Insurance companies are waiting for Nano to actually hit the roads before they quote any price for its insurance cover. These insurers are also waiting for the price list of spare parts for Nano to be released by the company to assess its premium. Most of the companies believe that auto insurance for Nano may be the cheapest in percentage terms but the rates will be higher than for other cars.
“The insurance cost would be closer to the premium charged on the Maruti 800 with some discount for the low value of the car,” says Vijay Kumar, head motor insurance at Bajaj Allianz General Insurance. “The insurance cover for third-party premium is in any case fixed by the regulator and will be around Rs 800 - the same as for all small cars,” he added.
“I do not think it will be possible to price insurance cover for the Nano using standard pricing models. We will have to wait for the price list of spare parts before we can decide on the premium,” said Deepak Sood, MD of Future General Insurance. He also expects that since the car is going to be sold heavily the insurance companies will have to take the commission expectations also into account from intermediaries.
In the end, every insurance company is waiting for the final model to be launched and assess its public reaction. For the initial days, there seems to be a mass hysteria in the country about the upcoming launch and people are anxiously waiting for the bookings to open.