Mo­tor cover re­newals up 6x on fines

The Times of India (New Delhi edition) - - Times Global - [email protected] times­group.com

Chen­nai: As traf­fic vi­o­la­tors start pay­ing hefty penal­ties un­der the new Mo­tor Ve­hi­cles Act 2019, re­newal of ve­hi­cle in­sur­ance poli­cies has a seen an in­crease of more than 50% in the last few days. In some cases, growth has surged as much as six times.

“We are ex­pe­ri­enc­ing an av­er­age in­crease of 3-4 times in in­sur­ance re­newal en­quiries for old ve­hi­cles. Consumers are def­i­nitely taking cog­nizance of the mo­tor ve­hi­cles act amend­ments and want­ing to com­ply with the same. The en­cour­ag­ing part is to see traf­fic from both on­line and off­line dis­tri­bu­tion platforms,” said San­jay Datta, head (un­der­writ­ing and claims) at ICICI Lom­bard Gen­eral In­suran­head of mo­tor busi­ness at Ba­jaj Al­lianz Gen­eral In­sur­ance, said. The in­surer has recorded an in­crease of ap­prox­i­mately 60% in the re­newals of mo­tor cover poli­cies among bikers in the last few days.

Un­der the new pro­vi­sions, driving an unin­sured ve­hi­cle will lead to a fine of Rs 2,000 and/or im­pris­on­ment up to three months for the first of­fence, and a fine of Rs 4,000 and/or im­pris­on­ment up to three months for the sec­ond of­fence. Ear­lier, a penalty of Rs 1,000 and/or pun­ish­ment up to three months was levied on the same de­fault. Industry es­ti­mates sug­gest that mo­tor in­sur­ance pen­e­tra­tion among ve­hi­cle own­ers stands at 35-40% for twowheeler seg­ment, 65-70% for pas­sen­ger cars and 85% for com­mer­cial ve­hi­cles.

Till Aug 31 Af­ter Sept 1 10,000 60,000

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