Page 341 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

and extent could decide whether the payments are
reasonable or exorbitant.

4. The data could also provide trends on claims
settlements for various types of loss or damage
for corrective action to be taken, where necessary.

Motor insurance premiums depend on a lot of factors.
The price of the vehicle, type, age, engine power,
accessories' value and city of registration are some of
these.

Usually, while the premiums are high for a new vehicle,
they are lower for older vehicles because the IDV
falls as well. Since detariffing, motor insurance
premiums had gone down by 30 to 35 per cent.

But, underwriting losses have more than doubled in
the past four-five years. Since the removal of caps on
rates ('detariffing') in 2007, companies were involved
in a battle for market share.

Motor insurance premiums, therefore, fell sharply.
However, with the number of accidents increasing
steadily, insurers are finding it unviable to keep
premiums low.

Sashi Publications - www.sashipublications.com 341

Copyright@ The Insurance Times. 09883398055 / 09883380339