Business Daily from THE HINDU group of publications
Sunday, Jan 27, 2008
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Business Daily from THE HINDU group of publications Sunday, Jan 27, 2008 ePaper | Mobile/PDA Version |
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Cars Money & Banking - General Insurance
With a 623-cc engine, premium may be lower than that for Maruti 800. Likely to be based on assumptions, expectations initially. Phalguna Jandhyala New Delhi, Jan. 26 With the totally new entrant Nano slated to be on the roads later this year, general insurance companies are adopting a ‘wait and watch’ approach for fixing the insurance premium for Tata’s Rs 1-lakh car. The motor insurance premium for the private car segment is based on three slabs of pricing – for those below 1,000 cc, another for up to 1,500 cc, and the final slab for all those above 1,500 cc. According to industry sources, till now the lowest in the segment was the Maruti 800, but since the Nano has a 623 cc engine, the premium could be much lower than what is charged for the lowest variant of the Maruti 800, which is around Rs 10,000 depending on the location and discounts. “The Nano is a totally new concept and initially the premium charged will be based on guess, assumptions and expectations. But as time goes by there would be some corrections based on experience,” Mr S. Narayanan, Managing Director and Chief Executive Officer, Iffco-Tokio General Insurance Co Ltd, told Business Line. Since Nano is still not available for inspection, insurance companies would like to wait till a clear picture emerges on the cost of components, cost of repairs and spares, an insurance company official said. “Another important factor which would be looked into will be the extent to which the car will be used. For example, when Maruti was first launched in the mid 1980s, the initial perception was that it was a city car, but what actually happened was that it was also extensively utilised for long distance travel. User profile“So the user profile as well as the buyer profile will be the two other factors that would be considered before the premium rates are decided,” Mr Narayanan said. On the other hand, according to Mr Eswaranatarajan N, Head (Motor Insurance), ICICI Lombard, the insurance premium could be around Rs 3,500 depending on the model and final price. More Stories on : Cars | General Insurance | Tata Motors Ltd
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