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Wondering what’s happening in the Indian car insurance space? Worry not, we’ve got the latest updates for you, all in one place! Listed below in a chronological order, you will find breaking news about car insurance products, regulation updates, and lots more. So, now you can read all the latest car insurance news from anywhere, anytime, at your convenience!
The Insurance Regulatory and Development Authority of India (IRDAI) recently issued a circular stating that vehicle owners will not be required to purchase their own damage cover along with the third-party liability insurance policy from the same insurance firm, with effect from 1 September 2019.
Earlier, policy buyers were required to purchase both the third-party liability insurance policy and the own damage cover from the same insurance firm. However, starting from 1 September 2019, policy buyers will be able to renew their own damage cover separately or purchase a new own damage cover from a new insurance provider.
That said, insurance will offer you an own damage cover only if you already have a third-party insurance policy. Thus, when you renew or purchase an own damage cover, you will mandatorily have to provide all the details of your third-party insurance cover.
2 July 2019
The Insurance Regulatory and Development Authority of India (IRDAI) is planning to hike the third-party insurance for four-wheelers by a maximum of 12.5% while for two-wheelers, the insurance will be hiked by a maximum of 21.11%. The revision in the insurance rates will come into effect from 16 June 2019. The cover rates for third-party (TP) insurance for cars usually undergo revision from 1 April but this time, the revision will apply from 16 June onwards. As per the new regulations, vehicles with engine capacity below 1,000 cc will experience an increase of 12% in the TP insurance and so, will cost Rs.2,072. The existing rate was Rs.1,850. A 12.5% hike in the TP insurance will be experienced by vehicles having engine displacement between 1,000 cc and 1,500 cc, taking the new rate to Rs.3,221. For cars with engine capacity more than 1,500 cc, there will be no change in the rates and hence, will remain to be Rs.7,890. IRDAI has also hiked the TP insurance for private and public goods carrying vehicles and buses as well. In the meantime, e-rikshaws will not be witnessing any change in the insurance premiums.
11 June 2019
Last week, the Insurance Regulatory and Development Authority of India (IRDAI) announced that it plans to hike the premium payable for third-party motor insurance by about 10% to 20%. This will be applicable to taxis, cars, and two-wheelers. This includes even insurance for trucks. Truck unions have, however, been asking for lower insurance premium rates. Since the insurance premiums were reduced by around 10% to 20% last year, the new rates are expected to bring the rates at par with the rates before last year’s premium rate revision. The IRDAI is likely to hold back on premium hikes for luxury cars and two-wheelers as the rates were already increased by more than 100% last year.
As per the apex insurance regulator’s recent proposal, the insurance premium for 75 cc vehicles such as scooties, mopeds, and other two-wheelers are expected to increase by 13% to an amount equal to Rs.482. The premium rates for motorbikes and scooters with engine capacities between 75cc – 150cc, is to be increased by 4.4% to an amount equal to Rs.752. Since insurance penetration is low, the motor insurance sector is not very profitable. Often, the amount paid as claims is more than the amount collected. Therefore, some people are of the opinion that an increase in the insurance premiums will only further reduce insurance buying.
27 May 2019
Hyundai has stepped up to provide aid to Hyundai car owners in Cyclone Fani-hit states in the country. A relief task force has been set up by the company in Orissa and West Bengal, where the cyclone has left several vehicles damaged. Hyundai has sent out 21 tow trucks and 26 flatbed trucks to the affected areas to help car owners get their cars out of debris. As per reports, 40 technicians will work 24*7 to ensure the cars are usable once again.
The company has said that it will provide a 50% discount on depreciation for insurance claims. Also, special discounts will be offered on lubricants and spare parts.
10 May 2019
Internet enabled cars which will be launched soon in the Indian market and can be operated via sim cards will not only become a major product but will also improve the overall sales.
The new age car can be controlled with the help of a sim card or E-sim. This technology is expected to bring major changes to different industries including the insurance sector.
The higher variant car models may not become a hindrance in terms of sales as customers will get to enjoy various types of futuristic services. Apart from that, various auto and telecom companies will be able to enjoy higher tertiary revenues.
Hyundai and MG Motors are two automobile companies who have announced that their upcoming models will sport this technology.
2 May 2019
In what would be joy for women across of the country and satisfaction, Kotak Mahindra General Insurance, have announced that they will be offering cheaper car insurance premiums for women drivers through their campaign, DriveLikeALady. According to the General Insurer, the reason that they decided to offer cheaper car insurance premiums to lady drivers is because they can statistically prove that women drivers are safer than men and that their attitude on the road is way better than men as well. According to Kotak Mahindra Insurance, they personally have received lower claims from women than men. Speaking at the launch of the campaign, and reporting to Times, the Managing Director of Mahesh Balasubramanian, said that women tend to be more caring, patient, poised and calmer than men. This also reflects in their driving behaviour. Therefore, if men were to imbibe this positive attitude, our roads will be a lot safer. This thought formed the genesis of Kotak General Insurance’s #DriveLikeALady campaign. In addition to this, our claims data clearly identifies women drivers as being safer and more mindful of the road and safety rules.
25 April 2019
The IRDAI did not revise the motor insurance premium this fiscal year though it does so every year. This is most likely going to affect the overall profitability of insurance companies. This is so because the general insurance business largely depends on the motor insurance segment. Insurance companies expected an increase in the premium rates as the collections this year were low and the claims were high. Since the premium rates have not been revised, certain insurers may resort to cutting down on discounts to make up for the loss in revenue. Usually, the IRDAI increases the premium rate by 10% to 40% depending on the vehicle for which the change in rate is being made. Insurers were expecting at least a marginal increase this year. It is said that this is the first time in many years that the apex regulator has extended the validity of the current rates until further notice.
However, there were certain motor insurance premium hikes last year when the insurance regulator announced a new regulation which requires car owners to get a three-year long-term insurance policy and bike owners to get a five-year long-insurance policy.
16 April 2019
According to a data by Kotak General Insurance for a duration of one year from July 2017 to July 2018, it has been found that women make fewer motor claims which makes it profitable for insurance companies to have more women as customers.
The loss ratio during the period was 46.94 per cent as compared to 60.69% for men.
The claims ratio for petrol and diesel cars bear similar results for women and men. The data clearly shows that for every 100 rupees of premiums paid, men claimed Rs.70 while women claimed only Rs.48 for diesel cars. For petrol cars, the loss ratio for men was 53.59% and 46.30% for women.
8 April 2019
The Punjab and Haryana High Court said that a person borrowing a car is as eligible to receive the insurance claim in case of an accident as much as the owner.
The High Court bench dismissed a plea filed by Bajaj Allianz General Insurance Company against the compensation that the Motor Accident Claims Tribunal (MACT), Chandigarh had upheld the 26.12 lakh that was supposed to be paid to a family living in Sector-35.
In June 2010, a family had borrowed a Maruti Zen car to travel somewhere in Punab. While coming back it met with an accident which resulted in the death of one of the members of the family. The family had claimed compensation of Rs.1 crore from the driver of a tractor trolley.
5 April 2019
In what would be good news for vehicle owners in the country as well as vehicle manufacturers, the Insurance Regulatory and Development Authority of India has decided not to increase the third-party motor insurance premium rates for two-wheelers and four-wheelers. Usually, the third-party premium rates are revised every year by the IRDAI and the increased by 10-40%. However, following the Supreme Court of India ruling to mandate long-term third-party sales for four-wheelers and two-wheelers in September 2018, which has made even the third-party insurance policy an expensive purchase for vehicle owners, the IRDAI has decided not to increase the third-party premium rates. As per the new rates rolled out by the IRDAI, for two-wheelers below 75cc, the premium will stand at Rs.427, with the premium for 75-150cc set at Rs.720 and for high-powered vehicles above 150cc set at Rs.985. In the case of 4-wheelers, the premium for small cars has been set to Rs.1,850, while SUVs and cars above 1,500cc the premium has been set at Rs.7,890, and for sedans between the 1,000cc to 1,500cc the rate has been set to Rs.2,863.
2 April 2019
With the United Kingdom announcing a while back that only electric vehicles will ply on their roads, India too has followed the right path and has announced that they will make it compulsory for all public vehicles and passenger vehicles to be electric. Seeing the future at hand, car manufacturers Volvo have announced that they will be rolling out their own segment of electric cars with their planned hybrid models. The announcement of their plans to roll out the hybrid cars was announced by Frump, the managing director of the manufacturer, at the ‘Clean Air’ campaign at New Delhi. In the next three years, the car manufacturer is planning to launch their hybrid cars in India, which would be their first time of launching an electric car in the country. According to the car manufacturer, the car will come with 2 charging points, and it will be equipped with DIY dry air purifiers, in which the car will filter air pollutants and give out clean air. To their add to their contribution towards the Clean Air campaign, the car manufacturer announced that they will also be setting up clean air spots in the city of New Delhi.
22 November 2018
Although the festive season has passed, car manufacturers like Maruti Suzuki are offering attractive discounts on select models this November. The Alto 800, which is an entry-level offering from the company, is being offered with discounts of up to Rs.55,100. Maruti is also offering a discount of up to Rs.55,100 on the Alto K10.
The Wagon R, as part of the company’s year-end discount offer, is being sold with a discount of up to Rs.70,100. Similarly, the Maruti Dzire is being offered at a discount of up to Rs.62,500. The petrol variant of the car, however, is offered with a maximum discount of Rs.62,500.
The Celerio, which is another popular offering from Maruti Suzuki, is being offered at a discount of up to Rs.65,100. Maruti Ignis, which was introduced in the year 2016, is offered with a maximum discount of Rs.50,100 by the car manufacturer.
In addition to the above-mentioned cars, Maruti Suzuki is also offering discounts on the Swift, Baleno, Ciaz, and the S-Cross Delta.
21 November 2018
With the Supreme Court in August 2018 making the long-term third party insurance mandatory for both four-wheelers and two-wheelers, the Insurance Regulatory Development Authority of India is looking to make changes to the current stringent policy coverages as offered with motor insurance policies as of now in the country. The insurance regulator in the country is looking at making it possible to use technology to ensure a dynamic premium pricing based on a number of factors including the driving history of the customer. To make this is a possibility, the IRDAI is looking at using tracking devices. Though a third party insurance policy is standardised with its coverage, with the comprehensive motor insurance policy, customers have the option choosing add-on covers such as the engine protect cover, nil depreciation cover, roadside assistance cover and so on, with their base policy. However, the Indian market does not offer the add-on covers in their base motor insurance policy and customers have to shell out extra for such benefits. That said, the IRDAI is looking adding such benefits to the core policy as is the case with motor insurance markets abroad.
20 November 2018
As part of the winter camp, Renault India, has planned to give exciting discounts on accessories and spare parts between November 19 and November 25. Renault owners who wish to get upgrades, services, or new accessories can avail good offers during the offer week. Along with this, Renault will offer Renault Secure, a roadside assistance and warranty package, at a discounted price. Special plans for car insurance renewal, through Renault Assured, will also be available during the offer week. The reason for setting up the winter camp is to make sure the cars are prepared to endure the tough weather conditions lying ahead. Trained technicians will be put in charge to do complete servicing of the cars. The check-up of the functioning of the car will be done as per the guidelines laid down by Renault India. Regular check-ups of the car will ensure proper and smooth functioning of the car throughout the year. Along with the services and discount prices of spare parts and accessories, the company will hold several fun activities that assure gifts which will make the entire experience gleeful.
