[Dry Ice]

Originally Posted by gadadhar

Did you read it somewhere? I don't remember hearing anything similar.

This is what I got from Acko for one of my cars. Did not get it for the other - but I did get a "lockdown discount" of 300 or so when I renewed it last week.

[gadadhar]

Originally Posted by Dry Ice

This is what I got from Acko for one of my cars. Did not get it for the other - but I did get a "lockdown discount" of 300 or so when I renewed it last week.

Not bad, companies are trying to do something in this situation

Originally Posted by pganapathy

It does. When you charge 10K for insurance, 1K is a lot to refund for the company, but miniscule for the owner to receive. On the other hand when you charge 5L then 50K is big for the owner but not so bad for the company. It basically comes down to high volume low margin vs low volume high margin

I thought what matters is percentage more than the absolute numbers when it comes to discounts. Moreover 1K may not be small for me if my car premium is only 10K, and a 5L guy may not care much about for 50K.

[mukeshgoel]

Originally Posted by Dry Ice

This is what I got from Acko for one of my cars. Did not get it for the other - but I did get a "lockdown discount" of 300 or so when I renewed it last week.

Attachment 2000192

This is welcome step from Acko.

Curious to know why they have excluded someone whose policy is going to expire on on 1st April 2021.

[pganapathy]

Originally Posted by gadadhar

I thought what matters is percentage more than the absolute numbers when it comes to discounts. Moreover 1K may not be small for me if my car premium is only 10K, and a 5L guy may not care much about for 50K.

Let me put this another way. Overheads are difficult to reduce. The only way a cheap insurance company manages is high volume and low margin. They may only make 10 to 20 percent, if that much. On the other hand, a company charging 5L can potentially make a much higher margin with a low volume high margin strategy.

[gadadhar]

Originally Posted by pganapathy

Let me put this another way. Overheads are difficult to reduce. The only way a cheap insurance company manages is high volume and low margin. They may only make 10 to 20 percent, if that much. On the other hand, a company charging 5L can potentially make a much higher margin with a low volume high margin strategy.

That's a good point, overheads may not reduce much during the lock down (though the key expense is always the claim payouts). That can make it tough for the low margin players to reduce much, and the percentage can vary from.

[Cresterk]

Originally Posted by GTO

Would customers pay more during a crisis month where the claims went up? I don't think so . It would be nice to have, but I don't expect Indian insurance companies to offer any sort of benefit.

Not to mention the insurance companies outside India charge way more and the rates vary wildly as per the user and usage whereas over here, you would just lose a simple no claim bonus if you make any claims. In most other countries, your premium goes up a lot if you end up in an accident and its your fault. Also, your rates depend on your age and as well as your driving history. For example, how many driving citations like speeding tickets you have, any past accidents you may been part of; even if its not in the same car; where the car will be parked, they will even check whether a particular model of car is more likely to be involved in accidents according to statistics before they decide your rate.

It makes sense that they will reduce their rates or give some sort of bonus or kickbacks to the customer since their rates depend so heavily on usage rather than just what the price and age of the car is.

[OldWays]

Originally Posted by SmartCat

Warren Buffett’s Geico offers $2.5 billion in credits as coronavirus cuts driving

I guess there is always some legroom for folks in the US to suspend auto insurance during lock down to save some $$. There is a provision to suspend* insurance over short periods and get a refund

But this step is a welcome one to extend credits to all policy holders.

*When I am vacation (any time frame over, say 2 weeks) I always suspend my auto insurance. Just call the insurance provider, give them the storage dates and submit an online declaration to DMV (Department of Motor Vehicle) on "Affidavit of non-use" and simply suspend insurance. Call the insurance provider and revoke online affidavit with DMV on your return and you can drive the car. Insurance company processes the refund.

[charanreddy]

In ideal world yes. But in real world no. We rarely have insurers just insuring automobiles, the big houses have health and life insurance and other offerings. During the crisis time, I expect one department to cross subsidise the other. Also I suspect most insurance pricing is driven by competition any way and hence companies may not pass on the benefit but show it in their bottom line.

[Ford5]

Acko sent out a mailer saying get an extra month free coverage because of the Covid scene 2 weeks ago. But as usual, when renewing nothing of that sort happened and the customer care agent feigned ignorance about the email I recieved from them about an extra month of coverage.

She said I should speak to the “emailing department” to know more about it and that she has no clue about the extra month if renewed within certain period by the customer.

Making hay regardless of the sun shining bleak is what the insurance companies are about in our country.

[prateekchanana]

Originally Posted by Ford5

Acko sent out a mailer saying get an extra month free coverage because of the Covid scene 2 weeks ago. But as usual, when renewing nothing of that sort happened and the customer care agent feigned ignorance about the email I recieved from them about an extra month of coverage.

