Car insurance policies to get smarter with more frills
Aided by new regulatory flexibility, automobile insurance policies are getting smarter, offering you cover for things that were not easily insurable earlier, reports Falaknaaz Syed.autos Updated: Feb 07, 2009 10:13 IST
Aided by new regulatory flexibility, automobile insurance policies are getting smarter, offering you cover for things that were not easily insurable earlier. Soon, vehicle owners can –at some extra premium – add cover for the loss of baggage in cars, or make insurers pay for a month’s loan installment in case the car is not being used.
Policies can also get 100 per cent of the claim amount (called nil depreciation cover), or even have access to a substitute car when a vehicle is being repaired (called replacement car cover).
Or policy-holders can get a daily allowance when a car is under repair.
Non-life insurers have filed for such additional covers with the insurance regulator-Insurance Regulatory & Development Authority of India (IRDA). They are expected to be launched soon.
Currently, car owners have to bear 50 per cent of the cost of replacing rubber costs even if a damaged car in question is less than a year old. A nil-depreciation policy means insurers will not pay less for replacing rubber parts.
Oriental insurance has filed for 4 add-on covers in the motor cover. Insurers are also launching value-added services to differentiate themselves from other insurers and increase their motor portfolio. I
ICICI Lombard general has appointed its own managers in dealership garages who visit the customer personally incase of a claim. For commercial vehicles, the insurer has introduced a faster settlement process.
Says Eswaranatarajan, head motor insurance at ICICI Lombard, “Motor premium was 40 per cent (Rs 1,400 crore) of the total business in 2007-08 and we are aiming to increase it to Rs 1,700 crore.”
A senior official of Oriental insurance said, “We are entering into tie-ups with manufacturers and dealers as we never had such tie-ups.