If you are driving a diesel car, you may now have to shell out more as insurance premium. ICICI Lombard, for one, has already drawn up plans to put an average of 15 per cent overloading while calculating insurance premium on diesel vehicles.
And that’s not all. The company is also mulling to factor in some new parameters like age of the driver, variant of the vehicle, while calculating the insurance premium.
“In motor insurance, the premium calculation revolves around two to three parameters, like the model of the vehicle and location where it is heading (that is where the vehicle is in use). The age of the vehicle has also been included recently but if one goes by the experience and practice in the western countries, the drivers’ characteristics are also taken into consideration, which is not done here. Fuel type, for instance is an important factor, which determines the risk. Diesel cars are mostly used for commercial purposes and exposure to risk is higher for such vehicles. Therefore this 15 per cent overloading, depending on the fuel type is not unjustified,” said Amitabh Jain, vice-president & head-motor insurance, ICICI Lombard.
Going forward, the general insurance company will also create a comprehensive database on the demographic behavious and fuel type of the vehicle while revising the premium amounts in case of motor insurance.
“We know such detailing will take some time. But we are consciously and carefully working on that. These data will have to be captured and analysed,” said Jain.
Responding to queries on the committee formed for the amendment of Motor Vehicle Act, Sanjay Datta, head-customer service (health and motor), ICICI Lombard, said they were optimistic over getting the motor vehicle third-party liability limit capped at Rs 10,00,000 as recommended by the Sundar Committe. At present the motor vehicle liability is unlimited while the aircraft liability is capped at Rs 5,00,000 and railway liability at Rs 2,00,000. Read More
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