Online auto insurance

by CARAZOO INDIA

According to K N Bhandari, chief executive, General Insurance Council �� an association of non-life insurance companies, the company is in favor of healthy price competition and are open to providing quotes to such intermediaries. There are dealers for new cars by providing such service by offering quotes from a host of companies for new car buyers. As the dealers do not see the insurance as the core area, the aggregator facility has been available only for new car owners. Another reason why aggregators have not come forward is that, according to the IRDA regulations any entity offering products of multiple companies require broking license with fulfilling all conditions that includes setting up a new entity with a minimum capital of Rs 50 lakh.

The motor insurance rates have been cut down from 3% to 2% of the insured value of the car. The lowest interest rates are of the car value outside India is 5%. To maintain discipline in the market, the IRDA has denied the cancellation of the old tariff governed policies and replace them with new policies. This would mean that for car-owners new products would start becoming available gradually over a 12-month period depending on their date of renewal. But looking at the insurer��s version, they feel that these rates are unsustainable. With the latest cars are being launched in India, even small repairs are expected to result in large claims forcing insurers to start looking at their bottom line.

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