[ghodlur]

Some good news for Motorists. For a change IRDAI has proposed to reduce the Third Party Liability (TPL) premium for the year 2018-19. The proposal is still in draft stage and yet to be finalized. However this reduction in premium would be applicable for cars with engine capacity less than 1000cc and 2 wheelers with engine less than 75cc. For the rest of the grades, there is expected no change in the existing rates. I am sure even these would see a minor change if not significant. The e-rickshaws and super bikes can see an hike in the TPL premiums.

The draft proposes to increase the premium on e-rickshaw from the existing Rs 1,440 to Rs 1,685 in the next financial year starting April 1.

The regulator has proposed to lower the premium for third-party insurance, which is mandatory, on cars with engine capacity of less than 1,000 cc to Rs 1,850 from the existing Rs 2,055.

The draft does not propose any change in the existing rate for cars with engine capacity higher than 1,000 cc.

If the draft is approved, the premium on two-wheelers with less than 75 cc engine will fall to Rs 427 from the current Rs 569. No change has been proposed for entry level bikes (75 to 150 cc).

The Irdai proposes to more than double the premium on super-bikes (exceeding 350 cc) to Rs 2,323. Also, an increase has been proposed in the case of performance category bikes (150-350 cc).

The exposure draft said that in case of vintage cars, a discount of 50 per cent would be allowed for private cars certified as 'vintage cars' by Vintage and Classic Car Club of India.

https://www.businesstoday.in/current...ry/272204.html

[bhavik.1991]

Thank you for sharing.
I won't say it's a good news for motorists. How many % of people own cars <1000 cc & two wheeler <75 cc? I bet it would be a single digit number. On the other hand, significant number of people own bikes >= 150 cc who need to shell out more money for third party premiums.

[ghodlur]

Originally Posted by bhavik.1991

I won't say it's a good news for motorists. How many % of people own cars <1000 cc & two wheeler <75 cc? I bet it would be a single digit number. On the other hand, significant number of people own bikes >= 150 cc who need to shell out more money for third party premiums.

There's some positiveness around the news. I am hoping that the reduction in TPL premium rates will be replicated in all engine categories however small for 4 and 2 wheelers.

[kimmig]

In the US etc claiming against a TP insurance is quite smooth. If you ever get even into a minor scrap, both parties exchange their insurance nos and have the insurance companies deal with it smoothly.

However, it is notoriously difficult to get a TP claim in India, going to the MACT is just not feasible in most cases. I personally do not know anyone who has even ventured close to the MACT leave alone successfully pursue a claim. Not even sure how many motorists are even aware of the existence of the MACT and the process to be followed.

Here's an interesting article on the same with some interesting insights from Insurance company officials about TP claims
https://www.businesstoday.in/moneyto...ry/187457.html

Each year while the IDV of the vehicle goes down, the overall insurance premium goes up as the TP component is increased by leaps and bounds. General insurance companies collected Rs 26,523 crore under the third party motor segment in 16-17 alone. The claim ratios in third-party motor insurance is around 140 per cent (for every ₹100 collected as premium, the insurer pays out ₹140). One can't but wonder how much is actually disbursed and to whom?

As per the article referenced above, average claim amount from 2004-2010 was max around 2 Lakhs with about 61,000 claims and I presume these are annual numbers. Even if the average claim amount has doubled in 2018 to say 4 Lakhs, about 6.5 Lakhs claims would need to be paid out. If you factor in the claim ratio, this number swells to 9.5 Lakhs.

http://pib.nic.in/newsite/PrintRelea...x?relid=170577
Road accidents in the country have decreased by around 4.1% during 2016, with the year seeing 4,80,652 road accidents as against 5,01,423 in 2015. However, fatalities resulting from these accidents have risen by about 3.2% during the same period. Nearly 1,50,785 persons were killed in 2016 as against 1,46,133 in 2015.

Do these numbers add up? Are so many claims really being pursued and granted and to whom? Something somewhere does not sound right, looks like the makings of a huge scam.

[Zappo]

Originally Posted by kimmig

Do these numbers add up? Are so many claims really being pursued and granted and to whom? Something somewhere does not sound right, looks like the makings of a huge scam.

I think you are mixing up two very different things here. The TP claim in India is very different from the US where you trade your Policy number with the other person and let insurance deal with it. Here you can't claim damage for your car from the other person's insurance in case of an accident. The TP claims here are meant for the 3rd party damages and not the 1st and 2nd party who were involved in the accident.

If your vehicle kills or maims a person for life or badly damages someone else's property then such an aggrieved party can approach the motor vehicles' tribunal for a suitable ruling to grant relief to him/her from the TP insurance of the perpetrator vehicle. In most cases these are huge claims running into lakhs.