20 November 2018
BMW released a press release stating that they now have an online portal wherein prospective BMW buyers can place orders for their dream BMW. The launch will appeal to the modern-day tech-savvy consumers who prefer shopping online. One can select a car, book it and make the payment online through a secure interface. The portal has a virtual car configurator that lets users build their own BMW and book the car. The website will be functional round the clock and has excellent financing options. Instant consultation can be availed through the website too. BMW is the first company to offer cars online for the entire product range available in the country. The portal even has a virtual assistant named BMW Online Genius with which an individual can ask queries too. Answers to any questions asked will be given instantly. Apart from these features, individuals can also request for a test drive, choose the preferred dealership from where he/she wants the car, check the real-time status of the booking, and so on. Along with the launch of the online service, BMW has announced an offer price on the BMW X5. Up to Rs.1 lakh will be offered as benefits on the online platform. A 3-year complimentary service and maintenance package and a 1-year car insurance plan will also be offered.
16 November 2018
As with most car manufacturers in the country that have rolled out attractive discounts this festive season to lure customers, Hyundai too have rolled out attractive offers and discounts on their car variants up to Rs.1.8 lakh. With the Hyundai Eon, the car manufacturer is offering a cash discount of Rs.45,000, an exchange offer of Rs.10,000 and a corporate discount of Rs.5,000, taking the total discount to Rs.60,000. For the Hyundai Grand i10, the car manufacturer has rolled out a cash discount of Rs.40,000 while the diesel variant of the car is offered at a discount of Rs.50,000. Here too, a corporate discount of Rs.5,000 is available. For the Hyundai Xcent, the car manufacturer is offering discounts up to Rs.90,000. Customers can avail a cash discount of Rs.45,000 and an additional corporate discount of Rs.5,000 plus additional discounts amounting to Rs.90,000. For the Hyundai Elite i20, the car manufacturer is offering a cash discount of Rs.20,000 plus an exchange bonus of Rs.30,000. With the Verna model, the company is offering a cash discount of Rs.20,000 plus an additional corporate discount of Rs.20,000.
16 November 2018
As with most car manufacturers in the country that have rolled out attractive discounts this festive season to lure customers, Hyundai too have rolled out attractive offers and discounts on their car variants up to Rs.1.8 lakh. With the Hyundai Eon, the car manufacturer is offering a cash discount of Rs.45,000, an exchange offer of Rs.10,000 and a corporate discount of Rs.5,000, taking the total discount to Rs.60,000. For the Hyundai Grand i10, the car manufacturer has rolled out a cash discount of Rs.40,000 while the diesel variant of the car is offered at a discount of Rs.50,000. Here too, a corporate discount of Rs.5,000 is available. For the Hyundai Xcent, the car manufacturer is offering discounts up to Rs.90,000. Customers can avail a cash discount of Rs.45,000 and an additional corporate discount of Rs.5,000 plus additional discounts amounting to Rs.90,000. For the Hyundai Elite i20, the car manufacturer is offering a cash discount of Rs.20,000 plus an exchange bonus of Rs.30,000. With the Verna model, the company is offering a cash discount of Rs.20,000 plus an additional corporate discount of Rs.20,000.
16 November 2018
The Environment Pollution (Prevention and Control) Authority (EPCA) has recommended Delhi to either implement the odd-even scheme or completely ban private non-CNG vehicles. The odd-even scheme is basically a regulation wherein vehicles with odd and even registration numbers will be permitted on roads on alternate days as the air quality in Delhi is worsening. The scheme was implemented earlier in the year 2016. The EPCA sent a letter to the Central Pollution Control Board (CPCB) stating that the two options should be considered on an emergency basis. The CPCB, however, reacted to the recommendation by saying that the EPCA should carry out the implementation, especially the complete ban on private non-CNG vehicles, as it is a larger body. Though the air quality in Delhi had improved after recent showers and reduction of stubble burning in neighbouring states, the air cannot be considered safe. Also, the situation worsened post Diwali. Though CPCB said that EPCA should implement the suggestions made by them, the protocol states that EPCA can implement only anti-pollution suggestions made by the CPCB. The CPCB task force said that the EPCA should discuss the measures being implemented and suggestions made already.
15 November 2018
Honda recently confirmed that it will be rolling out electric vehicles in the country between 2023 and 2024. The car manufacturer’s first electric vehicle is expected to be an SUV or a ‘B’ segment vehicle. The roll-out of the all-electric vehicle will follow the hybrid solution of the Honda City.
Until recently, Honda had not specified a timeline for the launch of its electric vehicles, although it had shown an interest in the same. Honda, which was completely dependent on the petrol engine offerings that are available in the market in India, launched its first diesel engine in the country with the launch of the Honda Amaze.
14 November 2018
With motorists across the country scrambling to get the new long-term third-party insurance coverage that was earlier mandated by the Government of India, DHFL General Insurance has made it even better for their customers by rolling out the COCODrive Car Insurance policy. The COCODrive car insurance policy comes with the Outstanding Loan protector that comes with an additional life insurance option and a personal accident cover all amounting to a maximum of Rs.35 lakh. The COCODrive car insurance policy that was launched by DHFL General Insurance is a comprehensive car insurance policy and offers coverage for both the third party involved in the accident as well as the policyholder. DHFL General Insurance has even offered as many as 19 add-on covers that policyholders can choose from when purchasing the car insurance policy. Based on the location of where they will be driving their car, policyholders can opt for the zero depreciation cover, NCB (No Claim Bonus) protect cover, EMI protector, Outstanding Loan Protector, etc. In fact, based on the location of the policyholder, the insurer customises and offers suitable add-on covers. For example, the engine protect cover for those residing on flood prone areas, etc.
13 November 2018
In order to lure customers to get their hands on their dream car, car manufacturers Nissan and Renault rolled out attractive discounts up to Rs.2 lakh for their car variants this festive season. For the Kwid, car manufacturer Renault has rolled out a 50% discount on the 1st year of car insurance, a 4 year warranty as well as an exchange offer up to Rs.15,000. For the CVT transmission Duster variant, the car manufacturer has rolled out an introductory offer of Rs.9.95 lakh and a Rs.60,000 cash discount for the car insurance for the first year. For the Lodgy variant, Renault rolled out a cash discount of Rs.30,000and for the Captur variant, a discount of Rs.2 lakh is offered by the car manufacturer along with a free first year of car insurance. Nissan has offered an exchange discount of Rs.12,000 for their RediGo variant along with a complimentary 2 gram gold coin. The Micra model is offered at a Rs.15,000 exchange cash discount along with a free 3 gram gold coin. For the Sunny model, Nissan has offered a Rs.30,000 exchange offer along with a free 3 gram gold coin on purchase of the vehicle.
13 November 2018
9 November 2018
According to data released by the Society of Indian Automobile Manufacturers (SIAM), sale of domestic passenger vehicles increased by 1.55% to 2,84,22 unit in October 2018, in comparison to 2,79,877 units in the year-ago period. Total car sales grew by 0.38% to 1,85,400 units during the period under review, as against 1,84,706 units in the previous financial year.
Motorcycles sales rose by 20.14% to 13,27,758 units in October 2018, in comparison to 11,05,140 units in the year-ago period. Overall two-wheeler sales increased by 17.23% to 20,53,497 units in October 2018, in comparison to 17,51,608 units in October 2017.
SIAM also said that the sale of commercial vehicles increased by 24.82% to 87,147 units during the period under review, in comparison to 69,816 units in October 2017. Motor vehicles sales across all categories witnessed a total growth of 15.33% to 24,94,426 units in October 2018 from 21,62,869 units in the year-ago period.
9 November 2018
COCO by DHFL General Insurance recently launched its second retail insurance product called COCODrive, which is a customisable comprehensive car insurance policy. By making use of Machine Learning, Artificial Intelligence, and evolved algorithms, COCODrive enables car owners across India to choose add-ons that are suitable and relevant to their needs.
The COCODrive policy is built to offer customers a choice of 19 add-ons. Prospective customers can opt for add-ons like the Outstanding Loan Protector, EMI Protector, NCB Protect Cover, Key and Lock Replacement Cover, etc.
Further, in addition to providing coverage across the country, this policy also provides coverage in various countries neighbouring India such as Bhutan, Nepal, Bangladesh, Pakistan, Maldives, and Sri Lanka.
The add-on menu is powered by the use of Machine Learning and Artificial Intelligence technology solutions, which makes it both customised and hyper-localised. Thus, customers are shown add-ons choices that are suitable for the region that they live in.
COCO by DHFL General Insurance uses easy-to-understand language, social media and video communication, and infographics to make the entire process more simple for the policy buyer. It also explains various terms such as cancellations, renewals, disclosures, and escalations in engaging terms. The claims process is also explained with comprehensible text and visuals.
8 November 2018
Maruti Suzuki is offering discounts of up to Rs.75,000 on a number of its models including the Alto 800 and K10, Wagon R, Dzire, Celerio, and the Swift. The car manufacturer is offering the Alto 800 with a discount of Rs.45,000. In comparison the Alto K10 and Alto K10 Automatic are being offered with discounts of Rs.50,000 and Rs.55,000, respectively.
Similarly, Maruti Suzuki is offering the larger, petrol-variant of the Wagon R with a discount of Rs.55,000, while the CNG variant will be sold at a discount of Rs.60,000. In comparison, the AMT variant will be discounted by Rs.65,000.
The Celerio LXi will be sold with a discount of Rs.45,000, while the ZXi and the AMT variants will be discounted by Rs.55,000 and Rs.60,000, respectively. Maruti Suzuki is also offering discounts on the Eeco and the present-generation Ertiga.
The car manufacturer has also announced a discount of Rs.25,000 and Rs.40,000 on the petrol and diesel variants of the Dzire, respectively. The new Swift is expected to be sold with a discount of Rs.25,000, while the diesel variant of the car will be offered at a discount of Rs.35,000.
2 November 2018
Aston Martin has launched its new Vantage 2018 priced at Rs.2.86 crore in India. The vehicle is capable of going from 0 km/hrs to 100 km/hr in just 3.6 seconds and is powered by a 4.0 litre, 510 PS/685 Nm twin-turbo V8 mated to an eight-speed transmission. The car can touch the highest speed of 195 mph.
The vehicle is known to generate a great amount of downforce due to the inclusion of new side gills integrated into the body surface which also helps in removing a significant amount of air pressure from the wheel arches.
Aston Martin’s Vantage also comes with Electronic Rear Differential which is linked to the vehicle’s electronic stability control system. This feature understands the behaviour of the vehicle and reacts accordingly to the power of the engine. At higher speeds, this feature takes control of the car’s dynamic behaviour.
31 October 2018
Indian car manufacturers are launching a few much-awaited cars in November 2018. Mahindra and Mahindra is all set to launch its new flagship model in November this year. The car is expected to be named the Mahindra Inferno. The expected price of the SUV is approximately Rs.24 lakh and will rival the Ford Endeavour and the Toyota Fortuner. The new model will be powered with a 2.2.-litre turbocharged diesel engine that has a maximum power of 187 bhp.
