What are the new changes being proposed in the insurance of motor vehicles? I understand even the colour of the car will determine the premium. Is this true?
As of today, the present tariffs and policy wordings have not given insurers scope for modifications in the product.
In the future, rating factors could include age of the driver, number of persons driving the vehicle, owner’s occupation, gender, usage and mileage per month, the city where the vehicle is being driven, the place where the vehicle is parked, safety features, type of fuel and maybe even the colour could have a bearing on the premium.
Gender could be a determining factor in the future since female drivers are presumed to be safer than male drivers whereas cities with a higher density of vehicles may have more damages such as scratches and dents.
Colour may not be a factor in the near future but some colours like red reflect the aggressive attitude of the driver and visibility may also be a factor since some colours are less visible during dusk or at times of poor visibility. Other drivers may find it difficult to view light coloured vehicles, which may lead to accidents.
Why are insurers averse to covering mobile phones? While most that I have approached say handsets aren’t included in the list of assets they cover, the few who are willing to insure the phones are very expensive.
Mobile phones are movable assets and hence the frequency of getting lost or misplaced is much higher. Also, it would not be easy to prove that a mobile phone is stolen.
The companies who provide insurance cover against mobile phones charge a higher premium because of the inherent risk involved in the cover.
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Ajay Bimbhet is managing director, Royal Sundaram Alliance Insurance Company Ltd.