Friday, March 23, 2012
By Shilpa Chopra
Car owners, buyers get ready to shelve extra bucks for insurance premium from April 1
The car owner or a prospective car buyer is certainly in a state of hypertension as the car prices have hiked already recently and now the motor insurance rates are going up from April 1. As per sources, there will be an increase from 15 percent to 20 percent in the insurance premium. Possible reasons behind the hike are the dismantling of the third party pool besides other factors. Thus if you are planning to buy an all new Maruti Swift Dzire or upcoming Maruti Ertiga on or after April 1, be prepared to give some extra bucks due to the insurance premium hike.
Thus, suppose if you were paying a premium of Rs 5000 for your old Hyundai Santro or any other car annually you will have to shell out an extra Rs. 750 from April 1 onwards. The new rates will be applicable on all renewals as well fresh auto insurance policies.
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The Insurance regulatory Development Authority (IRDA) had already indicated in the recent past that the motor insurance is going to have a reform coming April 1, 2012 and now it has come in the form of dismantling of third party pool and the consequent rise in insurance rate that has triggered the hike in premium. Some experts believe that a rise in the claim in other segment have led to this rise. Consequently, there will also be a rise in the premium for car and occupants insurance premium.
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Industry experts believe that the imminent rise in the insurance premium on cars in India will be affecting the car sales in India. Where the ex showroom prices have already increased due to excise hike in the Union Budget leading to loss of sales and now the insurance premium hike will do the needful of further dampening sales.