The new Maruti Ertiga will also be launched on November 21. The second-generation of the MPV has more features and a more spacious interior. The car also has a petrol engine. The cost of the new Maruti Ertiga is expected to range between Rs.7.5 lakh and Rs.12 lakh. While the diesel-variant of the Maruti Ertiga will continue to retain the 1.3-litre diesel engine, the petrol variant of the car will be powered by a K15B 1.5-litre petrol engine.
31 October 2018
With Diwali around the corner, car manufacturers and dealers across the country are offering huge festive discounts to attract new customers. The discounts are likely to have a huge impact on the sales volume across segments.
While luxury car manufacturers like Audi are offering discounts upto Rs.11 lakh on their variants, other manufacturers are offering discounts ranging between Rs.45,000 and Rs.8.5 lakh. Jaguar Land Rover is providing a discount of Rs.8.5 lakh on its Range Rover Evoque, while the discount on the Jaguar XE is Rs.7.5 lakh.
Maruti Suzuki and Hyundai, the most popular brands in the country are offering discounts on various models. While the discount on the Swift is around Rs.45,000, the WagonR is being offered with a discount of upto Rs.75,000. Hyundai is offering discounts ranging between Rs.50,000 and Rs.70,000 on its range of hatchbacks.
30 October 2018
According to the Nashik consumer forum, insurance companies in India cannot deny any claims related to the theft of vehicles that are parked in open space. The consumer forum stated this while resolving a claim dispute filed by Sudhir Dhanorkar against the National Insurance Company. In this case, the insurer has rejected the claim because the vehicle was not parked in the parking space when it got stolen.
The consumer forum cited the decision of National Consumer Disputes Redressal Commission (NCDRC) while settling the case. It ordered the insurer to pay Rs.3.46 lakh to Sudhir Dhanorkar along with the interest of 10% per year. The forum also asked the insurer to pay an additional Rs.7,000 for mental distress and Rs.3,000 for the costs incurred regarding this case.
The National Commission has earlier made a ruling that insurers must settle claims even in situations where the windows of cars are left open or the keys left attached to the vehicle. These cases, according to the commission, must be treated as non-standard and dealt with accordingly.
29 October 2018
With Diwali around the corner a number of car manufacturers are gearing up with new offerings, aiming to cash in on the festive season. Manufacturers like Maruti Suzuki, Tata, Mahindra, and Honda are likely to launch new vehicles following Diwali, with these vehicles likely to hit the market in 2019.
Mahindra is likely to launch its new XUV700 in November this year, with the seven seater being powered by a 2.2 litre diesel engine. This car will compete with the likes of the Fortuner and Endeavour when launched.
Maruti Suzuki is likely to launch the new Ertiga after Diwali, with the newer model being slightly more spacious than the previous one. The company is also looking to launch the 2019 version of its Wagon-R.
Tata Motors will likely launch its premium SUV, the Harrier in January 2019, with the Harrier likely to compete with the Hyundai Creta.
26 October 2018
With the festive season around the corner, Renault is aiming to cash in on the demand for new cars, with the manufacturer offering benefits worth Rs.30,000 on its best-selling model in India, the Kwid.
Customers in north India, namely in the states and UTs of Punjab, Jammu and Kashmir, Himachal Pradesh, Haryana, Chandigarh, Uttar Pradesh, Rajasthan, and Uttarakhand are being offered a four year warranty package which includes the standard two year/50,000 km warranty and an additional two year/50,000 km warranty. The company is also offering exchange benefits upto Rs.15,000 and insurance for the first year at Re.1. A corporate bonus of Rs.2,000 is also on offer.
In other states the benefits are reduced to Rs.20,000, with Renault offering free accessories worth Rs.5,000 and insurance for the first year at Re.1.
25 October 2018
Maruti Suzuki India managed to maintain its pole position as the leader in the domestic passenger vehicle segment for the month of September with seven of its model appearing in the top ten list.
Hyundai Motor India, one of the biggest rivals of Maruti Suzuki made its presence felt with three of its model featuring in the top 10 list.
In a data compiled by Society of Indian Automobiles Manufacturers (SIAM), Maruti Swift took the number one position with a total of 22,228 units sold during the month of September as compared to 13,193 units that were sold last year in September.
Maruti’s Alto and Dzire took the second and third spot respectively with 21,719 units of Alto and 21,296 units of Dzire sold in the month of September this year.
Baleno which took the fourth position sold a total of 18,631 units, while Vitara Brezza was on the fifth spot with 14,425 units sold.
Wagon R took the sixth spot, while Hyundai’s i20, i10, and SUV Creta took the seventh, eighth, and ninth spot respectively. Maruti Suzuki Celerio moved up to take the tenth position on the list.
24 October 2018
Car manufacturers are offering discounts up to Rs.1.5 lakh on car models that will be getting a facelift. These offers are expected to last till November. Mr. Shekar Viswanathan, the Vice Chairman and Whole-Time Director of Toyota Kirloskar Motor, said that a number of car manufacturers have unsold inventory that has been piling up at various dealerships, which is why companies have been offering attractive discounts to car buyers.
The discounts offered include a free insurance cover of up to Rs.60,000 on certain car models, exchange bonus, extended warranty, free accessories, cash discount, loyalty bonus, free international leisure trips, corporate discount, etc. The average discount for most cars range between Rs.25,000 and Rs.45,000, while the highest discount offered is Rs.1.5 lakh.
23 October 2018
Car dealers always offer great offers around this time of the year. This year, too, several car manufacturers, including luxury car manufacturers are offering cash discounts, corporate discounts, discounts on car insurance, first EMI waiver and so on this festive season. Audi is offering discounts up to Rs.6 lakh for Audi Q3 and Audi Q5 and up to Rs.7 lakh for Audi 7. Mahindra is said to be offering exciting discounts for select models – XUV500, Bolero Power Plus, Marazzo, Rexton, and Scorpio. Renault is reported to be offering discounts on five of its models – Captur, Duster 110PS Diesel, Lodgy Stepway, and Lodgy. Honda has an exchange offer, one-year free car insurance, and free accessories for its popular model, BR-V. Tata is offering exchange bonuses and free insurance policies for Hexa and Nexon. Ford is offering discounts up to Rs.30,000 for Endeavour 4x2 Trend AT and up to Rs.20,000 for EcoSport. Maruti Suzuki dealerships are offering great discounts on their Ertiga model. Apart from these, customers can get discounts on Jeep Compass, Hyundai Tucson, Nissan Terrano, and Honda WR-V this festival season. If you’re looking to buying a new car, don’t forget to get the best suitable car insurance plan too.
18 October 2018
The automotive insurance industry is currently undergoing a major change with the introduction of various technological features. The claim process is getting automated with the help of various digital channels. The introduction of various new technologies like blockchain, artificial intelligence, Internet of Things, etc., the entire business model of the automotive insurance industry is witnessing a major change.
Risk-based pricing is another major change that is currently being witnessed in the motor insurance industry. With the introduction of telematics, it is possible to assess the risk of an individual before setting the price for his/her insurance.
Customers are also now empowered with the option to self-settle various simple claims. They can do this by documenting the damage of their vehicle and filing for claims through smart devices. This has considerably reduced the claim-settlement time in most cases. All these factors have resulted in disruptive changes in the motor insurance industry.
17 October 2018
With the festive season having just begun, a number of car manufacturers are offering discounts on their cars. Maruti Suzuki, one of the leading car manufacturers in the country, is offering a cash discount of Rs.40,000 and an exchange bonus of Rs.50,000 on its Dzire model.
Hyundai, another leading car manufacturer, is offering a cash discount of Rs.40,000 with an exchange bonus of Rs.50,000 on the Xcent. Government employees are being offered an added discount of Rs.5,000. The company is also offering a discount of Rs.35,000 along with an exchange bonus of Rs.25,000 on the Elantra. Similarly, Hyundai is also offering a discount of Rs.20,000 with an exchange bonus of Rs.20,000 and an additional discount of Rs.20,000 on the Verna.
Honda is offering an exchange bonus of Rs.62,000 for the Honda City. The Toyota Yaris is being sold with free accessories that are worth Rs.10,000 with an extended warranty of 5 years, while the Toyota Etios is being sold with a cash discount of Rs.20,000 and an exchange bonus of Rs.15,000.
The older model of the Ford Aspire is being offered with a cash discount of Rs.40,000 and an exchange bonus of Rs.40,000. Tata Motors is also offering a discount of Rs.60,000 on the older model of the Tigor along with an exchange bonus of Rs.20,000 and an additional discount of Rs.2,500.
16 October 2018
Due to the drop in sales of cars caused by the rising fuel costs, dip in the value of the rupee, and increase in the cost of car insurance, manufacturers of cars and SUVs offer attractive discounts during the festive season to help improve sales figures. It has been observed that prospective buyers are postponing their buy due to the rise in costs. The Society of Indian Automobile Manufacturers (SIAM) had estimated the growth of the car industry to be 9%-11%, but it has now revised the forecast and expects it to be downward. Companies like Maruti Suzuki, Mahindra and Mahindra, Tata Motors, Audi, Hyundai, and Ford offer discounts on sedans, hatchbacks, and SUVs. Maruti Alto 800 is being offered a discount of Rs.25,000, Swift/Swift Dzire Rs.20,000, WagonR Rs.40,000, Hyundai’s Grand i10 Rs.40,000, Mahindra’s Scorpio Rs.58,000, etc. Luxury car manufacturers like BMW and Mercedes-Benz are also witnessing a drop in sales. Apart from the rise in insurance costs, the stock market changes, and recent political discourses also dissuade customers from buying cars at the moment. Therefore, car dealers are offering discounts on various models to encourage customers to buy cars this season.
15 October 2018
Skoda India offers various discounts on its few models available in India. The Czech car manufacturing company offers four models in India – Superb, Octavia, Rapid, and Kodiaq. While Kodiaq is an SUV, the rest are sedans. To add to the SUV models available in India, Skoda is expected to launch another SUV named Karoq in India soon.
The discounts being offered on the current models include various EMI options, exchange bonuses, and insurance discounts. However, the offers last only up to October 20. Octavia and Kodiaq have EMI offers starting from Rs.17,777 and Rs.19,999 respectively for a period of 7 years. Both the models have finance offers at the rate of 9.27% with bullet EMI. While Octavia is priced between Rs.15.99 lakh and Rs.25.75lakh, Kodiaq is priced at Rs.33.84 lakh. Rapid has finance options at the rate of 8.99%, offers an exchange bonus for a maximum amount of Rs.50,000, and a 50% discount on the car insurance policy too. The price range of the model is from Rs.7.99 lakh to Rs.13.97 lakh. The Superb model priced in the range of Rs.25.59 lakh and Rs.32.99 lakh offers a complimentary car insurance policy for the first year and the EMI option offered starts from Rs.18,888 for a period of 7 years.
12 October 2018
The Insurance Regulatory and Development Authority of India (IRDAI) has recently announced that car and two-wheeler owners can now decide the policy tenure of the personal accident cover.
