Monday, August 22, 2011

It is bad that only 33% vehicles were insured in India during 2010

We knew the facts that:

1. No commission is being paid to insurance intermediaries on 3rd party premium as a result they do not have any interest or motivation to sell this policy.
2. Private companies generally do not insure vehicles for 3rd party risk.
3. Customers find it is wastage of time in going to branch office of PSU’s for getting policy issued for 3rd policy or even for comprehensive policy for vehicles older than 7 years.
4. If there is break in insurance then rules are so difficult (deposit the money on the same day before 3.45 pm.Assuming th survey was done at 12.30 then you should rush to insurance company branch office to stand in the queue so that premium is deposited by 3.45 pm.When some one asked that earlier the rule was insurance to be done within 24 hours then a person laughed and said “we changed the rules to harass the customers so that they do not come to our offices to insure the vehicles.”

As a result the number of uninsured vehicles has been increasing and the statistics are;

Numbers of policies issued were 3, 74, 59,868
Additional number of policies which could have been issued 750 lakhs

Total premium earned by the industry Rs.12, 041crore
Total premium which could have been earned by the industry Rs.18000 crores (assuming some of these vehicles are old and 3 rd party cover only).

We can say about Delhi as a city or state that Police is happy if the vehicle driver does not have the policy because it gives them an opportunity to make some money on the side.

We feel all insurance companies should issue 3rd party cover. No excuse to Private Companies. No pick and chose to be allowed to them.
No vehicle should be refused insurance by any insurance company. If they refuse then they should give the reason in writing.
Let us go back to issue of policies (break in insurance) within 24 hours of survey being done.

Let us respect Motor Vehicles Act 100%

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