Fed up of those nasty problems that your car gives you everyday & that too all of a sudden? Then here comes a good news for you! First party motor insurance is all set to undergo major changes in India. The insurers are now planning to come up with policies that will offer another vehicle for the period for which the insuree’s vehicle is unavailable, for instance, getting repaired. Even, if the car is not replaced, the insuree will receive allowance to recoup the rental of hiring a car during that period. Insurers in mature markets like US and UK are already offering such policies. Now with IRDA allowing it in India, almost all the major insurers have started working on it. IRDA has also allowed a waiver of depreciation.
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Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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