Earlier this year in September 2018, the insurance regulator made it mandatory for car and two-wheeler owners to purchase motor insurance policies with a mandatory personal accident cover of Rs.15 lakh. Before this, car owners were given a mandatory personal accident cover of Rs.2 lakh, while two-wheeler owners were given a compulsory personal accident cover of Rs.1 lakh.
In a recent circular that was issued, the insurance regulator has clarified the insurance companies cannot force policy buyers to avail the personal accident cover for a certain number of years. Instead, vehicle owners will be given the option to choose the term of the personal accident cover.
Motor vehicle manufacturers had previously expressed concerns that the mandatory personal accident cover would add to the price of the 5 year/3 year motor insurance policies. The premium for the Rs.15 lakh personal accident cover was fixed at Rs.750 per annum, which was a substantial jump from the previous premium of Rs.100 for cars and Rs.50 for two-wheelers.
All vehicle owners are required to have a personal accident cover, as per motor insurance regulations. These regulations, however, are not applicable to fleet cars. As a result, insurance companies that offer motor insurance policies are required to provide personal accident coverage for both third-party liability-only insurance plans and comprehensive insurance plans.
11 October 2018
With the advent of the festive season, Tata is offering discounts on its various models. The Tata Tiago hatchback which has been a runaway success in India is being offered to its customers at an exchange bonus of Rs.10,000 and insurance for the first year at just Rs.7,400.
Tigor is being offered to the customers for an exchange bonus of Rs.20,000 and first-year insurance worth Rs.6,899.
People who are planning to purchase Tata exon will be offered an exchange bonus of Rs.15,000 and first-year insurance worth Rs.13,000.
Owners of Tata Hexa can avail discount and benefits worth up to Rs.98,000 including the insurance for the first year. Similarly, the owner of Tata Zest can avail discount and benefits of up to Rs.70,000. The discount will include Rs.45,000 cash and Rs.25,000 as a cash bonus. People who are looking to purchase the Safari Storme SUV will receive benefits up to Rs.80,000.
11 October 2018
The Society of Indian Automobile Manufacturers (SIAM) has asked the Insurance Regulatory and Development Authority of India (IRDAI) to de-link the personal accident cover from third-party liability-only insurance, as a result of third-party insurance covers becoming quite expensive.
The SIAM is of the opinion that de-linking the personal accident cover from third-party insurance will bring down the cost of the insurance policy. Vehicle owners can then purchase personal accident policies on a yearly basis and pay the due premium amount for only that policy year and not for a tenure of 3 years or 5 years.
The insurance regulator is expected to review SIAM’s representation and issue a new revised circular shortly. The development follows the Supreme Court’s order to make five-year third-party liability insurance policies and three-year liability insurance policies mandatory for new two-wheeler buyers and car buyers, respectively, starting from September 1.
Given that third-party liability insurance policies also offer coverage against personal accidents, policy buyers are required to pay the premium for the personal accident cover for the entire policy tenure of 3 years or 5 years, thus shelling out a higher sum of money.
10 October 2018
HDFC Bank claims to have become the first bank in India to offer a plethora of digital payment options to its customers to auto-renew their motor insurance. The private lender said that the customers can auto renew their motor insurance policy through options such as SMS, net banking, ATM, mobile banking, and PayZapp.
According to the prevailing rules and regulations, a person who owns a vehicle needs to have a motor insurance policy. Motor insurance policies are required to be renewed on an annual basis. HDFC is providing these options to its customers to make the process of auto-renewal more convenient. The customer can also choose to pay the renewal premium as EMI while paying through PayZapp, net banking, or SMS.
8 October 2018
Dealers of various top car brands are offering massive discounts for this festive season which starts from Navratri in October. Dealers of top brands like Maruti Suzuki, Hyundai, Honda, Mahindra, Toyota, Ford, Tata, etc., are offering great discounts for their customers. Cash discounts to the tune of Rs.9.5 lakh are offered (for Mahindra Rexton) by dealers during this festive season.
The amount of cash discount offered by dealers varies from one brand to another. For instance, Maruti Suzuki dealers offer a cash discount up to Rs.1 lakh, whereas Hyundai dealers offer a cash discount of Rs.90,000. In addition to the cash discount, dealers also offer exchange discounts for their customers. Dealers of top brands offer these discounts on most of the latest models in their lineup.
In addition to the discounts, some dealers also offer various additional benefits like free insurance, extended warranty, etc. Considering the multitude of deals available with various car dealers, this festive season seems to be the best time for buying a new car.
5 October 2018
Maruti Suzuki, which displayed the Future S concept, a micro SUV at the 2018 Auto Expo, is likely to launch the vehicle in 2019. With a wheelbase and length similar to the Maruti Suzuki Ignis, the Future S will be a compact SUV. Like the Vitara Brezza, the Future S, which measures lesser than 4 metres, will get tax benefits that are offered to four-wheelers that are under 4 metres.
The only SUV that Maruti Suzuki offers as of now is the Vitara Brezza. However, with the increasing demand for SUVs, Maruti, which was previously known for its hatchbacks, is now targeting the SUV segment.
The concept car features a high seating position, an upright stance, a vertical A-pillar, high mounted lights, well-defined haunches, and big wheel arches. It is likely that these specifications could be featured in the production version. The car is expected to be launched during the Diwali festive season next year and the prices for the micro SUV are expected to start from Rs.5 lakh.
4 October 2018
Renault unveiled the facelifted version of its Kadjar SUV at the 2018 Paris Auto Show hinting similar updates for the India-specific Captur model in the next few years. Renault Kadjar SUV is mainly intended for the European market. The vehicle displayed at the auto show came in a metallic blue colour and it is still in the testing phase.
The facelifted version of Renault Kadjar came with an evolutionary design. Some of the notable features of the updated version include chrome grille, chrome inserts on tailpipes, MPV-SUV hybrid stance, touchscreen control system, climate control knobs, etc.
The vehicle displayed in the auto show featured a 1.3-litre turbocharged petrol engine that delivers an output of 140 bhp or 160 bhp. The vehicle also came with a six-speed manual transmission or seven-speed automatic transmission. The diesel version of the vehicle featured a 1.4-litre engine that delivers an output of 84 bhp or 110 bhp. The transmission of the diesel variant is similar to the petrol version.
3 OCtober 2018
Maruti Suzuki reported a slight rise in the sales of its cars for the month of September bringing an end to a decline that had lasted consecutively for two months. The sales of the domestic cars jumped by 90 units to 13,68,76 from 13, 67,86 for the month of September. These figures, however, does not include the sales of Omni, Super Carry, and Eco Vans.
The carmaker had seen a decline in the sale of its cars due to erratic monsoon weather including the floods in the state of Kerala, along with a rising demand for cars. Kerala is an important state for Maruti Suzuki as the state contributes to almost 8% of the carmaker’s retail sales.
The carmaker is expected to improve upon its sales in the coming months due to the onset of the festive season and is hopeful of sales get into double digit which would help them maintain their status as the number one carmakers in India.
1 OCtober 2018
The Global NCAP World Congress is being held in the country for the first time ever by the Global New Car Assessment Programme (GNCAP), which is a UK-based charity, in partnership with the IRTE between September 26 and 29. The GNCAP launched the ‘Stop the Crash’ during the event in an effort to improve the safety of cars in India.
At the launch of the event, demonstrations were organised on how safety systems such as the Autonomous Emergency Braking (AEB), Electronic Stability Control (ESC), and Anti-Lock Braking System (ABS) reduced the chances of mishaps and accidents occurring.
Mr. David Ward, who is the Secretary General of the Global NCAP, said that almost 20% of the vehicles produced globally are sub-standard and get a zero rating on the NCAP’s rating system. One of the primary reasons why these vehicles get a poor rating is due to the absence of the ABS.
That being said, in India, most cars are offered with dual airbags and ABS, thus implying that the necessary safety systems are offered as a standard. He added that by the year 2020, all new four-wheelers will be required to have autonomous emergency braking, ABS, and ESC in all countries across the world.
28 September 2018
The Government of India will be permitting the import and sale of passenger vehicles, without these vehicles having to be homologated in the country. This move is expected give a wider choice to prospective vehicle buyers and will also bring these cars to the Indian market sooner.
However, there are certain restrictions that are applicable to this move such as only right-hand-drive motor vehicles can be imported to India and only vehicles that are compliant with the ECE, EEC, Japanese regulations are permitted to be imported. Also, in an effort to protect manufacturing operations within the country, only 2,500 motor vehicles per company will be allowed on an annual basis.
Auto companies will also be given the option to import Completely Knocked Down (CKD) or Completely Built Up (CBU) models. Various car manufacturing companies like Lexus and Toyota have welcomed this move.
27 September 2018
The IRDAI, a couple of days back, sent out a circular that stated that car insurance policies will have extended sum insured amounts under the Compulsory Personal Accident (CPA) cover. Under the Motor Vehicles Act, 1988, all vehicle owners are required to possess at least a third-party liability cover. The minimum personal accident coverage that was mandated for car insurance earlier was Rs.2 lakh. The minimum sum insured for the same cover has now been boosted to Rs.15 lakh and the premium that is payable towards the said cover is Rs.750 as against Rs.100 paid earlier. The personal accident cover can be offered in both, third-party liability as well as comprehensive, type of plans. This directive was issued in response to the Madras High Court ruling passed in October 2017. Prior to this instruction, policyholders would have to choose a rider to enhance their sum insured in case they wanted extended coverage. However, with the implementation of the new regulation, policyholders can enjoy benefits up to Rs.15 lakh. The sum insured amount will be increased for existing as well as new policies. Insurance companies, as per the File and Use guidelines, have time until October 25 to file the products. After the increase in sum insured, existing policyholders will have to pay an additional premium at the time of renewal.
26 September 2018
Clamping on down on uninsured vehicles in the country, the Supreme Court has now issued a mandate that will force uninsured vehicle owners to make a compensation to the third party following an accident within 3 months or they could risk losing their vehicle. The directive of the Supreme Court comes a month after they passed the mandate to make long-term third party insurance for both four-wheelers and two-wheelers mandatory for all vehicles plying on the roads of India. Now, four-wheelers will be insured with the third party liability for a tenure of 3 years and two-wheelers will be insured for a span of 5 years. The directive of the Supreme Court was passed as more than 60% of the vehicles on the roads of India are uninsured and do not even have the third-party liability insurance which was made mandatory as per the Motor Vehicles Act, 1988. According to the Supreme Court, as reported by ET, in situations where there is no insurance cover for a vehicle, the owner should be directed to offer security or deposit an amount, adequate to satisfy the award that may be ultimately passed, as a condition precedent for release of the seized vehicle involved in the accident. If such security or cash deposit is not made, within a period of three months, appropriate steps may be taken for disposal of the vehicle and hold the sale proceeds in deposit until the claim case is disposed of.
24 September 2018
The Supreme Court of India has passed an order that all union territories and states will need auction any uninsured vehicle that is involved in a road accident to compensate the victims of the accident. This rule will apply to all uninsured vehicles and vehicles with expired insurance policies.