She said I should speak to the “emailing department” to know more about it and that she has no clue about the extra month if renewed within certain period by the customer.

Making hay regardless of the sun shining bleak is what the insurance companies are about in our country.

Even I renewed insurance for a car today via Acko and there was no such offer. The only offer I could fine was using amazon prime to get 500 discount for a 9k premium.

[Voodooblaster]

Originally Posted by Ford5

Acko sent out a mailer saying get an extra month free coverage because of the Covid scene 2 weeks ago. But as usual, when renewing nothing of that sort happened and the customer care agent feigned ignorance about the email I recieved from them about an extra month of coverage.

She said I should speak to the “emailing department” to know more about it and that she has no clue about the extra month if renewed within certain period by the customer.

Making hay regardless of the sun shining bleak is what the insurance companies are about in our country.

As per my knowledge insurance policy period cannot be extended arbitrarily.

Extension is allowed when the vehicle is Laid Up for a minimum of 60 days (Happens normally for commercial vehicles).

These rules are enforced by the Insurance Regulator IRDAI.

So Acko may have silently winded up the extended period offer.

Already Acko had run ins with the regulator.

http://https://bfsi.economictimes.in...ement/73657093

[Voodooblaster]

Meanwhile there are a few messages doing rounds in social media that some Insurance Companies are repudiating vehicle damage claims in the Covid Lockdown period using the argument that vehicle was used without relevant pass/permit from authorities. Does anyone in our Forum have such experiences ?

If the vehicle had been used for any emergency purpose the claim should be paid, obviously. Or if the vehicle had been used by any person/entity a part of the exempted services and required to be out on official duty, then also the claim should be paid.

Fun Fact: 26 APRIL 2020 is a Sunday

The actual details may have to be independently verified before reaching to a conclusion.



Admin/Moderator may start a new thread regarding this if it is independently verified and find whether the insurance company is justified in this case or if there are multiple cases like these.

Disclaimer: I am part of the Insurance Industry, but not associated with the company in question

[gadadhar]

Originally Posted by Voodooblaster

Meanwhile there are a few messages doing rounds in social media that some Insurance Companies are repudiating vehicle damage claims in the Covid Lockdown period using the argument that vehicle was used without relevant pass/permit from authorities. Does anyone in our Forum have such experiences ?

That's interesting, hope our experts can comment on this. Also need to know if this news is genuine

[AZT]

Came across below article today

If your motor cover is up for renewal anytime soon, you may be charged a lower premium

The industry is expected to report a 25-30% drop in business growth against last year. One major reason for this is drop in new business, as auto sales have taken a hit. Also, due to the lockdown, there’s been a drop in renewals.
The extended lockdown in the country in the wake of covid-19 has resulted in a sharp drop in the number of claims for general insurance companies, as policyholders mostly remained off roads. Fewer accidents in the last 60 days meant lower loss ratio for insurers.

...

Premiums started falling from April itself by almost 10-20%, said Sajja Praveen Chowdary, motor business head, Policybazaar.com

...

In developed countries like the US, major insurance companies have offered credit to policyholders as most people stayed home between March and May. That won’t happen in India, said Chowdary, as motor insurance is not the only product in insurers’ portfolios. “Covid-19 claims will hit the books of most general insurers. Most insurers have lowered the premiums, but some may not because they have to provision for their fixed costs."
Chowdary said the discounting will continue for this quarter and the next, but the extent of the discount could vary once the lockdown is lifted completely. Competition among insurers too could add to the pricing pressure.

Read More : https://www.livemint.com/insurance/n...598074431.html

[Voodooblaster]

Originally Posted by Voodooblaster

Meanwhile there are a few messages doing rounds in social media that some Insurance Companies are repudiating vehicle damage claims in the Covid Lockdown period using the argument that vehicle was used without relevant pass/permit from authorities. Does anyone in our Forum have such experiences ?

The actual details may have to be independently verified before reaching to a conclusion.

Update: Many news articles have arrived stating similar difficulties faced by customers.

https://www.businessleague.in/2020/0...d-19-lockdown/

https://www.moneycontrol.com/news/bu...n-5361231.html


https://www.financialexpress.com/mon...claim/1970030/


And one more article containing general reasons for rejection of Motor Own Damage Claims

https://www.financialexpress.com/mon...to-do/1976456/


One worrying thing is that with the exception of ICICI Lombard , no other pvt sector Insurance Companies are stating categorically that they will honour claims regardless of E-Pass. In fact other companies seem to be deciding on case by case. Even more worrying is the approach that these companies may take in Third Party claims through MACT. Third party liability often runs into Lakhs and occasionally Crores (In case of death/Permanent Disability/Grievous Injuries). If they try to repudiate using these grounds and courts accept this view, Vehicle owners may be straddled with large liabilities.


PSU(Govt Owned) General Insurers are not declining claims on this ground so far.