Are you a doctor? Do you have a covered parking lot? Do you use your car sparingly? If your answers to these questions are yes, you may get a discount on the insurance premium on your car at the time of renewal. Faced with huge losses in their motor portfolio, general insurers are exploring various options to reduce the losses. Differential pricing is one of the options considered, which means premiums will go up if the insurer believes the incidence of claim is going to be higher or vice versa
"Traditionally, car premiums were decided upon the basic factors i.e.
engine capacity, age of the car and geographical zones. Over the last
four years, insurers in India have started using several other
'asset-based' parameters - such as the type of fuel used in the car,
effective anti-theft devices etc. Further, few insurers now are trying
with 'demographic' parameters as well - these include the occupation of
the insured, the age of the driver/insured etc.," says Sanjay Datta,
chief, underwriting & claims, ICICI Lombard.
In fact, industry-watchers say your marital status and gender, too, could affect the premium figures. "In terms of demographic parameters, we have started taking into account the insured's age, gender, occupation and driving experience. Even marital status plays a role in influencing the premiums. For instance, married individuals in the age group of 32-60 are entitled to discounts as they are perceived to be more responsible drivers and we are thinking of using this as a rating parameter. They can also be counted upon to take good care of their vehicles. Discounts on the basis of such personal information can go up to 20%. Likewise, the loading on premium, too, can be as high as 20%," says Madhukar Sinha, national head, personal lines, Tata-AIG General.
However, the possibility of discount in one category being cancelled out due to loading in another cannot be ruled out. For instance, higher premium due to the fuel type may nullify the discount earned on account of occupation or age.
PROVIDE MORE INFORMATION IN THE PROPOSAL FORM
Simply put, the information you provide can swing the premium for you. For instance, Berkshire Insurance, which sells Bajaj Allianz's motor policies, offers a 5% discount to policyholders if they share personal information.
"We have started offering discounts in premiums to certain professions (like doctors, software professionals, those with desk jobs) and also on the basis of income brackets and gender. The discounts will be in the range of 5-7% on policies bought online," says Vijay Kumar, head, motor insurance at Bajaj Allianz.
You are also likely to score high on insurers' preference meter if you sparingly use your vehicle, as that would translate into fewer chances of making claims. This apart, you could be charged lower premiums if you park the car in a covered space. Again, the reason is lower possibility of claims. On the other hand, a car parked in the open is always at the risk of getting damaged.
BUY POLICIES ONLINE
If you are buying your policies through an intermediary, it is unlikely that s/he will encourage you to provide such details in the proposal form. Besides, going online has direct benefits, too. "One can save money on car insurance premiums by buying the insurance policy online. Some companies offer better rates for customers coming directly onto the company's website," says Datta.
In fact, industry-watchers say your marital status and gender, too, could affect the premium figures. "In terms of demographic parameters, we have started taking into account the insured's age, gender, occupation and driving experience. Even marital status plays a role in influencing the premiums. For instance, married individuals in the age group of 32-60 are entitled to discounts as they are perceived to be more responsible drivers and we are thinking of using this as a rating parameter. They can also be counted upon to take good care of their vehicles. Discounts on the basis of such personal information can go up to 20%. Likewise, the loading on premium, too, can be as high as 20%," says Madhukar Sinha, national head, personal lines, Tata-AIG General.
However, the possibility of discount in one category being cancelled out due to loading in another cannot be ruled out. For instance, higher premium due to the fuel type may nullify the discount earned on account of occupation or age.
PROVIDE MORE INFORMATION IN THE PROPOSAL FORM
Simply put, the information you provide can swing the premium for you. For instance, Berkshire Insurance, which sells Bajaj Allianz's motor policies, offers a 5% discount to policyholders if they share personal information.
"We have started offering discounts in premiums to certain professions (like doctors, software professionals, those with desk jobs) and also on the basis of income brackets and gender. The discounts will be in the range of 5-7% on policies bought online," says Vijay Kumar, head, motor insurance at Bajaj Allianz.
You are also likely to score high on insurers' preference meter if you sparingly use your vehicle, as that would translate into fewer chances of making claims. This apart, you could be charged lower premiums if you park the car in a covered space. Again, the reason is lower possibility of claims. On the other hand, a car parked in the open is always at the risk of getting damaged.
BUY POLICIES ONLINE
If you are buying your policies through an intermediary, it is unlikely that s/he will encourage you to provide such details in the proposal form. Besides, going online has direct benefits, too. "One can save money on car insurance premiums by buying the insurance policy online. Some companies offer better rates for customers coming directly onto the company's website," says Datta.
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