{"id":931,"date":"2020-11-09T14:39:50","date_gmt":"2020-11-09T09:09:50","guid":{"rendered":"https:\/\/opiniown.com\/?p=931"},"modified":"2020-11-09T16:30:27","modified_gmt":"2020-11-09T11:00:27","slug":"motor-vehicle-insurance","status":"publish","type":"post","link":"https:\/\/opiniown.com\/motor-vehicle-insurance\/","title":{"rendered":"Do We Need Motor Vehicle Insurance? Industry Experts Discuss"},"content":{"rendered":"
Insurance & risk management veteran Faruk Vhora, and Mallika Vhora, expert in the field of health & insurance discuss road safety in India and why motor vehicle insurance may be more necessary than you think.<\/em><\/p>\n <\/p>\n India tops the list in terms of the number of accidents on the road all over the world considering the ratio of the number of people and the incidences taking place. In 2015, there were about five lakh road accidents in India, which killed about 1.5 lakh people and injured about five lakh people. However, this is probably an underestimate, as not all injuries are reported to the police. The actual numbers of injuries requiring hospital visits may be 2,000,000-3,000,000 persons.<\/p>\n With the swift increase in the number of vehicles on the road, the traffic conditions are under a lot of pressure. Since 2000, while road length has increased by 39%, number of motor vehicles have increased by 158%.<\/p>\n Drivers are held responsible for 78% of accidents; 3% accidents are caused by neglect of civic bodies.<\/p>\n Therefore, road safety is one of the most serious public health issues in our country. It has an bearing on everyone, whether one drives a vehicle, walks or rides a cycle.<\/p>\n Road safety specimens:<\/strong><\/p>\n Issue observed:<\/strong> Large commercial tanker entering toll gate demarcated for LCV\/LMV.<\/p>\n Impact:<\/strong> Traffic queues owing to large vehicle blocking lane<\/p>\n Mitigation Strategy:<\/strong><\/p>\n Toll authorities to ensure passage of vehicles in demarcated lanes at all given times.<\/p>\n Onus on drivers of LCV\/LMV\/HMVs to follow lane discipline and ensure smooth flow of traffic at Toll gates<\/p>\n <\/p>\n Issue Observed: <\/strong>Frequent closure of Toll lanes due to infra\/technology\/human issues<\/p>\n Impact: <\/strong>Traffic mismanagement, delays in toll collection and wastage of fuel consumed during standby<\/p>\n Mitigation Strategy:<\/strong><\/p>\n Toll authorities to ensure upkeep and maintenance of toll infrastructure always<\/p>\n Timely checks to be undertaken to ensure lane movement is free of impediments<\/p>\n Planned repair and maintenance activities to be undertaken in a phase wise manner<\/p>\n Issue Observed:<\/strong> Bike riders avoiding usage of Helmets in city as well as on highway conditions<\/p>\n Impact:<\/strong> Serious risk of grave injury and even death in case of accidents involving bikers<\/p>\n Mitigation Strategy:<\/strong><\/p>\n Practicing safe riding by wearing helmets for both rider and pillion rider as well<\/p>\n Enforcing fines for offenders and stricter measures for repeat offenders by means of cancellation of license or revocation for a temporary period<\/p>\n Issue observed: <\/strong>Commercial vehicles carrying sharp objects\/goods in an unsecured and uncovered manner<\/p>\n Impact:<\/strong> Serious risk of accidents\/injuries if any loose object falls off or vehicles crash into such a commercial vehicle<\/p>\n Mitigation Strategy:<\/strong><\/p>\n Commercial enterprises to ensure goods are carried by adopting safety measures and quality packaging.<\/p>\n Cars\/Bikes trailing such dangerous commercial vehicles should maintain adequate distance to ensure no collision. In extreme cases, other vehicles should alert traffic authorities about such irregularities<\/p>\n Issue observed:<\/strong> Commercial vehicles carrying hazardous<\/p>\n Inflammable goods on highways along with other commercial<\/p>\n and passenger carrying vehicles.<\/p>\n Impact:<\/strong> Serious risk of accidents\/injuries can happen in case of<\/p>\n collision with another vehicle, explosion, spillage, leakage of<\/p>\n hazardous chemical, oil, gas etc.<\/p>\n Standards for commercial vehicles carrying hazardous cargoes to be set with strict implications and permit to be checked at all main check posts.<\/p>\n The timing for transportation of such cargoes should not be allowed during peak passenger carrying hours and in passenger carrying lanes.<\/p>\n The UN Decade of Action for Road Safety recommends member countries and international agencies to implement many activities at international, national and sub-national levels as per the five pillars of road safety which refer to road safety management, safer road infrastructure, safer vehicles, safer road users and post-crash care systems. India must adopt the same and improve its road safety stature to respectable position by the next 5 years.<\/p>\n <\/p>\n One of the ways for accident victims to be compensated for road accidents is through motor vehicle insurance. Motor vehicle insurance has two parts: (i) own damage (OD) and (ii) third party liability (TP).\u00a0 While OD covers for the vehicle and its physical damage, TP provides for injury or death of others involved in the accident.\u00a0 Under the Motor Vehicle Act, 1988, third party insurance is compulsory for all motor vehicles.