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Now, pay more for vehicle insurance
NEW DELHI : The next time you renew your motor insurance, your are likely to end up paying a higher premium.
NEW DELHI : The next time you renew your motor insurance, your are likely to end up paying a higher premium.
The Cabinet recently approved the Motor Vehicle (Amendment) Bill, 2016, aimed at providing heavier penalties for violation of norms. It also includes an increase in compensation for hit-and-run cases to ₹2 lakh from the current ₹25,000.
This is likely to push up renewal cost for car and two-wheeler insurance, currently around 50% and 30%, annually. It could also push up your premium as the penalty for driving without insurance will be hefty.
“The increased compensation for victims of road accidents will result in higher claim payouts, leading to more liability for insurers,” said Vijay Kumar, president, motor insurance, Bajaj Allianz General Insurance.
According to an analysis by KPMG, insurance frauds are “more rampant than banks.” And a rise in premium is likely to increase the number of frauds.
“Such penalties will encourage more people to take up insurance,” said Rakesh Jain, CEO, Reliance General Insurance.
