Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums! On a slightly off-topic note, the recent drastic increase in third party premiums by IRDA appears completely illogical. They keep saying that there are huge increases in claims, but 50-100% increase in one year for private cars?
I think T-BHP as an association of interested car owners must file their objections to this.
First off IRDA should release the category-wise claims provisions and premiums. They conveniently do not do this. I find it very hard to believe that private cars alone contributed to 50-100% increase in third partly liability over one year. Further they have substantially reduced the third party property liability to only Rs. 7,50,000/- (a few years earlier it was unlimited too) even though they have increased premiums manifold.
Thirdly they must collect data from RTOs and Insurance companies all over India to determine which vehicles remain uninsured. With almost all RTOs and insurance companies being computerised, this data matching (or mismatching) also should be very easy to do. This number I believe is as high as 50% or more. Once they start collecting premiums from all the uninsured vehicles, there will be a huge increase in premiums collected which will easily offset any losses and will actually result in overall premiums coming down which again will encourage more owners to buy the insurance.
Fourthly, IRDA must release 10 year statistics to show the category-wise details of third party claims provisions made and actually paid out. Often the claim is reduced by the MACT as per norms.
IRDA must implement a system of driving license data against claims and implement a NCB system based on driveras well as owner. If a driver is perpetually rash, and you try and endorse that driver on a policy, an automatic loading should occur. This will also serve as a major deterrent and encourage safer/defensive drivers and ultimately save a lot of lives.
Instead of following all these logical steps, we only find the regulator (with all due respect) simply trying to increase premiums where there may be least resistance (read private car owners as like all govt. bodies) to cover up inefficiencies in the system, and allowing a party for the insurance companies, brokers and agents through increased commissions and expense ratios.
I again re-iterate - GTO, etc. and T-BHP must collectively take this up strongly at the IRDA and FM levels.
Last edited by sandeep108 : 21st February 2014 at 11:02.
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