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Vehicle Insurance ~ The Other Side Of The Story

The common perception among vehicle owners is that vehicle insurance is a statutory requirement and, hence, not of any benefit. But, is this really the case? At least the statistics from vehicle insurance speak a different language.

For the current year, out of Rs. 5,631 crore OD premium (own damage premium) paid by vehicle owners in private car category, own damage claims to the tune of Rs. 3,136 crore were paid, almost 58.5% of total premium collected. Quite an astonishing figure, isn’t it? What’s interesting though is the category for “Goods carrying public carriers (3 wheelers)” – this segment has a claims ratio of 175.6% for third party premiums. Essentially, this means that more money is paid by insurance companies to victims of reckless driving in this category, in a way, insurance companies are sponsoring reckless driving in this category. What’s notable is that the claims ratio for third party insurance (overall) is 112.8%. This can be due to either of the following reasons – either people are generally reckless drivers or the premium amount for third party insurance (denominator) is pretty low and requires a re-evaluation.

Web aggregators, such as www.BuySmartPolicy.com provide easy interface to compare and buy vehicle insurance.

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Authored by: BuySmartPolicy
Published date: March 28 2018.

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