for 3rd party insurance. Even I take comprehensive insurance, in the event of a accident repair, the chances of getting a significant % of claim is very less, given the reasons - age, depreciation, wear and tear etc, the insurance company will give. So this question!

A while back my dad had a Fiat Sienna. However, he had bought the SX4, recently. So when the time came to renew the insurance, he only opted for the 3rd party insurance. This was done considering two factors:
1) The car was not worth a lot of we sold it.
2) It was a back up car, or only used for going close distances.

I think if we had the Sienna as the main car, we might have still opted for the comprehensive insurance.