Page 352 - Motor Insurance Ebook IC 72

The Insurance Times

large implication on the probability of theft. Four states-
Bihar (16%), Delhi (13%), Jharkhand (12%) and
Chhattisgarh (8%)-account for almost 60% of all car
thefts in the country.

These findings have implications for insurance
companies. After the make and model, location makes
a big difference in the pricing of the policy since the
probability of theft is much higher in some states in the
north.

The cost of repairing damaged windshields and bumper
account for almost 60% of the amount that insurance
companies pay in motor insurance claims. When it comes
to car thefts, four states account for almost half of the
total losses in motor insurance.

The government has asked the insurance regulator
to implement the proposed increase in motor
insurance premium as the losses could adversely
affect the companies. "If the situation was allowed
to continue, there will be a severe dent on the
solvency of insurance companies which could lead
to both solvency and liquidity issues for these
companies.

In January, the Insurance Regulatory and

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