Thus, as a result, all state governments and union territories have been instructed to implement the order passed by the SC within 12 weeks. Post implementation of this rule, an uninsured vehicle that is involved in an accident will be seized by the state government authorities and the owner of the concerned vehicle will be offered a three-month window to pay compensation to the third party for the damages or loss suffered by the latter.
If the vehicle owner does not pay the compensation, the concerned individual’s vehicle will be auctioned. The proceedings from the auction will then be used to compensate the third party. The Supreme Court has passed this order in an effort to ensure that families of victims involved in road accidents don’t suffer as a result of another vehicle not having insurance.
To compete with a lot of car manufacturers that have rolled out attractive cash discounts, free or discounted insurance premiums, and free accessories to lure customers into getting their hands on their dream car in the month of August, Datsun rolled out attractive offers for its latest Redi-go model. The company rolled out free insurance up to Rs.14,000 with free roadside assistance and towing facilities and free pickup and drop within city limits. For corporate employees, the car manufacturer is offering a cash discount of Rs.5,000 and for government employees the cash discount is the customer purchases the car in the month of September is Rs.2,000. For customers hailing from Maharashtra and Goa, the car manufacturer has offered a cash discount up to Rs.10,000 if they make a booking for the car on or before 20 September, 2018. However, with the latest mandate by the Supreme court regarding the long-term third-party car insurance, car owners in the country will have to shell out a little more if they purchase a car after 1 September 2018. The long-term third party insurance for cars that will come for a tenure of 3 years, will make the overall cost of cars in India higher and the rates as of now are subject to change. That said, the plus point is that car owners will now be insured for a longer tenure and will not have to renew their motor insurance policy every year.
17 September 2018
Companies all over the world are using artificial intelligence in various spheres. Companies like Uber and Apple are working on driverless cars that do not require human intervention for driving. The advantages of self-driven cars are many. Since all cars will be based on a single algorithm, the chances of miscommunication between the cars are low and hence the rate of car accidents will drop. Also, new traffic rules can be fed and implemented quicker with such cars. Further, it will reduce the cost of taxis as they will be automatic and won’t be driven by humans anymore.
The downside of driverless cars, however, is that in case there is an accident, the authorities and insurance companies would not know who to hold responsible for the mishap. Also, the rise in driverless cars will cause a rapid decline in taxis and hence a major drop in employment opportunities. Unemployment will then become a crisis for countries, especially India, Pakistan, Bangladesh, and African countries, to handle. Further, it will be difficult to embed an algorithm in the car to think morally when faced with a crisis situation on the road. The car may not be able to prioritise who or what to save first. And most of all, driverless cars will become vulnerable to hackers who can easily insert viruses into the system. Therefore, driverless cars will become a reality only once all such issues are resolved.
14 November 2018
The Insurance Regulatory and Development Authority of India (IRDAI) is looking to put forward its final report on considering telematic in motor insurance by the end of the current financial year.
The chairman of the insurance regulatory body, Subhash C Khuntia said the regulatory body is studying the report on telematics which will motivate people who have shown good behaviour while driving. The motor insurance in India is currently based on parameters such as the vehicle model, its geographical use, its capacity etc. when it must be based on parameters such as how frequently the vehicle is driven, the upkeep of the vehicle, the quality of the road on which the vehicle is driven, the distance covered by the vehicle etc. These factors will allow the insurance company to price the insurance policy in a more accurate manner.
A telematic box is fitted to the car which provides the insurance company with vital information on how the car is driven, the distance covered by the car, which allows the insurance company to determine the price of the insurance policy in a more accurate manner.
12 September 2018
People of Andhra Pradesh have shown a mixed response to the mandate passed by the Road and Transport Authority (RTA) which according to a decision passed by the Supreme Court of India has passed a rule that any person purchasing a vehicle after September 1 will have to avail a third-party insurance plan for themselves. However, due to poor communication between the car dealer and people, many customers have decided not to purchase a vehicle since the premiums have been hiked depending upon the cc of the vehicle they intend to buy.
The insurance companies till August 31 would provide a comprehensive insurance cover to its customers, where they would receive a cover amount in case their vehicle got lost, stolen, or damaged. However, post the new mandate, the customers will be provided with a third-party insurance cover, where they will be provided cover only if their vehicle gets lost, or they are involved in the accident of another vehicle.
A person who has purchased a new car and a new bike respectively will have to avail a third-party insurance cover for a period of three years and five years respectively. The new premium rates post the ruling has been hiked to Rs.24,000 for cars and Rs.13,000 for bikes on a yearly basis which many people feel will be a herculean task to fulfill.
11 September 2018
Maruti Suzuki continues to remain the market leader in Indian car industry by outselling major players in the market. The company’s NEXA range of vehicles have outsold the vehicles manufactured by major manufacturers like Tata, Mahindra, Honda, etc. in terms of the number of units sold. The NEXA range includes top models like Ignis, Baleno, S-Cross, and Ciaz.
For the month of August, Maruti sold 28,672 units in the NEXA series. For the same period, major brands like Tata Motors, Mahindra, and Honda have sold 18,420 units, 17,368 units, and 17,020 units, respectively. The company’s Arena lineup of vehicles have sold 1.17 lakh units for the month of August.
Maruti established the NEXA range mainly to distinguish itself from the ‘budget carmaker’ tag. This premium range of vehicles came into the market with the release of S-Cross. This was followed by other models like Baleno, Ignis, and Ciaz. Under this premium range, Maruti offers better ambience and higher service quality compared to other models in the lineup.
7 September 2018
The Insurance Regulatory and Development Authority of India (IRDAI), in a recent circular, asked all motor insurance providers in the country to start offering long-term third-party insurance policies for two-wheelers and cars, starting from 1 September 2018.
Thus, customers will now have the option of purchasing a long-term third-party insurance policy for a period of 3 years (for cars) or 5 years (for two-wheelers), a bundled motor insurance policy that comprises a 1-year own damage cover and 3 year/5 year third-party liability insurance cover, or a long-term comprehensive motor insurance policy, based on their coverage needs.
To this end, DHFL General Insurance’s COCO has launched a campaign to create more awareness among policy buyers about this mandate. COCO, as part of this campaign, will reach out to new vehicle buyers by way of infographics, articles, social media posts, and videos, urging them to be aware of their options before purchasing a motor insurance policy for their vehicles. The campaign, which is called “Care More” aims to help new vehicle buyers make an informed choice when purchasing motor insurance.
5 September 2018
Honda has announced the start of its fest called “The Great Honda Fest”, where the customer will not only enjoy discounts and other offers on the purchase of a Honda car for the festive season but also stand the chance to win a fully-paid trip to Paris and London.
The fest which will be held across all Honda Dealership from September 1,2018 - November 7, 2018, has asked the customers to purchase cars during this period citing it to be the best period to buy a car as the car giant aims to add to customer satisfaction this festive season.
A customer who wishes to take part in “The Great Honda Fest” will have to register at the HCIL website within a stipulated period post the purchasing of a Honda car. Lucky winners will be chosen through a random draw for each month the fest is valid and will be eligible for an array of prizes. An extremely lucky customer also stands the chance of winning an all expense trip to Paris and London. The customers who will purchase a car between September 1, 2018 - November 7, 2018, and receives their vehicle by November 30, 2018, are eligible to take part in this fest.
Honda Cars have done well in terms of sales thanks to its WR-V model which was a huge success last year followed by its all-new Amaze- concept which has been a success this year. Amaze has already broken into the list of top 10 cars sold by volume for this year.
4 September 2018
Given that the festive season is right around the corner in India, car manufactures have scheduled the launch of a number of much-awaited car, MPV, and SUV models around this time. Listed below are a few of the many cars and MPVs that are scheduled to be launched in the next few months.
31 August 2018
India’s insurance regulatory body the Insurance Regulatory and Development Authority of India (IRDAI) has asked insurance companies to provide longer tenure for third party car and two-wheeler insurance. This is with regard to a Supreme Court order about providing longer tenure for motor vehicle insurance.
For vehicle insurance that will be issued from September 1 onwards, IRDAI has made it mandatory to provide for a longer tenure. For two wheelers, there is a minimum tenure of 5 years whereas for cars it is 3 years. Specific guidelines have been issued by the company regarding the same, and it will come into effect soon.
As per the new norms issued by IRDAI, longer tenure for motor insurance will come into effect from September 1. Companies can collect premiums for the entire tenure during the sale of the policy. Insurers cannot report the 5-year and 3-year premiums in their total income for the year. However, they can use the entire premium making their investments.
30 August 2018
The month of September will see the premium rates for new cars and bikes double after the Supreme Court of India made it mandatory for the insurance companies to sell only third party three-years and five-years policy on the purchasing of new cars and bikes respectively.
Any person purchasing a new vehicle after September 1 will have to pay premiums which are expected to rise 2.45- 5.61 times and 2.86-3.08 times for new bikes and cars respectively.
The new rates will be applicable for all policies from September 1, 2018 to March 31, 2019.
This particular rule is not applicable for existing vehicle owners since they either have a one-year policy or haven’t yet renewed their policy. Since it becomes difficult for the insurance company to track whether a vehicle owner has an insurance policy after the end of the first year, the apex court of India has passed the mandate to ensure that at least all the new vehicles are insured.
The policy cannot be canceled neither by the insurer nor by the insured until and unless the latter has sold or transferred his/her vehicle or owns a double policy.
29 August 2018
An extremely rare model 1962 Ferrari 250 GTO was just auctioned off for a whopping $48.4 million (about Rs.340 crore) in what is being considered as the highest ever price receive for a car. This makes it the most expensive car the world has ever seen. This world record on car auction was set at RM Sotheby’s annual Monterey collector car sale.
Ferrari 250 GTO is a limited-edition model launched in the year 1962. Only 36 units of this model was manufactured by the company. One of the astonishing facts about this model is that all the 36 cars manufactured by the company are still up and running in different parts of the world. This is an exquisite model that has won the hearts of many car collectors across the world.
29 August 2018
Due to the increasing concern surrounding women’s safety at night, motor insurance companies have started to provide additional coverage to female drivers. Thus, insurance providers are now offering their female customers benefits such as roadside assistance during the night, emergency cab service, a night’s accommodation at a nearby hotel, and emergency transport to a medical centre in case of untimely event.
While certain insurance companies offer these additional benefits for an additional payment, several other insurance firms including Bajaj Allianz General Insurance and ICICI Lombard have started to offer these services free-of-cost to female drivers.
28 August 2018
Car manufacturer Nissan is offering discounts up to Rs.85,000 for some of its cars. This offer includes a cash discount, free insurance, offers under the ‘Pillars of India, program, and car loans at attractive interest rates. The offer, however, is only applicable on select car models – SUV Terrano, Sunny, Micra Active, and Micra
For the Nissan Sunny, customers will receive a discount up to Rs.45,000 that includes an insurance cover of Rs.35,000. Under the ‘Pillars of India’ program, government employees can receive a special discount of Rs.7,000.
For the Nissan Terrano, customers can get a discount of up Rs.85,000. This discount also includes a free insurance cover of Rs.45,000. Government employees can avail a discount of Rs.30,000 when purchasing this model.
For the Nissan Micra Active, customers are eligible to receive a discount of Rs.35,000 which includes insurance worth Rs.20,000. Government employees are eligible to receive a special discount of Rs.5,000.
