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Akash1886 14th February 2015 10:28 PM

3rd Party Motor Insurance To Be Expensive From April-2015
 
Friends,

If you are planning to buy a vehicle, be it a 2 wheeler or 4 wheeler or even a commercial vehicle then be ready to pay extra for the 3rd party insurance from 1st April 2015. The rise is expected to be around 20-25% as a report from Business Standard claims. Earlier last year, in 2014 this 3rd party insurance amount had already been hiked so this turns out to be yet another hike in 1 year span itself.

Quote:

For 2015-16, general insurers have sought atleast 40% increase in motor TP premiums. Senior industry executives said that segments like two-wheelers and auto-rickshaws where there have not been very large claims could be incentivised with a lower rate of premium hike while it could be higher for commercial vehicles.

The insurance regulator brings out the draft proposal for increase the premiums for motor TP segment. Later, they take into consideration the insurer's concerns and also that of consumer forums, while arriving at a price hike formula based on the claims in the category, be it two-wheelers, private cars, taxis, auto-rickshaws and trucks among others.
Link

Regards

Akash

Suryaputhra 29th March 2017 09:07 PM

Third party motor insurance premium rates set to go up to 50% from April 1, 2017
 
1 Attachment(s)
Third party motor insurance premium rates set to go up to 50% from April 1, 2017, IRDA proposal confusing, its just third party or any other cumulative charges are increased any how total premium will be increased as of now below are the know details from policybazaar.

-suryaputra

harishankar 29th March 2017 09:14 PM

Re: Third party motor insurance premium rates set to go up to 50% from April 1, 2017
 
Coming from insurance industry, I can say that management of insurance companies welcome this, because the payouts in Motor TP claims have been going up year after year. Motor is a loss-making portfolio for insurers and they try their best to limit their outgo. Increasing the revenue is one way to reduce the loss in this area.

Regarding your query, this is only an increase in Third party liability premium portion of the policy. Insurers will continue to control the premium in own-damage section of comprehensive policies. Of course, the resultant service tax + cess will increase slightly in proportion. The proposal will affect only cars with engine capacity > 1000 cc.

At least I believe that is the logic. I am not privy to internal financial documents of course. ;)

Suryaputhra 29th March 2017 09:19 PM

Re: Third party motor insurance premium rates set to go up to 50% from April 1, 2017
 
If we renew the insurance before the 31st MARCH 2017, would we asked to pay the difference of the increased third party premium after the April 1 increase.

-suryaputhra

harishankar 29th March 2017 09:26 PM

Re: Third party motor insurance premium rates set to go up to 50% from April 1, 2017
 
Quote:

Originally Posted by Suryaputhra (Post 531921)
If we renew the insurance before the 31st MARCH 2017, would we asked to pay the difference of the increased third party premium after the April 1 increase.

-suryaputhra

I think the premium is affected by the date of policy inception and not the date of premium payment. So if your policy inception/renewal is dated prior to 1 April, I think you will pay the older premium.

Suryaputhra 29th March 2017 09:35 PM

Re: Third party motor insurance premium rates set to go up to 50% from April 1, 2017
 
Some how Govt rules are not allowing year to year premium to go down even IDV value reduces and NCB increases. Every year the premium is more or less the same. Intelligent play by Govt.

-suryaputhra

yoscenario2000 30th March 2017 01:24 PM

Re: Third party motor insurance premium rates set to go up to 50% from April 1, 2017
 
Quote:

Originally Posted by harishankar (Post 531922)
I think the premium is affected by the date of policy inception and not the date of premium payment. So if your policy inception/renewal is dated prior to 1 April, I think you will pay the older premium.

My vehicle insurance policy is due on 26 April 2017, but as per rules I can renew my policy one month prior to the expiry date.

So I renewed it yesterday. As mentioned earlier in this thread, increase in premium rates are w.e.f 01 April 2017.

Now I'm wondering if I need to pay that increased premium amount since date of effective renewal is after 01 April 2017.[confused]

I'm having only TP insurance, and every year it keeps increasing compared to last year.[roll]

Monosigma 30th March 2017 10:12 PM

Re: 3rd Party Motor Insurance To Be Expensive From April-2015
 
Will there be a rollback of this hike given the Hullabaloo in the transport industry.

allhyundaicars 1st April 2017 10:25 AM

Re: 3rd Party Motor Insurance To Be Expensive From April-2015
 
There has been an increase of 2800rs for the insurance of elantra ( 1490 ex showroom).

harishankar 1st April 2017 01:18 PM

Re: Third party motor insurance premium rates set to go up to 50% from April 1, 2017
 
Quote:

Originally Posted by yoscenario2000 (Post 531989)
My vehicle insurance policy is due on 26 April 2017, but as per rules I can renew my policy one month prior to the expiry date.

So I renewed it yesterday. As mentioned earlier in this thread, increase in premium rates are w.e.f 01 April 2017.

Now I'm wondering if I need to pay that increased premium amount since date of effective renewal is after 01 April 2017.[confused]

I'm having only TP insurance, and every year it keeps increasing compared to last year.[roll]

Hm... Let me seek some clarity on this point from our underwriting department and I will get back to you.

Suryaputhra 2nd April 2017 10:57 AM

Re: Third party motor insurance premium rates set to go up to 50% from April 1, 2017
 
Quote:

Originally Posted by harishankar (Post 531922)
I think the premium is affected by the date of policy inception and not the date of premium payment. So if your policy inception/renewal is dated prior to 1 April, I think you will pay the older premium.

My premium increased by Rs.1000+ after 31 March renewal. When I got online quote from maruti insurance for swift dzire 2015 zxi model before 31 march it is Rs.13938 but after April 1 it is 14967.

-suryaputhra

soap 3rd April 2017 01:04 AM

Re: 3rd Party Motor Insurance To Be Expensive From April-2015
 
If the insurance premium increases, the chances of me making an insurance claim increases because I would have paid more and going through insurance would be financially feasible in more number of cases now. If the NCB does not increase substantially (can someone confirm on this point?), the probability of claiming insurance would increase further. So, how are the insurance companies going to reduce their losses in auto insurance domain?

I am fairly confident many people outside metros would just stop buying insurance. So, the revenue to this auto insurance companies would decrease.

We Indians are sure to come up with some 'innovative' ways to mitigate the damage from the increase in insurance premium


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