<\/p>\n Between 2009 and 2014, while premium earned through OD segment has increased by 93%, premium earned through TP has increased by 248%. The share of TP within total motor accident premium earned has increased from 38% in 2009 to 52% in 2014.<\/p>\n Incurred claims ratio for motor insurance is high; claims ratio for private companies has been increasing<\/p>\n Data Sources: Ministry of Road Transport and Highways; Ministry of Statistics and Program\u00a0Implementation; Insurance Regulatory and Development Authority of India; PRS.<\/p>\n Map visualizations have been made using SocialCops.<\/p>\n The incurred claims on motor insurance business ranged between 84% and 103% of the net premium earned between 2006-07 and 2014-15. This ratio for private motor insurance companies has increased from 64% in 2006-07 to 82% in 2014-15.<\/p>\n Currently third party insurance has unlimited liability which means that the insurer has to cover the entire amount of compensation as decided by the courts. Compensation amounts are calculated by courts \u00a0on the basis of several factors such as age, and earning capability of the victim, and may go up to several crore rupees.\u00a0 With unlimited liability, and compensation amounts increasing, claims being paid by insurance companies have been increasing.\u00a0 Consequently, insurance premiums are being increased regularly.<\/p>\n This article is sponsored by:<\/p>\n <\/p>\n What we facilitate: <\/em> Insurance & risk management veteran Faruk Vhora, and Mallika Vhora, expert in the field of health & insurance discuss road safety in India and why motor vehicle insurance may be more necessary than … Read more<\/a><\/p>\n","protected":false},"author":9,"featured_media":937,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[118],"tags":[705,704,703,6,702,706,701],"_links":{"self":[{"href":"https:\/\/opiniown.com\/wp-json\/wp\/v2\/posts\/931"}],"collection":[{"href":"https:\/\/opiniown.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/opiniown.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/opiniown.com\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/opiniown.com\/wp-json\/wp\/v2\/comments?post=931"}],"version-history":[{"count":11,"href":"https:\/\/opiniown.com\/wp-json\/wp\/v2\/posts\/931\/revisions"}],"predecessor-version":[{"id":953,"href":"https:\/\/opiniown.com\/wp-json\/wp\/v2\/posts\/931\/revisions\/953"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/opiniown.com\/wp-json\/wp\/v2\/media\/937"}],"wp:attachment":[{"href":"https:\/\/opiniown.com\/wp-json\/wp\/v2\/media?parent=931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/opiniown.com\/wp-json\/wp\/v2\/categories?post=931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/opiniown.com\/wp-json\/wp\/v2\/tags?post=931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Road Safety in India<\/h2>\n
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Some of the major causes of road accidents are as follows \u2013 Risk Profile<\/strong><\/h3>\n<\/li>\n<\/ol>\n
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Mitigation Strategy:<\/h4>\n
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Role of Government and Public Sector <\/strong><\/h3>\n<\/li>\n<\/ol>\n
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Role of General Community <\/strong><\/h3>\n<\/li>\n<\/ol>\n
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Hurdles in Road Safety <\/strong><\/h3>\n<\/li>\n<\/ol>\n
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Profile of Road safety issues\/accidents<\/strong><\/h3>\n<\/li>\n<\/ol>\n
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Way forward for ensuring Safe Roads and Travel in India<\/h2>\n
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Why Insurance?<\/h2>\n
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\nFaruk Vhora, a veteran in the field of insurance has led at multiple locations across Gujarat and Maharashtra for Iffco Tokio General Insurance Company Limited. With more than 23 years of rich experience in varied sectors, he has spent exhaustive 19 years in the Banking Securities Finance and Insurance Sector.
\nHis experience and expertise includes Underwriting, Risk Management, Operations, Claim Management, Marketing and Business Development. He has passion to drive across the country and travel the world. With a vision to become the most preferred financial services solution provider to consumers and commercial set ups, Faruk has initiated his entrepreneurial startup Insuratis \u2013 Your Insurance Partner.<\/em><\/div>\n
\nMallika Vhora, perusing her Ph.D, is an expert in the field of health, working in the sector for the last 16 years. She has thorough knowledge of health and personal line of insurance. With her domain expertise, she has co-founded Insuratis<\/em> with Faruk. As the Managing Director, she will be overall in-charge of the health, personal accident, term insurance to start with and expand her horizon in the other lines too at Insuratis \u2013 Your Insurance Partner<\/em>.<\/div>\nInsuratis \u2013 Your Insurance Partner<\/h4>\n
\n\u2022 General Insurance covers Retail and Commercial Lines<\/em>
\n\u2022 Health Insurance cover Personal and Group wellbeing <\/em>
\n\u2022 Life Insurance covers Term Insurance <\/em>
\n\u2022 SME Loan \/ Retail Loan : New & Transfer of term loan with advantages<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"