Individuals who purchase the Nissan Micra can receive a discount of Rs.42,500 which includes an insurance cover of Rs,25,000. Government employees are eligible to receive a cash discount of Rs.5,000 when purchasing this car.
Customers who apply for car loans for any of these models through Nissan Finance will be charged an interest rate of only 7.99%.
27 August 2018
For those who wish to buy a car this month, a multitude of car manufacturers are rolling out a number of offers and inclusive is car manufacturer Honda. In a statement from the car manufacturer, they are offering offers on its models - City, Brio, BR-V, CR-V and the WR-V. For the Brio, the car manufacturer is offering an attractive ex-showroom price of Rs.4.73 lakh and a free one-year auto insurance. Running on a 1.2 liter engine, the car boasts of 87 bhp of power and 109 Nm of torque. For the WR-V model, Honda is offering a 50% discount on a one-year auto insurance plan and an exchange bonus of the policy worth Rs.20,000. The WR-V is a 6-speed manual and has 99 bhp of power and 200 Nm of Torque. For the City model, the car manufacturer is offering a complimentary one-year free policy and an exchange bonus of Rs.20,000. Powered by 1.5 liter engine, the sedan is run on a 1.5-litre petrol producing 117.3 bhp-145 Nm and a 1.5-litre diesel engine. For the BR-V model, the car manufacturer here too is offering a 1 year free insurance policy and an exchange bonus of Rs.50,000. It also is offering free car accessories worth Rs.16,000. Lastly, for the CR-V model, Honda is offering a cash discount of Rs.1.5 lakh and the car is powered by 187 bhp of power along with 226 Nm of torque.
24 August 2018
Insurance companies made it known that claims registered in the flood-affected regions of Kerala and Karnataka will be processed on high priority. In addition to claims being settled as soon as possible, insurance companies have reassured the people that they will be lenient when it comes to late registration of claims in these areas. The head of products of SBI General Insurance Co., Puneet Sahni, said that claims typically have to be registered within 7-14 days but insurers will exercise leniency in this regard due to the current situation. Further, insurance companies have created war-rooms to help people with claims, tow-away services for vehicle owners, and road-side assistance for bike riders. Insurance companies, however, have asked motor insurance policyholders not to raise claims unless absolutely necessary as they will lose the advantage of the no-claim bonus. Insurance companies provide a 20-50% discount on the renewal premium if a policyholder has made no claim in an entire year.
23 August 2018
For those who wish to buy a car from popular car manufacturer Renault, doing so in the month of August might be beneficial. In a statement released by the car manufacturer, they will be offering deals up to Rs.80,000 for the Kwid, Duster and Lodger and the Captur models for customers. The benefits for such cars depending on the variant will increase to Rs.2 lakh and an insurance policy up to Rs.1 lakh will be up for grabs. For the Kwid, the company is offering a 4 year warranty, 2 years or 50,000 kms and an additional 2 years or 50,000 kms whichever is sooner. Customers can also avail an insurance policy up to Rs.1 lakh through Renault Assurance and free accessories worth Rs.3,500. For the Duster models, customers can get benefits up to Rs.80,000 and are eligible for a corporate bonus up to Rs.5,000. For the Captur model, customers can avail benefits up to Rs.2 lakh but the offer is valid till 31 August 2018. Lastly, for the Lodger variant, customers can avail benefits up to Rs.30,000 and a corporate bonus of Rs.5,000 for those from listed companies.
21 August 2018
The Insurance Regulatory and Development Authority of India (IRDAI) has recently issued certain guidelines regarding the settlement of insurance claims for victims of the Kerala floods. The insurance regulator has asked all insurance firms to streamline their claim processes in order to ensure that the affected population does not face any further hardships.
Thus, insurance companies have been instructed to initiate the required steps to register and settle claims in a timely manner. The IRDAI has also asked all insurance providers to appoint a Nodal Officer, who will be responsible for the co-ordination and settlement of all claims that are raised by individuals residing in Kerala.
Further, the insurance regulator has asked all non-life insurance firms to submit data related to insurance claims in Kerala on a daily basis in order to gauge the severity of the loss.
20 August 2018
In a recent ruling, it has been made clear that all non-life insurance companies will follow standard parameters to ascertain the insured value of a vehicle. A car of a certain make and model will have the same insured declared value (IDV) across all insurers. Therefore, prospective policyholders need not look at the IDV as a factor to compare insurance companies but only the premium amount payable. This regulation is expected to come into effect from 1 October 2018. The Secretary-General of the General Insurance Council, R. Chandrasekaran, stated that at the most there can be a 5% variation in the IDV between insurance companies.
A standard IDV will mean that the sum insured for a particular car model will be the same and the coverage for theft and damages offered by insurance companies will be the same. A common IDV will not only help the customer but also the insurance industry. Earlier, a policyholder who chooses a low IDV would most likely been given a low IDV for his/her car. The standard for IDV will eliminate such loopholes. Also, it will do away with the competition that the IDV creates in the industry. Insurance companies will now offer premiums based on the benefits and add-ons chosen by the policyholder.
17 August 2018
Many European carmakers follow the modular platform method to cut down costs. Ford, too, has taken up this cost-effective way to build its products. Initially, the company had 30 modular platforms but gradually brought it down to 9. Currently, Ford will further reduce the number of platforms to 5. The largest platform among the five will be large pickup trucks like full-size SUVs and the F150. The front-wheel or all-wheel cars will come under the crossover platform. The existing platform with Ford Mustang will be the third platform with RWD SUVs and will have a rear wheel and a front engine set up. The fourth and fifth platforms should be commercial vehicles/people movers and electric cars respectively.
Ford has set a higher preference for SUVs than Sedans and has hence done away with sedans. The 5 new platforms will be developed slowly. The development costs, costs for assembly lines and costs for preparing production will save as much as Rs.1.7 lakh crore for the company. It will also reduce the lead time to produce new designs by 20 per cent. Therefore the company will be flexible to make changes as per the market dynamics.
14 August 2018
General insurance firms are expected to move the Supreme Court within the coming two months against the insurance regulator’s mandatory PUC certificate order for renewal of third-party motor insurance covers.
Representatives from certain insurance companies have said that making the PUC certificate mandatory could lead to a drop in motor insurance policy renewals. In July 2018, the Insurance Regulatory and Development Authority of India (IRDAI) made it mandatory for all motor insurance policy buyers to present a valid PUC certificate while getting their policy renewed. Insurance companies were instructed to not renew motor insurance policies without PUC certificates.
13 August 2018
In a paper title ‘Reality Check’, the Insurance Institute for Highway Safety has issued a safety warning for cars that feature electronic safety systems. According to the report, cars that have electronic driver assist systems may not see vehicle stopped in front of them and can lead to crash if one is not paying attention.
These tests were conducted on safety systems from various vehicles including Tesla, Mercedes, BMW, and Volvo. The safety warning was issued after testing these systems on tracks as well as public roads.
The research officer noted that vehicles featuring semi-automated systems could enrisk passengers who rely on them excessively. Despite issuing a caution that these systems could fail you, the report also noted that these systems could save lives under many circumstances.
10 August 2018
A few car dealers in the industry currently offer attractive discounts in the form of cash discounts, exchange bonuses, and free insurance policies to individuals who purchase cars in the month of August 2018. Ahead of the Independence Day celebrations, Mahindra, Ford, Honda, Hyundai, and Maruti Suzuki car dealers have decided to offer discounts for the benefit of their customers. Under Mahindra, a few of the models for which cash discounts and exchange bonuses have been offered are Scorpio, XUV 500, TUV 300, and Bolero. Ford, on the other hand, offers discounts on Aspire, Figo, EcoSport, and Endeavour. Hyundai dealers offer cash discounts on Xcent, Eon, and Grand i10; and exchange bonuses on Verna, Elantra, and Tucson. Elantra and Tucson also have the free insurance offer. Maruti Suzuki plans to provide discounts on select models like Alto 800, WagonR, Ciaz, among others. It offers as much as Rs.1 lakh as a cash discount and Rs.95,000 as the exchange bonus on WagonR. Honda offers a whopping Rs.1 lakh as a cash discount on its popular model BR-V. Honda car deals also have certain offers on City, WR-V, and Brio.
9 August 2018
With Independence Day around the corner, customers enjoy discounts on various products in the market. Many car companies - Maruti Suzuki, Mahindra, Nissan, Renault, Hyundai, Honda and Ford currently offer exciting discounts on various models designed by them. Maruti Suzuki offers discounts for the highest number of models i.e. for around 15 car models. Maruti Suzuki, Mahindra, Hyundai, and Ford offer cash discounts as well as exchange bonuses. Apart from cash discounts and exchange bonuses, Hyundai also offers insurance coverage for one year. Nissan/Datsun, on the other hand, offers to provide insurance for the first year, cash discounts, 5-year warranty, or special discounts for government employees based on the model chosen by the customer. Along with cash discounts, Renault offers a 1-year insurance and a 4-year warranty on select models.
8 August 2018
Automobile major Honda has launched a special edition model of WR-V crossover that comes with some added features for safety and comfort. The Honda WR-V Alive Edition is built on the base S trim, and it comes packed with rear parking sensor, an additional rear camera, and a free subscription to Honda Connect for one month.
Other additional features in the Alive Edition include 16-inch diamond cut alloy wheels, steering wheel cover, and a seat cover that features the special edition logo. This edition of the vehicle also comes with a new colour called Radiant Red.
In terms of other specifications, there is not much change in this vehicle. Customers have the option of choosing between a 1,199cc petrol engine that delivers an output 90hp and a 1,498cc diesel engine that delivers an output of 100hp. The petrol version comes with a 5-speed manual gearbox, while the diesel version comes with a 6-speed manual gearbox.
The petrol version of the car comes with a price tag of Rs.8.02 lakh, and the diesel version is priced Rs.9.11 lakh.
7 August 2018
Industry sources have reported that Suzuki Motors will be supplying between 20,000 and 25,000 of its Baleno premium hatchbacks to Toyota Motor Corp every year. Thus, Maruti Suzuki’s Baleno will become the first cross-badged vehicle of the two car manufacturers. Toyota will start selling the Baleno through its own dealerships from the next financial year.
The Baleno, which is produced in Suzuki’s Gujarat factory at present, will undergo certain changes in its interiors and exteriors before being sold through Toyota’s dealerships. Toyota’s sourcing of Maruti Suzuki’s Baleno follows an agreement that was made between Suzuki and Toyota earlier this year for the two car manufacturers to sell each other’s motor vehicles in India. Suzuki will also be supplying its sport-utility vehicle Vitara Brezza to Toyota as part of this agreement. In turn, Toyota will supply its Corolla to Maruti Suzuki.
6 August 2018
Oriental Insurance, which is a leading public-sector non-life insurance firm in India, has announced that it is planning to ramp up its crop insurance business from Rs.500 crore to Rs.1,300 crore in the current financial year.
Mr. Girija Kumar, the CMD of Oriental Insurance, also announced that the company is looking to increase its online sales to a sum between Rs.1,600 crore and Rs.1,700 crore this financial year. Oriental Insurance had earned Rs.400 crore as revenue through online sales in the first quarter of the current financial year. He also mentioned motor, retail, and crop insurance will be the main growth drivers for the company this fiscal.
