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Old 12th October 2018, 11:39   #16
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Default Re: Accident cover for vehicle owners raised to Rs. 15 lakh

Originally Posted by shrikantbhogale View Post
It is good that better sense has prevailed for the IRDAI and they have made it optional.
I am not able to find the statement which says that personal accident cover is optional. I see that two wheeler vehicle owners given the choice to opt for a one-year Compulsory Personal Accident (CPA) cover or long-term CPA cover.

Originally Posted by shrikantbhogale View Post
The amount the Insurance co. will pay will be related to the income of the injured/deceased so if he has a Term insurance already up to max limit, making him compulsorily buy personal accident cover bundled in TP policy amounts to looting
Sorry for a noob question. Is there any rule which says that there is cap on the insurance cover?

As far as I understand ones income is considered for financial underwriting and their health condition is considered for medical underwriting. If one can prove he/she is not buying the insurance to make profit out of it i think one can get life cover as much he/she requires. Usually the cover will be upto 25X the annual income for one policy and I do not think that there is nothing stopping someone from buying another policy for the same cover. But they will have to declare about the first policy when they buy the second one.

With term insurance one can opt for the accidental cover rider which will increase the cover by a significant amount.

Originally Posted by saket77 View Post
Your advise is perfectly OK given that the insured is within the calculated sum assured based on his yearly income. My point is what if I'm fully insured to the point my yearly income allows?
Agree with your views Saket. Yes there will be a drop in number of people who opt for insurance.

My belief of drop in premium was based on economies of scale. I hope they leverage technology like telematics based insurance to profile drivers and reward drivers in low risk category.

The number of road fatalities in India is the highest in the world. Also, the penetration of insurance in India is quite poor and it among the lowest in the world. So if you look at the bigger picture a majority of the accident victims depend on compensation from TP or government now. Since courts see a lot of such cases, may be they decided that higher compensation would be ideal. May be this is done to bring more people into the kitty and offer them a higher compensation

Also I forget to mention in my previous comment about the hassle in claiming TP. May be even you will agree that a good compensation of 15 lakh would provide a better assistance for the family while they fight for a higher compensation using TP cover.

Your view is considering the folks who make a decent living and insure themselves. For them this additional 15 lakh might or might not make a big difference. But if you consider the lower income group like for eg the drivers, they will not have insured themselves. For them 15 lakh will be a huge sum. So this mandate will be benefit for those who do not insure themselves and even for people who under insure themselves.

Considering the bigger picture, I am for this mandate but I do feel that premium is on the higher side. I rest my case
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