MotorInsurance. HDFC ERGO General Insurance Company Limited

Transcription

1 MotorInsurance HDFC ERGO General Insurance Company Limited

2 Highlights Introduction Product Overview Add-on Products USP Process.

3 Motor Insurance - Introduction Largest contributor to the premium income - 46 % of total non-life premium Largest number of policies issued & largest number of claims Mandatory by Act of government (MV Act, 1988) Three types of Risks, which emerge out of the use of Motor Vehicle Third Partly Liability Damages to Own Vehicle Personal Accident Indemnity cover no new for old replacement Sub-products under Motor Insurance Private Cars/ Motorised Two Wheelers / Commercial Vehicles Policy conditions, wordings have been regulated till 2006 by the Insurance regulatory & development Authority (IRDA). De-tariffing process begun in 2007 Policy wordings, conditions are standardized & have to be followed by all insurers (except for add ons / riders).. Third Party & personal accident premium rates are regulated. Own damage risk is rated by individual insurers

4 Motor Insurance De-tariff Roadmap Jan 2007 April 2007 Jan 2008 Jan 2009 April 2012 April 2015 Formation of Motor Third Party Pool for Commercial Vehicles Motor Own Damage add on / rider clauses permitted to be filed & used Minimum Third party premium quota over and above DR Pool obligation Limited de-tariffing of Motor Own damage rates / Revision of third party rates Complete de-tariffing of Motor Own damage rates. Rating to be filed & used Dismantling of Motor TP Pool and formation of DR Pool

5 What is Motor Insurance? Motor as defined under the Motor Vehicle Act is a self propelled vehicle, excluding vehicles running on rails Motor Insurance covers any accidental loss or damage which may result in Creation of Liabilities Accidental Injury / Death of Third Parties Damage to Third Party Property Result in a Financial Loss Accidental Damage to own vehicles Theft of Vehicle / Parts Motor Insurance is PROTECTION against the accidental loss or damage to overcome the Liabilities and Financial Losses.

6 Type of - Motor Vehicles Private cars 2 wheelers* Commercial vehicles Goods carrying (A) ( trucks, Tempos & Pick ups etc) Trailers (B) Passenger carrying (C) (buses, taxis, Autos) Miscellaneous & Special type of vehicle -D (Agricultural tractors, cranes etc) Motor Trade Road Transit risks (E) Road Risks / Trade plate / Trade Certificate (F) Internal risks (G) * Generally Motor policies are for annual period. However for 2 wheeler product customer has an option to buy 2 year or a 3 year liability only or Package policy.

7 Type of - Motor Policies Liability Only Policy Covers Third Party Liability for Bodily Injury and/ or Accidental Death Property Damage Package Policy Covers loss or damage to the insured vehicle, personal accident cover for Driver and Occupants in addition to the third Party liability coverage.

8 Type of - Coverage's SECTION-1: OWN DAMAGE TO THE VEHICLE CAUSED BY:- Accidental External means, Burglary, House Breaking, Theft Fire, Explosion, Self Ignition, Lightning Terrorism, Riots, Strikes, Malicious Acts Transit by road, rail, inland waterways, air or lift Earthquake, Flood, Storm, Landslide or Rockslide Protection and removal costs Private Cars: Two Wheelers: Commercial Vehicles: Up to `1500/- Up to `300/- Up to `2500/-

9 Type of - Coverage's Contd.. PERSONAL ACCIDENT COVER Compulsory PA for Owner driver Covers Accidental Death and Permanent Total Disability Optional Personal Accident cover Any Named Person other than Paid Driver and Cleaner Unnamed Passengers other than Paid Driver and Cleaner Paid Drivers, Cleaner & Conductors

10 Type of - Coverage's Contd.. No Claim Bonus (NCB) It is discount on own damage Premium. An insured becomes entitled to NCB only at the renewal of a policy after the expiry of the full duration of 12 months, if there is no claim made or pending in the policy. Owner Driver Personal Accident Cover The owner of insured vehicle holding an effective Driving License is termed as an Owner Driver. CSI Rs. 1 Lakh CSI Rs. 2 Lakh CSI Rs. 2 Lakh Premium Rs. 50/- (Two Wheeler) Premium Rs. 100/- (Private Car) Premium Rs. 100/- (Comm Vehicle) Capital Sum Insured under Optional PA (Paid Driver / Unnamed Passengers / Pillion Rider) CSI Rs /- CSI Rs /- CSI Rs /- Premium Rs. 7/- (Two Wheeler) Premium Rs. 5/- (Private Car) Premium Rs. 6/- (Comm Vehicle)

