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Motor insurance to cost up to 15% more in metro cities

Discussion in 'Insurance & Loan Reviews' started by ghodlur, Jan 11, 2016.

  1. ghodlur

    ghodlur Esperto

    Messages:
    2,317
    Thane
    Now this was expected. Post the Chennai flood Motor Insurance claims which seems to have hurt the Insurance co a lot more than expected, Motor Insurance in the major metros like Chennai, Mumbai, Delhi etc will be going to cost more by 15%.

    So brace for a higher Can Insurance in the new year. I guess the TPL premiums will also see a rise.

    More details in the link below:

    http://economictimes.indiatimes.com/...w/50211896.cms
  2. carl_jhonson

    carl_jhonson Amatore

    Messages:
    98
    Chennai
    Punto Evo 1.3 90 HP
    Any place can get flooded. Why single out metros. Because metros have more cars? But then insurance companies get more premium as well from metros. Can not understand the logic behind this.
  3. ghodlur

    ghodlur Esperto

    Messages:
    2,317
    Thane
    Metros in any case presently also were charged higher premium due to location or zoning classification. The scale of claims settled by Insurance co towards vehicles during the recent Chennai flood incident has unnerved the Insurance cos. It was but natural for them to cover themselves by passing on the higher premium to the customers. Instead of assuming that the metros would face a similar condition, they should have analysed how much extent of damage could be caused by flood suspected cities instead of a knee jerk reaction.
  4. asimpleson

    asimpleson Esperto

    Messages:
    2,998
    Heptanesia
    Linea 1.3
    We should also factor in the rising costs of settlements with more number of vehicles and larger number of incidents and claims. That coupled with the abuse many owners or service centers do. At times makes insurance companies to pay unreasonable claim settlements. In US owner's age and car colour and model also attract higher premiums. The pros being a quick settlement by the companies.

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