Did you know that you get personalised discounts in motor insurance? Non-life insurance companies have increased the number of parameters to decide the discounts they should offer.
In case the factors are favourable, insurers increase the discounts in your own-damage car covers. A motor own damage cover protects the insured vehicle against loss or damage due to accident, theft or specified perils.
“We offer discounts on certain considerations such as the age of the driver, place of residence, seating capacity, whether the car usage will be commercial or private and the profession of the owner,” said Vijay Kumar, Head Motor insurance at Bajaj Allianz General.
HDFC Ergo General Insurance has begun offering an additional 10 per cent discount if the person is above 50 years of age and one can get an additional 10 per cent if one is in a white-collar job. HDFC Ergo also considers the claim frequency and the average claim amount for the model of the car.
Explains Ritesh Kumar, MD and CEO of HDFC ErgoGeneral Insurance, “We have observed lower loss ratios among older people as they drive more cautiously. Also people in white collar professions drive less rashly.”
The premium rates for motor own damage covers have already been reduced by 20 to 40 per cent of the earlier tariff rates with the lifting of full price controls over a year ago.
“We are seeing new companies which are segmenting better. Based on the segmentation they are able to give higher discounts to the segments perceived as lower risks. The discounts which were in the range of 20 to 25 per cent last year, have tremendously increased to over 40 per cent in March this year,” said Yashish Dahiya, CEO, PolicyBazaar.com.
Says Eswaranatarajan.N, Head Motor Insurance at ICICI Lombard, “We plan to introduce speedometer rating to know the usage. Over a period of time, the cross subsidization between the good and bad drivers will stop due to some of the rating parameters.”