3 August 2018
Mahindra’s new multi-purpose vehicle codenamed U321 is officially named “Marazzo” thereby ending all speculations about the name of the vehicle. Marazzo, which means shark in Spanish, got such a name since the design of the vehicle is inspired from a shark. The new design language incorporated in this vehicle is likely to be carry forwarded to other SUVs and UVs that will be launched by Mahindra in the future.
The shape of Mahindra Marazzo mimics the body of a share in its aerodynamic design and features an aggressive face similar to that of a shark. Mahindra has revealed that the vehicle will be built on a new platform that has better refinement and space. The company will use its manufacturing facility in Nasik to manufacture Mahindra Marazzo.
Mahindra Marazzo will get a premium position ahead of the company’s current flagship model XUV500. Once the vehicle is launched, it is expected to be launched at a price of Rs.13 lakh (ex-showroom). This vehicle is a result of collaboration between Mahindra Research Valley located in Chennai and the Mahindra North America Technical Centre.
2 August 2018
While a third-party motor insurance has been made mandatory by the Government of India as per the Motor Vehicles Act, 1988, according to a report by the Ministry of Transport and Highways, 66% of the vehicles plying on the roads of India are uninsured or in other words, do not have a valid motor Insurance policy. This is mainly because vehicle owners look at a insurance policy as an added expense and fail to renew their policies in advance. To ensure that this situation is avoided, the Government of India is going to make the long-term third party liability cover mandatory. Based on the announcement of the government, as of September 1, 2018, two-wheeler vehicles have to have a minimum of a 5 year third-party liability cover and four-wheelers have to have a minimum of a 3 year third party liability cover. This is irrespective if vehicle owners have an existing policy in hand. According to Anurag Rastogi as reported by Financial Express, HDFC ERGO General Insurance, the decision by the Government is a welcome decision from the perspective of a policyholder in terms of convenience of purchase wherein the customers need not worry about renewals. Moreover, this will also help in the penetration of motor insurance in our country, as this would help reduce the number of uninsured vehicles on road, thereby ensuring fair compensation for the dependents of victims of road accidents.
31 July 2018
The Indian luxury car market has grown in leaps and bounds over the last decade, with luxury car manufacturers offering new models to keep pace with demand. According to a recent report, New Delhi topped the list of cities when it comes to the market for luxury carmakers such as BMW, Audi, and Mercedes-Benz.
The aforementioned car manufacturers saw a 20% increase in their sales in the year 2017, with around 33,500 units sold.
The list also included smaller towns like Ludhiana and Surat, which were ranked 9th and 10th respectively.
While Bengaluru was ranked third, Chennai, and Kolkata rounded up the top five. Other cities in the list include Hyderabad, Ahmedabad, and Pune.
While BMW India sold 5,171 units in the first six months of 2018, Mercedes-Benz managed to sell 8,061 units during the same period.
30 July 2018
Multi-year motor insurance for four wheelers can become a reality in the near future as the Supreme Court has directed the IRDAI to decide on making third-party motor insurance mandatory by September 1. One of the major advantages of a having a multi-year policy is the convenience of not having to renew a policy by the end of every year.
The SC Committee on Road Safety recommended that four-wheelers must have mandatory third-party insurance for a period of three and five years at the time of their sale. The report noted that only 6 crore of the 18 crore registered vehicles in the country have third-party insurance.
Third-party insurance, which is mandatory for all motor vehicles in India, is something that provides coverage for liabilities arising out of damages inflicted to a third party. IRDAI fixes the premium for this coverage every year. As of now, multi-year policies are available for up to 3 years in the case of two-wheelers.
27 July 2018
Though it is at present illegal for a private car owner to offer rides to strangers, this law might come to an end soon enough with the Government of India’s proposal. Based on what the Center has proposed, in order to reduce traffic on the road and inevitably also reduce the pollution on the roads of India, the Government of India is contemplating replicating United States and Singapore and is in the process of allowing private car owners to tie up with cab aggregators Uber and Ola to allow them to give strangers rides. However, private car owners will have to abide by the current law and offer their service on a no profit and no loss structure. Meaning that the private car owner can charge customers only for expenses to cover fuel and other facilities and cannot be for the purpose of profit. To make this a possibility, the Government of India has requested the help of the United States and Singapore to draw a blueprint of this new structure.
27 July 2018
The Supreme Court’s recent ruling stated that it will be mandatory for all bike riders to purchase five-year third-party insurance policies and for all car drivers to purchase two-year third-party insurance policies. The new rule is expected to be implemented from September 1. Certain industry reports revealed that only 45% of bike riders and 70% of car drivers hold insurance policies. The apex court passed this ruling to encourage citizens to purchase at least third-party insurance policies. The owners can further decide whether to add the own damage cover or not. Presently, buying a yearly third-party insurance policy for motor vehicles is mandatory under the Motor Vehicles Act. While insurance companies have introduced three-year bike insurance policies, car insurance policies are offered as one-year policies. With the implementation of the new plan, insurance companies will be required to design and offer new policies as well as revise their premium rates. The Insurance Regulatory Authority of India (IRDAI) had revised the premium rates on April 1. Once the Supreme Court’s order is communicated to the regulator, the premium rates are most likely to be revised again.
25 July 2018
Based on an order from the Supreme Court, the Insurance Regulatory and Development Authority of India (IRDAI) released a circular on July 6 directing general insurance companies to not renew motor insurance policies of vehicles that don’t have a valid PUC certificate.
As per the Central Motor Vehicles Rules, 1989, all vehicles are mandatorily required to have a valid PUC certificate at all times after one year from the date of registration. PUC certificates are issued by an agency that has received authorisation for the same from the state government. A PUC certificate is valid for a period of 6 months.
24 July 2018
With the monsoons battering the east coast of India, causing floods in a number of areas - forcing people out of their homes and damaging the cars, BMW are going out of their way to help the flood-affected car owners in the city of Mumbai, Maharashtra. According to the source, along with other other car manufacturing companies in the country, BMW is arranging on site technicians to repair and service cars, complimentary roadside assistance for cars with hydrostatic locks, towing facilities and other related services. According to the manufacturer’s president, Mr. Vikram Pawah, the torrential rainfall in Mumbai and surrounding areas recently is alarming due to flooding of low lying areas in the city. We stand with our customers in meeting any challenges they might have to face due to inclement weather conditions. The company has taken special steps to ensure that its customers receive prompt response to their service and insurance requirements. A special task force is monitoring the situation on a real-time basis and we are closely coordinating with our dealer partners to ensure a hassle-free service experience for our customers. Other car manufacturers such as Hyundai, Volkswagen, Maruti Suzuki and Ford have also joined suit to help flood-affected car owners and take care of their insurance claims as well.
23 July 2018
A report revealed that the growth of the general insurance companies of the private sector for FY 2017-2018 is 22% whereas the growth of general insurance companies of the public sector is 13%. The overall general insurance industry grew at 17% in FY 2018. The private insurers have a 55% share in the market. The Public Sector Undertakings (PSUs), in the year FY 2018, rationalised growth so that they reduce underwriting losses. While the losses were evident in the motor own damage segment, the public sector insurers grew in the motor third-party segment. The public sector insurers are expected to improve the pricing of the motor own damage segment so that, if not rapid growth, there are better underwritten profits.
19 July 2018
Several car manufacturers such as Honda, Hyundai, Ford, Nissan, Toyota and Maruti are offering discounts at the moment. The discounts are offered only for certain car models such as Honda Jazz, Honda WR-V, Hyundai Grand i10, Hyundai Eon, Hyundai Elite i20, Hyundai i20 Active, Ford Figo, Ford Aspire, Nissan Micra Active, Nissan Micra, Toyota Etios Liva, Maruti Ignis, and Maruti WagonR. The discounts may be restricted to only specific variants such as diesel or petrol variants. The discounts are for the overall prices and for the car insurance policies too. The discounts on the prices range from Rs.32,000 to Rs.75,000. A few manufacturers offer exchange bonuses too. Insurance policies at Re.1 worth around Rs.25,000 are also available.
18 July 2018
Owing to the fact that public sector general insurance companies are suffering losses, they are planning to increase the premium for Own Damage (OD). The public sector insurers provide discounts as high as 70% to 80% on the premium amount payable but the claims ratios are also high. Hence the profit margins are under pressure. The insurers, therefore, wish to rationalize the premium amounts payable and the discounts offered but are worried about the competition they may face from the private sector insurance companies.
The claims ratios of the public sector insurers are much higher than that of private sector insurers. For the nine-month evaluation period that ended in December 2017, the claims ratio for public sector insurance companies was 78% and that of private sector insurance companies was 61%. In the previous year, the claims ratio for public sector insurers and private sector insurers were 85% and 68% respectively. Though the premium for OD is not restricted by IRDA regulations, the public sector insurers have been offering high discounts. To tackle the problem of losses and private sector competition, public sector insurers, in the opinion of a few experts, may use analytical data such as the geographical region in which the number of claims is high to charge higher premiums, or to offer high discounts only during festivals.
16 July 2018
13 July 2018
Tata Motors Limited is offering a host of discounts and offers on its top-selling cars this season. Customers who purchase the Nano, Tigor, Zest, Hexa, and Safari Storme can avail insurance for a year at Re.1. Further, the car manufacturer is also offering discounts of up to Rs.30,000 and an exchange bonus of up to Rs.15,000 on certain select models.
Tata Motors is expected to launch a new 5-seater SUV H5X called the ‘Harrier’ by May 2019. The SUV will be offered in both 5-seater and 7-seater variants. The 5-seater variant is expected to cost around Rs.8-12 lakh and the 7-seater is expected to cost between Rs.12-17 lakh.
12 July 2018
The Insurance Regulatory and Development Authority of India (IRDAI) has said that Pollution under Control (PUC) certificate will be a mandatory document which a car owner will have to furnish while renewing his/her motor insurance.
The Supreme Court in 2017 had directed insurance companies not to insure a vehicle if the owner fails to produce PUC certificate during the renewal of the policy.
The insurance companies where however awaiting further instructions from IRDAI. The regulatory body has now directed the insurers not to allow insurance to the car owners without a valid PUC certificate.
A person has to purchase a PUC certificate whose validity is for one year. After the expiry, the person will have to get a fresh test done before getting issued a new PUC certificate whose validity is for six months.
11 July 2018
The top 3 automatic cars that are offered for under Rs.5 lakh in India currently are the Maruti Suzuki Alto K10, Renault Kwid, and the Datsun redi-GO AMT. The Maruti Suzuki Alto K10, which is one of India’s top-selling cars, offer a fuel efficiency of 24.07kmpl. The automatic variety of the car, which is offered in the VXI variant, costs around Rs.4.18 lakh.
Renault Kwid AMT has been a popular choice among consumers in the recent past. The regular variant of the car is offered at Rs.3.87 lakh, while the Avengers edition is offered at Rs.4.64 lakh. The Datsun redi-Go AMT was launched this year at a price of Rs.3.80 lakh. The AMT variant of the redi-Go is around Rs.22,000 more expensive than the standard variant.
