A new alternative to get cheaper insurance premium has been identified recently, get married! Many top private sector motor vehicle insurance companies, such as ICICI Lombard and Bajaj Allianz are offering relaxed premium rates to already married car owners, and not to those who are single. Apparently, the insurance firms are holding the opinion that married people drive their vehicles more safely as compared to single dwellers, who use their vehicles primarily for own requirements. The benefit differential offered to married car owners is believed to be as high as 5 to 10 per cent.
As per reports, the insurance companies have set out new parameters for the calculation of motor vehicle insurance premium amounts. At present, all the major firms are collecting user information, so as to profile customers and implement renewal of policies.
Commenting on the company's new philosophy, Vijay Kumar, Head, Motor Vehicle Insurance, Bajaj Allianz General Insurance, was quoted as saying, “Right now, the industry is in the process of collecting customer data. Once data is established and we assess risks better, the industry would be able to give higher discounts…. For a motor policy, we may even consider mentioning the names of all the drivers in a family.”
Interestingly, it is not just the 'Relationship status' of the owner that is bugging motor vehicle insurance firms. The fuel type of the car, whether petrol or diesel also has an impact on the net insurance premium sum. The insurance providers feel that it is less risky to drive a petrol powered car as against using a diesel driven vehicle.
Commenting on the issue, Sanjay Datta, Head, insurance claims and underwriting at ICICI Lombard, said, “A diesel-run car is assumed to be used more often than a petrol-run one. So, the premium charged for it would be 10-12 per cent higher. Therefore, voluntary declarations are a must, provided these are in line with your insurer’s requirements.”