11 Exclusions What is not covered Consequential loss Depreciation Wear and tear Mechanical/ electrical breakdown Failures Breakage Damage to tyres (if car not damaged - 50% clause) Known or deliberate accidental losses/damage Intoxicated driver Policy conditions to be followed (area, license etc) Other general exclusions (nuclear war etc)

12 Motor Insurance Add-on Covers Choose Add on s for your Car Insurance

13 Add on offering Zero depreciation (Private car -5 Years & Two wheelers up to 3 rd year) Loss of use (Only for New Private car vehicles) No claim bonus protection Emergency Assistance Engine & gear box protector Cost of consumables Return to Invoice (Private car only up to vehicle age below 3 years) Emergency Assistance Wider cover (Key Protect)

14 Private Car - Current Offering Add-on Vs. Plan Silver Plan Gold Plan Diamond Plan Platinum Plan Titanium Plan Zero Depreciation Loss of Use (New Vehicles Only) Engine and Gear Box Protector No Claim Bonus Protection Cost of Consumables Return to Invoice * Emergency Assistance Emergency Assistance Wider Cover (*New Vehicles) Preferred add on which needs to be sold with Zero depreciation Engine & Gear Box Protection Emergency assistance Emergency assistance wider cover (For New vehicles only) Return to Invoice No claim bonus protection Offering available only with Platinum and Titanium Plan Silver plan not offered on D, E1 & E2

15 Add on Zero Depreciation Provides full claim without any deduction for depreciation* applicable on the Own Damage Section Depreciation for Parts excluded under India Motor Tariff is payable Previous Depreciation Chart as per Tariff: Rubber, nylon/ plastic parts, tyres, tubes, batteries, air bags - 50% Fibre / glass components - 30% All other parts including wooden parts Age <6 m 6m<1yr 1<2yr 2<3yr 3<4yr 4<5yr 5<10yr >10yr Rate Nil 5% 10% 15% 25% 35% 40% 50% Minimum Out of Pocket Expenses No concern about categorization of parts. * Cover excludes Tyres and Batteries

16 Add on Zero Depreciation: Illustration Typical Example: Honda City; Ex-showroom price - Rs. 8,00,000 3 years old; 40% depreciation - Rs. 5,60,000 Partial loss amount - Rs. 1,70,000 Rubber/plastic parts - Rs. 40,000 Metal parts - Rs. 1,30,000 Claim Settlement Without Add on: Less 50% for Rubber/plastic parts Rs. 20,000 Less 25% for Metal Parts - Rs. 97,500 Less Compulsory deductible - Rs. 1,000 Claim payable: Rs. 1,18,500 Claim Settlement With Add on: Less 50% for Rubber/plastic parts Rs. 0 Less 25% for Metal Parts - Rs. 0 Less Compulsory deductible - Rs. 1,000 Claim payable: Rs. 1,69,000

17 Add on No Claim Bonus Protection Retains the No Claim Bonus earned on the Policy named contingencies claims Can be claimed 3 times on the Policy. Subject to occurrence of the following contingencies : Damage to Windshield Glass Loss to parked vehicle by external means Loss to parked vehicle due to flood, earthquake, AOG perils. Typical Example: A parked vehicle is damaged in an earthquake and results in an Own Damage Claim. Having made a claim the Insured would lose the NCB accrued over the past years. This cover would protect the NCB as well as entitle the Insured for bonus to the next slab at renewal. Substantial savings in premium No loss of bonus due to loss caused by event beyond ones control Applicable to partial losses covered

18 Add on Emergency Assistance Provides a host of additional aid and assistance at the time of Emergency. These services may be extended by our TPA. Flat Tyre Repair Minor repairs on accident spot Towing and Ambulance Assistance Emergency fuel delivery Vehicle key service Travel/Accommodation Arrangement Legal services assistance Battery jump start service. Vehicle Repatriation service. Continuation/Return journey. Translator service. Medical Evacuation Makes Sure every you are assisted in every situation. No out-of-pocket expenses. Extra Assurance to give that extra security and peace of mind Subject to loss under Own Damage Section of the Policy

19 Add on Engine & Gear Box Protector Provides cover to internal parts of Engine and Gear Box applicable on OD section Consequential loss excluded under India Motor Tariff is payable Loss arising out of: 1. Water ingression and 2. Damage to engine and gear box arising out of leakage of lubricating oil due to accidental means No worries of driving your vehicle through water logged area Relieves you of the additional expenditure incurred due to damage to internal Engine and gear box parts.

