Page 47 - Insurance Times September 2019

ers. The bundled package was allowed because the long- gine capacity of 1000cc-1,500cc is Rs 3,221. For two-
term package was becoming costly for buyers. wheelers of 75-100cc, the premium is Rs 752.

So, majority of the policyholders who bought their vehicles The same cover for a three-year policy for cars of same
after September 2018 opted for the bundled package. As engine capacity is Rs 9,534. A five-year policy for a two
a result, the own-damage part of the policy is now com- wheeler of same engine capacity is Rs 3,285. For new car
ing up for renewal and clarity was needed. owners, its mandatory to buy a long term TP policy (three
years for cars and five years for two-wheelers).
“With this new regulation, customers can now buy the OD Y Separate TP and OD policies: With the new guidelines
component separately and have the choice to buy from a in place, after September, the vehicle owner can have
different insurer as well, provided he submits the valid TP separate TP and OD covers either from the same in-
policy documents and details. To ensure its compliance, the surer or from different insurer. This flexibility was not
OD policy document needs to carry the name of the in- previously available.
surer, policy number and the start date and end date of
Y Bundled policy: For new vehicle owners, it is manda-
the TP policy,” said Neeraj Prakash, MD and CEO of Shriram tory to have a long-term TP cover of three years for
General Insurance. cars and five years for two-wheelers. A bundled cover
gives the option of buying a one-year OD cover in ad-
“Standalone own-damage plans are apt for bikes and cars dition to the TP cover from the same insurer.
with existing TP coverage. This has been introduced for
people who have already bought a 3+1 policy with a three- Y Long term policy: This offers both TP and OD insur-
ance for new cars (three years each) and two-wheel-
year third-party plan and one-year own damage plan and
need to renew only their OD coverage,” said Mahyavanshi. ers (five years each).

IRDA, through another circular dated July 11, 2019, has
A bag of choices clarified that long-term policies will be offered only to new
Let’s now take a quick look at the options before vehicle private cars and two-wheelers and not for renewal of ex-
owners. isting policies or old vehicles.
Y Only TP policy: A vehicle owner can have an only TP
policy. The regulator fixes the premium of the cover. Those looking for renewal of polices will have the usual
For instance, effective from June 16, 2019, the pre- option of a one-year TP and OD policies. (Source: The Tele-
mium for a 1-year TP cover for private cars with en- graph)

Insurance Quiz

1. What is the amount of the compensation for serious injury proposed by the Motor Vehicles Bill?
2. Which reinsurance company has launched hurricane response tool?

3. Name the insurance company with which Aditya Birla Health Insurance has signed pact.
4. Which state will have to pay Rs 934 crore as premium to LIC for Rs 5-lakh cover?

5. Name the insurer who joined hands with Akshaya Patra Foundation.

6. How many InsureTech disruptors have been selected by Lloyd’s for its ‘bold new strategy’?
7. What is the fake website for which IRDAI has issued public notice?

The answers of the quiz are from this issue itself. Just go through our journal and you will find the answers. Send your
answers by Email to insurance.kolkata@gmail.com and you can get a chance to win an attractive gift. The gift will be
offered to the person giving all the correct answers. If we receive more than one entry with all correct answers the
name of winner will be drawn from lottery. The last date of receipt of entry is 25th September, 2019.

So Hurry and Submit your entry at the earliest !!!!

The Insurance Times, September 2019 47