[kimmig]

Originally Posted by Zappo

I think you are mixing up two very different things here. The TP claim in India is very different from the US where you trade your Policy number with the other person and let insurance deal with it. Here you can't claim damage for your car from the other person's insurance in case of an accident. The TP claims here are meant for the 3rd party damages and not the 1st and 2nd party who were involved in the accident.

If your vehicle kills or maims a person for life or badly damages someone else's property then such an aggrieved party can approach the motor vehicles' tribunal for a suitable ruling to grant relief to him/her from the TP insurance of the perpetrator vehicle. In most cases these are huge claims running into lakhs.

Ohh ok. Thanks for the clarification .. Have always understood TP insurance to be applicable when you cause damage to another person / property.

Btw, am not sure if your interpretation "The TP claims here are meant for the 3rd party damages and not the 1st and 2nd party who were involved in the accident. " is correct.
https://www.businesstoday.in/moneyto...ry/187457.html

[h14]

Originally Posted by ghodlur

The exposure draft said that in case of vintage cars, a discount of 50 per cent would be allowed for private cars certified as 'vintage cars' by Vintage and Classic Car Club of India.

This is something I'm keen to know. Can someone shed some light on how a non VCCCI member can avail this?

[TusharK]

IRDAI reduces 3rd-party insurance for cars and bikes

Earlier this month, the Insurance Regulatory and Development Authority of India (IRDAI) had proposed a reduction in the third-party liability (TPL) insurance premiums on select cars and bikes. IRDAI has now announced the revised TPL premiums for FY2019, which will come into effect from April 1, 2018. While insuring certain cars and bikes will now be cheaper, premiums for select commercial vehicles have been hiked.

Third-party insurance premium for cars with engines smaller than 1,000 cc has been reduced by 10% to Rs. 1,850 and for cars within the 1,000-1,500 cc bracket is Rs. 2,860. Premium for cars with engine capacity larger than 1,500 cc is Rs. 7,890.

TPL premium for 2-wheelers under 75 cc has gone down by 25% to Rs. 427. The premium for 2-wheelers in the 75-150 cc category is set at Rs. 720 and for those in the 150-350 cc bracket is Rs. 985. TPL premium for 2-wheelers above 350 cc is Rs. 2,323.

The rates for commercial vehicles like trucks have gone up by 20-30% across the different categories. In the 3-wheeler category, e-rickshaw owners will now have to shell out Rs. 3,175 while the premium for goods / public carriers with a capacity exceeding 40,000 kg has been set at Rs. 38,308. The premium for agricultural tractors up to 6 HP has also been raised from Rs. 653 to Rs. 816.

Link to Team-BHP News

[ghodlur]

Just as one started relaxing that there would be no change to the 3rd party liability premiums, here comes a jolt. IRDA planning to hike the TPL premiums by almost 10-20% but for specific segments.

The premium rates for third-party motor insurance may see an increase of 10 per cent in 2019-20 at least for some vehicle segments, even as insurers suggest the use of telematics to decide costs for customers.

Meanwhile another headache proposed.

The committee is also expected to have suggested a revised classification of vehicles, which would impact their premiums

The premium rates would be available by the end of the March month and would be applicable from April 1st.

More details in the link.
https://www.thehindubusinessline.com...le26513465.ece

Mods: Kindly change the thread title to "IRDAI proposes hiking 3rd-party premiums for cars & bikes"

[ghodlur]

As was expected in the election year, IRDA has put off the decision to hike the Third party Liability premium hike for now. The premium rates for call categories will remain the same as the last year.

https://economictimes.indiatimes.com...w/68619630.cms

https://timesofindia.indiatimes.com/...w/68623301.cms

Mods: Kindly change the thread title to "IRDAI does a U turn, proposed hiking 3rd-party premiums for cars & bikes put off"

[NAVREVV]

Folks,

IRDAI has “Proposed” another Third Party Premium hike for FY 2019-20. The impact is largely going to be on cars below 1500 CC where IRDAI has recommended for a hike. Pls do through the IRDAI circular as attached.

PS:- This is just a proposed recommendation and not yet the final decision to hike but most likely it will get implemented.

[vigsom]

^^ It is an absurd practice to have 3 classes of cars and charge (1001cc to 1500cc)*3 as Liability only premium for cars over 1500cc.

Instead, the potential of the car to cause damage should be based on PS/ton or some other historical data like cars more prone to accident.

Some weightage should also be given to the track record of drivers; yes, the NCB is there but something similar should be rolled out on Liability only policies too.

Eg. i was told that the Nissan Maxima in the UAE used to attract a higher premium since it was high on testosterone.

[volkman10]

IRDAI proposes 3 yrs insurance cover for cars, 5 yrs for two-wheelers.

The premium for the entire term of the policy coverage would be collected at the time of sale of insurance.

Link