Get ready to pay a higher insurance premium for your vehicle when you renew your cover next year. And make sure you are ready for at least a dozen probing queries from your agent regarding your personal habits, your car and even your home — yes, from 2007, your car premium will depend on all these, and more.
With a free tariff regime setting in from January 2007, your premium will go up if you smoke, drink, wear glasses, suffer from blood pressure, or are, for that matter, above 40.
These are just some of the points insurers will be keeping a tab on after the current tariff regime — wherein premium is fixed by the Tariff Advisory Committee based solely on the vehicle’s value — comes to an end.
So, be prepared to pay more if you stay in Delhi, compared with Mumbai, since the Capital has a higher car theft rate. Premiums in north India are expected to be the highest since the region makes the most claims; followed by west, east and south.
Besides, those owning vehicles whose engines are commonly used in motorboats (like Maruti Zen) or to run tubewells (Hero Honda) may have to shell out extra. Ditto for vehicles popular with taxi operators as their claim rate is high due to frequent accidents.
You can also claim discounts from your insurance agent — who will base premiums on over a dozen parameters — if your car has safety gadgets like a central locking device or a gear lock. Even a steering lock will help you score points.
The premium will also depend on where you drive — higher if you like driving to weekend getaways or prefer road to trains or aircraft when travelling out for business.
From 2007, car cover will cost more if you...
Consume alcohol Are aged over 40 Have a BP problem Wear glasses Own a model seen as ‘accident-prone’ Drive in Delhi or other N Indian cities where car theft rate is high
Don’t have secure parking space or anti-theft devices
Own ‘theft-prone’ vehicles like Maruti Zen or Hero Honda bikes: Zen engines are used for boats & Hero Honda’s for pumpsets
Own a vehicle with many plastic parts, or which can top 180 kmph WARNING
Avoid making claims this year as these will enter your claims record and jack up your premium
Park safe for lower premium
New Delhi: Get ready to pay higher insurance premium for your car from next year as even little details like having a secure parking space at home will count when the annual premium is calculated.
And, cars with loads of plastic on the bumper or mudguard will attract a higher rate. Ditto, for mean machines capable of doing 180 kmph or more. Insurance companies are busy collecting data as they prepare to file their new products and premium with the regulator — IRDA —ahead of the phaseout of the tariff regime from January 1, 2007.
From next year, the premium on the ‘own damage’ component of motor insurance — which insures against losses in accidents, theft, strike, riot, floods, to name a few — will be based on over a dozen parameters, and will vary from company to company and city to city.
Insurance company executives, however, say premium for the optional segment of the policy could go down by as much as 20% if you are not a smoker or do not consume alcohol, drive a small car with a clean track record and is not fancied in the chor bazaar.
But there is no escape from third party insurance, which covers liabilities arising from death or injury due to your car. Facing a claims ratio of 200% (insurers pay Rs 200 as claims for every Rs 100 premium they earn), firms are preparing to raise premium between 20% and 50% for private vehicles. Also, avoid making a claim this year since insurance companies will cite that as the reason for jacking up premium when you go for renewal in 2007.
With a free tariff regime setting in from January 2007, your premium will go up if you smoke, drink, wear glasses, suffer from blood pressure, or are, for that matter, above 40.
These are just some of the points insurers will be keeping a tab on after the current tariff regime — wherein premium is fixed by the Tariff Advisory Committee based solely on the vehicle’s value — comes to an end.
So, be prepared to pay more if you stay in Delhi, compared with Mumbai, since the Capital has a higher car theft rate. Premiums in north India are expected to be the highest since the region makes the most claims; followed by west, east and south.
Besides, those owning vehicles whose engines are commonly used in motorboats (like Maruti Zen) or to run tubewells (Hero Honda) may have to shell out extra. Ditto for vehicles popular with taxi operators as their claim rate is high due to frequent accidents.
You can also claim discounts from your insurance agent — who will base premiums on over a dozen parameters — if your car has safety gadgets like a central locking device or a gear lock. Even a steering lock will help you score points.
The premium will also depend on where you drive — higher if you like driving to weekend getaways or prefer road to trains or aircraft when travelling out for business.
From 2007, car cover will cost more if you...
Consume alcohol Are aged over 40 Have a BP problem Wear glasses Own a model seen as ‘accident-prone’ Drive in Delhi or other N Indian cities where car theft rate is high
Don’t have secure parking space or anti-theft devices
Own ‘theft-prone’ vehicles like Maruti Zen or Hero Honda bikes: Zen engines are used for boats & Hero Honda’s for pumpsets
Own a vehicle with many plastic parts, or which can top 180 kmph WARNING
Avoid making claims this year as these will enter your claims record and jack up your premium
Park safe for lower premium
New Delhi: Get ready to pay higher insurance premium for your car from next year as even little details like having a secure parking space at home will count when the annual premium is calculated.
And, cars with loads of plastic on the bumper or mudguard will attract a higher rate. Ditto, for mean machines capable of doing 180 kmph or more. Insurance companies are busy collecting data as they prepare to file their new products and premium with the regulator — IRDA —ahead of the phaseout of the tariff regime from January 1, 2007.
From next year, the premium on the ‘own damage’ component of motor insurance — which insures against losses in accidents, theft, strike, riot, floods, to name a few — will be based on over a dozen parameters, and will vary from company to company and city to city.
Insurance company executives, however, say premium for the optional segment of the policy could go down by as much as 20% if you are not a smoker or do not consume alcohol, drive a small car with a clean track record and is not fancied in the chor bazaar.
But there is no escape from third party insurance, which covers liabilities arising from death or injury due to your car. Facing a claims ratio of 200% (insurers pay Rs 200 as claims for every Rs 100 premium they earn), firms are preparing to raise premium between 20% and 50% for private vehicles. Also, avoid making a claim this year since insurance companies will cite that as the reason for jacking up premium when you go for renewal in 2007.