20 Add on Cost of Consumables Provides for payment of consumables such as nuts, bolts, oil etc which are excluded under the own damage claim Typical Example: Honda City; Ex-showroom price - Rs. 8,00,000 Partial loss amount - Rs. 45,000 Painting & Denting Rs. 40,000 Consumables Rs. 5,000 Claim Settlement Without Add on: Less Compulsory deductible - Rs Less Consumables - Rs Claim payable: Rs. 39,000 Claim Settlement With Add on: Less Compulsory deductible - Rs Claim payable: Rs. 44,000 *Cover excludes Tyres

21 Add on Return to Invoice In the event of Total Loss (TL) or a Constructive Total Loss (CTL), the Insurer will pay the Insured, the difference between the claim amount receivable under the motor package policy and the value of vehicle as per the first sale invoice of new vehicle along with the first time registration charges and road tax which was incurred on the Insured vehicle. Eligibility: New Vehicles up to 3 years First registered owner of the vehicle Available to private cars Note- Available with Platinum or Titanium plan only Exclusions: In case of theft stolen vehicle is recovered within 90 days of theft. Final investigation report in case of theft claim is not issued by police authorities Covered vehicle is imported, except for new completely knock down & completely built up unit imported by automotive manufacturer who have their operations in India Any obsolete/manufacturer discontinued make and model as on date of sourcing Any non-original equipment manufacturer fitted electrical or non-electrical accessories including bi-fuel kit, any modification forming part of the invoice but not insured under own damage section of policy.

22 Product USP Zero Depreciation benefits can be utilized for a All admissible claims during the policy period (No Restriction on No. of Claims) Return to Invoice difference between the claim amount receivable under the policy & the value of vehicle as per the first sale invoice of new vehicle including registration charges and road tax Engine & Gearbox Protection - Consequential loss excluded under India Motor Tariff is payable Buy a New Policy or Renew Existing Policy via Online & App (IPO) No Documentation Required while Buying Policy Online Cashless claim service over authorized network of garages across India Seamless claims process with minimum documentation Wide Range of add on Plans i.e. Silver, Gold, Platinum Comprehensive support through our dedicated customer support team Long Term Insurance (2 OR 3 Years) Two Wheeler

23 Documentation POS Policy copy Previous Year Policy (PYP) Pre acceptance inspection (PAI) Report - Inspection Report for Used car, Break in & Zero dep cover Form 29 & 30 (Used Vehicles) Renewal Notice Premium instrument (Cheque & DD) PAN Card in cases where Premium is above Rs. 1 Lakh Anti Theft Discount ARAI Certificate Automobile Association Discount Active membership card RC Copy RI Approval quote for vehicles with IDV of more than Rs. 1.5 Crore for New business in Private car and Rs. 1 Crore for other vehicles.

24 Preferred Risks Private Cars Petrol vehicles Vehicle age up to 15 years Non Zero depreciation policies Goods Carrying vehicles Vehicles below 7.5 GVW 3 Wheeler GCV s Passenger Carrying vehicles 3 Wheeler autos running within city limits School or Staff Bus

25 Private Car: Add-on Covers Sr. No Cover HDFC ERGO Future RSA Bharti TATA AIG Oriental SBI Bajaj ILGIC Chola 1 Zero Depreciation Claim 2 Return to Invoice 3 Engine & Gearbox Protector 4 Reimbursement of Consumables 5 Loss of Use (Garage cash) 6 No claim bonus protection 7 Key Replacement 8 Emergency assistance 9 Voluntary Deductible 10 Add. Personal Accident cover

26 Add-on Covers Comparison Contd.. Add-on Covers HDFC ERGO ICICI TATA AIG BAJAJ Bharti Zero Depreciation Claim No Restriction of Claims 2 Claims Only 2 Claims Only 2 Claims Only 2 Claims Only Damage due to Damage due to Damage due to Water Water ingression Damage due to Water Water ingression ingression & Leakage of & Leakage of ingression & Leakage & Leakage of Damage due to Engine & Gear Box Protector lubricating oil lubricating oil of lubricating oil lubricating oil Water ingression Key replacement cover Repair or replacement of car keys Repair or replacement of car keys and locks Repair or Repair or replacement replacement of of car keys and locks car keys and locks Repair or replacement of car keys Return to Invoice Up to 3 years Up to 3 years Up to 3 years NCB Protection NCB Protected on windshield claim & Parked vehicle damage claim. Next Level of NCB Not Available Does not offer NCB in case (after claim) the customer chooses to rollover his policy during renewal. Also Minimum 25% NCB slab is the eligibility for this cover, and on claim retention of same slab. Max 2 Claims Only new vehicle through dealers Up to 2 years Not Available Retention of same slab of NCB up to 2 claims

27 Add-on Covers Comparison Contd.. No Claim Bonus Protection from RSA offers the benefit on Windshield replacement only. Bajaj - RTI & Tyre cover sold through German manufacturer tie-up majorly. Consumable cover Bajaj has an exclusion wherein, In case of transfer of ownership, the benefits under the cover would expire.

28 Thank You