Insurance for 2-wheelers now 10% of price, doubles for cars in 1 month
TIMES NEWS NETWORK
Mumbai:11.10.2018
Two-wheeler buyers have to pay nearly 10% of the vehicle’s price upfront towards insurance premium, while car-buyers are seeing the cost of motor cover double from last month. The premiums have jumped up significantly thanks to two court orders: The first makes purchase of a long-term, thirdparty insurance cover mandatory, while the second forces vehicle owners to buy a ₹15 lakh personal accident cover, which is exorbitantly priced by insurers.
Anyone buying a twowheeler must mandatorily purchase a five-year, thirdparty cover, and an annual personal accident cover. This is in addition to a comprehensive cover that is sold at the time of purchase of the vehicle. As a result, for a 150cc bike costing ₹75,000, the insurance premium itself would work out to ₹7,600.
In the case of cars, the owner must pay premium for three years of third-party insurance and an additional ₹750 towards a personal accident cover, in addition to the comprehensive cover sold by the dealer. For the buyer of a car with engine capacity of over 1000cc, the payout towards insurance has doubled to nearly ₹20,000 from ₹10,000 earlier.
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Telling insurers to stop discriminating against people with HIV/AIDS, the Insurance Regulatory and Development Authority of India has said that HIV-positive individuals cannot be denied insurance cover unless supported by actuarial studies. P 15
‘Co-driver is neither defined in policy nor in MV Act’
Last week, IRDAI clarified that the personal accident cover can be paid in instalments. However, insurance industry sources say the rates are very high. Under the PM Suraksha Bima Yojana, many non-life companies provide a personal accident cover of ₹2 lakh for a premium of ₹12. As against this, the prescribed ₹750 premium for a ₹15-lakh personal accident cover works out to ₹50 per lakh.
“The personal accident cover under the Pradhan Mantri Suraksha Bima Yojana is valid round the clock and provides protection from any form of accidental death. Under the motor personal accident cover, the protection is available only to the owner while he is driving the vehicle,” said an insurance official. “The personal accident cover under the PM Suraksha Bima Yojana is valid round the clock and provides protection from any form of accidental death. Under the motor personal accident cover, the protection is available only to the owner while he is driving the vehicle,” said an insurance official. According to Segar Sampath Kumar, former GM at New India Assurance, there is a need to change the terms of the cover. The policy as it stands says that compensation will be paid for bodily injury or death sustained by the ownerdriver of the vehicle in direct connection with the vehicle insured or while mounting into/dismounting from or travelling in the insured vehicle as a co-driver. “The phrase ‘in direct connection with the vehicle’ is not properly worded. Whether the owner would get covered if he rides pillion on his two-wheeler or as a passenger in his car is not clear,” he said. Also, the term codriver is neither defined in the policy nor in the Motor Vehicles Act. “The coverage should be widened to cover any licensed driver if he causes the accident, that is, if he is the tortfeasor (who causes damage).
TIMES NEWS NETWORK
Mumbai:11.10.2018
Two-wheeler buyers have to pay nearly 10% of the vehicle’s price upfront towards insurance premium, while car-buyers are seeing the cost of motor cover double from last month. The premiums have jumped up significantly thanks to two court orders: The first makes purchase of a long-term, thirdparty insurance cover mandatory, while the second forces vehicle owners to buy a ₹15 lakh personal accident cover, which is exorbitantly priced by insurers.
Anyone buying a twowheeler must mandatorily purchase a five-year, thirdparty cover, and an annual personal accident cover. This is in addition to a comprehensive cover that is sold at the time of purchase of the vehicle. As a result, for a 150cc bike costing ₹75,000, the insurance premium itself would work out to ₹7,600.
In the case of cars, the owner must pay premium for three years of third-party insurance and an additional ₹750 towards a personal accident cover, in addition to the comprehensive cover sold by the dealer. For the buyer of a car with engine capacity of over 1000cc, the payout towards insurance has doubled to nearly ₹20,000 from ₹10,000 earlier.
Can’t deny cover to HIV+ patients: IRDA
Telling insurers to stop discriminating against people with HIV/AIDS, the Insurance Regulatory and Development Authority of India has said that HIV-positive individuals cannot be denied insurance cover unless supported by actuarial studies. P 15
‘Co-driver is neither defined in policy nor in MV Act’
Last week, IRDAI clarified that the personal accident cover can be paid in instalments. However, insurance industry sources say the rates are very high. Under the PM Suraksha Bima Yojana, many non-life companies provide a personal accident cover of ₹2 lakh for a premium of ₹12. As against this, the prescribed ₹750 premium for a ₹15-lakh personal accident cover works out to ₹50 per lakh.
“The personal accident cover under the Pradhan Mantri Suraksha Bima Yojana is valid round the clock and provides protection from any form of accidental death. Under the motor personal accident cover, the protection is available only to the owner while he is driving the vehicle,” said an insurance official. “The personal accident cover under the PM Suraksha Bima Yojana is valid round the clock and provides protection from any form of accidental death. Under the motor personal accident cover, the protection is available only to the owner while he is driving the vehicle,” said an insurance official. According to Segar Sampath Kumar, former GM at New India Assurance, there is a need to change the terms of the cover. The policy as it stands says that compensation will be paid for bodily injury or death sustained by the ownerdriver of the vehicle in direct connection with the vehicle insured or while mounting into/dismounting from or travelling in the insured vehicle as a co-driver. “The phrase ‘in direct connection with the vehicle’ is not properly worded. Whether the owner would get covered if he rides pillion on his two-wheeler or as a passenger in his car is not clear,” he said. Also, the term codriver is neither defined in the policy nor in the Motor Vehicles Act. “The coverage should be widened to cover any licensed driver if he causes the accident, that is, if he is the tortfeasor (who causes damage).
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