10 July 2018
The Volkswagen Beetle, which has been on sale since the late 1940s, is all set to be the first car from the company to have an electric variant. Certain reports on the internet suggest that the car will be a four-door hatchback and will have the motor in the rear of the car. This car is expected to be one of the 50 electric vehicles that the company has promised to launch by the year 2025. It is also believed that Volkswagen Beetle’s rival Mini will also reveal an electric variant in 2019.
10 July 2018
The Supreme Court has recently given a ruling that salary certificate need not be the only document used to assess the overall income of a person when it comes to providing compensation for the loss of life. It mentioned that the income declared in the deceased’s tax assessment can be taken into considered before arriving at a fair compensation amount.
In the case of United India Insurance Co Ltd. vs. Indiro Devi, the Supreme Court gave a ruling that the income of the deceased can be taken from the income tax assessment in order to come up with a fair assessment of insurance compensation.
The issue went to court after the insurance tribunal refused the acknowledge the income tax assessment of the deceased and determined the compensation based only on the salary certificate. With this ruling from the Supreme Court, the income obtained from other sources will also be taken into consideration while providing the settlement amount to dependents.
9 July 2018
Datsun, which is celebrating its fifth year of operations in the country, recently announced that it will be offering a 5-year warranty package on all of its cars. Datsun will only provide this offer on new cars. Thus, existing customers of Datsun will not be able to avail this offer.
The extended warranty offer is part of Datsun new ‘Peace of Mind’ service package which is offered for all of its cars. The package includes free insurance, 24x7 roadside assistance, offers for government and ex-government employees, free pick-up and drop facility, etc.
Datsun has been coming up with new initiatives to attract more customers. In 2017, the car manufacturer introduced 3-5 year maintenance packages for its redi-Go model to improve the appeal of the car.
6 July 2018
German carmaker Volkswagen is all set to launch two new cars in India by the year 2021 under the company’s ‘India 2.0’ initiative. It is estimated that one of the two cars will be an SUV built on the MQB-A0 platform, which is a flagship platform used by Volkswagen as well as its sister brand Skoda. Skoda has also commenced operations to launch multiple vehicles using the same platform.
The company is yet to reveal further details about the cars that are set to be launched. However, industry insiders predict that the second car could either be a new version of Volkswagen Polo or Vento.
Skoda is in the process of developing a new compact SUV with the MQB-A0-IN platform. In addition to Skoda, other top carmakers in the market including Kia, Tata, and MG Motors are also developing their own versions of compact SUVs.
Honda Cars India (HCIL) saw its car sales grow by 37.5% to 17,602 units for the month of June due to strong sales of its model Honda Amaze.
The carmaker saw a total of 12,804 units sold in June 2017 and has already exported 486 units for the month of June 2018.
Honda Amaze has already received an overwhelming response from customers as HCIL has already sold 9,103 units of Honda Amaze in June 2018 and has received over 26,000 bookings, which has played a major role in the carmaker’s growth in sales.
4 July 2018
July 2018 will see the launch of four new highly anticipated cars – the Volvo XC40, Ferrari Portofino, Porsche 911 GT2 RS, and the Jeep Compass Trailhawk.
The Volvo XC40 is due for launch on July 4. Individuals who wish to purchase the vehicle can book it now by paying a sum of Rs.5 lakh. The fully loaded variant of this vehicle is expected to be priced between Rs.40 lakh and Rs.45 lakh. The Ferrari Portofino, a sports car that can clock over 320 kmph, is also expected to launch in the month of July 2018. However, the car manufacturer has not yet announced the official launch date.
The Porsche 911 GT2 RS is likely to launch in July 2018. It is expected that the car will be priced upward of Rs.4 crore. The Jeep Compass Trailhawk, which is being offered with a 2-litre diesel motor, low-range gearbox, etc., is also likely to be launched this month.
3 July 2018
In what looks to be a promising year for Tata Motors, based on their year-on-year sales, the company has recorded a 54% increase in June 2018 as compared to June 2017. According to the vehicle manufacturer, the biggest proportion of sales were of commercial vehicles. Tata Motors managed 56,773 sales in June 2018 as compared to 36,836 sales in June 2017. The sale of commercial vehicles increased by 50% to 38,560 units in June 2018 from 25,660 sales in June 2017. In accordance, the passenger sector increased by 63% in June 2018 as compared to June 2017, to 18,312 units. Overall, Tata Motors have significantly increased their sales in FY 2018-2019. With a total of 1,64,579 units being sold since april 2018, the growth has been exponential by 64%. According to Girish Wagh, President, Commercial Vehicle Business Unit, Tata Motors, who spoke to NDTV, Tata Motors are pleased to end the first quarter of FY19 with a robust growth in our sales performance, crossing the 1 lakh sales mark with 71% growth. In June 2018, our commercial vehicles domestic business reported an increase of 50% on the back of the economy continuing to show an uptick due to the improved industrial activity, robust private consumption and government spending on infrastructure.
2 July 2018
The top 3 automatic, petrol hatchbacks that are currently available in the country for a sum of Rs.8 lakh are the Maruti Suzuki Baleno, Hyundai i20, and Honda Jazz.
Maruti Suzuki Baleno is offered in 3 variants – 1.2 Delta AT, 1.2 Zeta AT, and the 1.2 Alpha AT. The variants are offered at prices of Rs.7.21 lakh, Rs.7.81 lakh, and Rs.8.52 lakh, respectively. This car offers a truly hassle-free driving experience to the user.
The Hyundai i20 is another top-performer in the category. The car is fitted with a 1.2 litre petrol engine-CVT combo. The highlight of this vehicle is its high quality cabin. It is offered in two variants – 1.2 AT Magna Executive and 1.2 AT Asta. The 1.2 AT Magna Executive is offered at Rs.7.09 lakh, while the 1.2 AT Asta is offered at Rs.8.22 lakh.
The Honda Jazz, which comes in two variants, scores high on practicality, given that it is quite large in terms of the space offered. The vehicle also offers good performance with smooth gearshifts. The S AT and V AT, the two variants, are offered at Rs.7.78 lakh and Rs.8.55 lakh, respectively.
29 June 2018
General insurance companies in India are expecting third-party insurance claims to drop if the Parliament passes the Motor Vehicles Amendment Bill. The bill will allow insurance companies to reject motor insurance claims made 6 months after the occurrence of the event.
Delay in filing claims is a one of the key reasons for fraudulent claims as it usually becomes difficult for insurance companies to detect fraudulent practices in such cases. Once the bill is passed, the premium for third-party motor insurance policies may reduce as insurance companies are likely to receive lesser claims.
28 June 2018
Individuals who wish to buy a new car may not choose to do so in the month of June and would probably prefer to book a car slightly later so that they can reap benefits of the festive seasons when most car dealers offer attractive discounts. However, a few car manufacturers such as Volkswagen, Honda, Hyundai, Renault, Jaguar, and Ford offer certain discounts on select models of their companies. The discounts offered include cash benefits, exchange benefits, insurance benefits, affordable maintenance service plans, warranty extension benefits, discounts on spare parts and accessories, offers on monsoon checks, etc. Thanks to the new offers, people need not wait for the monsoon to end to purchase their dream car but can do so right away.
27 June 2018
The Insurance Regulatory and Development Authority of India (IRDAI) has asked motor insurance providers to start offering third-party motor insurance policies with policy terms of three years and five years. This directive was issued by the IRDAI after receiving the recommendation made by the Committee on Road Safety of the Supreme Court.
Currently, general insurance providers offer car insurance policies with a policy term of 1 year and two-wheeler insurance plans with a policy term of up to three years. Increasing the policy term to three or five years for third-party insurance covers will, thus, make it more convenient for policyholders since they will not have to renew the policy annually.
26 June 2018
A well-known general insurance company, ICICI Lombard has witnessed growth in its market share in all its products. Also, it has settled a good number of claims in the FY 2017-18. The market share for engineering insurance rose to 11.2%, for marine insurance rose to 12.7%, for fire insurance rose to 7.8%, for liability insurance increased to 14.3%, and for travel insurance increased to 24.9%. While motor insurance contributed 39.4% to the total general insurance premium of the industry, motor own damage premium was up to 17.5% of the industry GDP income. ICICI Lombard’s share in the motor own damage segment is equal to 11.6%.
The company has also achieved a milestone in terms of the number of claims settled in the year. In FY18, the company settled 1.5 million claims. The insurer also claims to have settled 90.8% motor claims in 30 days.
25 June 2018
Datsun will be offering free insurance and cash benefits on three of its car models – the Datsun Go, redi-Go, and GO Plus – until the end of June 2018. The discounts offered by the insurer will vary based on one’s location, car model, and variant.
Government employees will be able to avail a cash discount of Rs.3,000 on purchase of any one of these models. Similarly, corporate employees will also be offered a discount by the manufacturer. Although the car manufacturer is not offering low interest rates for its cars, the company is expecting to draw customers by offering attractive discounts.
22 June 2018
With the Government of India imposing high taxes on the sale of luxury cars and the soaring prices to own a new luxury cars, according to second hand dealers, their sales have gone north. With a number of people choosing luxury brands to the normal, apparently the second hand luxury sector is increasing by 15% as every year passes. Apparently, the demand for second hand luxury vehicles has increased by three fold. According to a dealer, people are preferring brands such as Mercedes, BMW and Audi and dealers are now selling 35-40 cars a year as apart to 6-7 cars in a year. In the second hand site OLX, apparently here are about 3.8 million units on sale. Customers are choosing luxury cars second hand as they get a price discount of 50-60% off the showroom price and the cars are in pristine condition.
Start-up companies which rely on information from customers using wearable tracking devices and vehicle trackers have suffered due to lack of regulation on data protection and premium pricing.
Motor insurers currently rely on data such as vehicle capacity, total miles drove, engine displacement, vehicle’s age etc to decide the premium payable.
Insurance companies and Start-ups are currently collecting other granular information such as time taken by the driver to complete a trip, his/her driving behavior etc in order to decide on premium price and also cut down on losses.
However, rules set down by Insurance Regulatory and Development Authority (IRDA) on the pricing of different products coupled by the high cost of vehicle trackers and oversight on rules related to data protection are hindering the development of digitised insurance tools according to the experts.
20 June 2018
Car dealers of Maruti Suzuki, Honda, Mahindra, Volkswagen, Toyota, Ford, and Tata Motors are offering cash discounts, exchange bonuses, and insurance benefits to customers who wish to buy cars in the month of June 2018. Among the car companies for which cash discounts are being offered, dealers of Honda offer the highest discount of a whopping Rs.1.5 lakh for Honda CR-V. The highest exchange discount, however, is offered for the Maruti Suzuki model - Wagon R. Additionally, free insurance benefits for a period of one year is being offered for select models of a few companies like Honda and Tata Motors.
Automobile manufacturer Hyundai Motors stated that it is offering discounts on its vehicles, with the discounts valid this month. The price benefits are offered across its range, minus the new Creta.
In addition to the discounts, the company is also providing a warranty scheme which includes roadside assistance for 3 years. A few models are also being offered with free insurance, with exchange benefits in store as well.
While the company is offering a cash discount ranging between Rs.35,000 and Rs.40,000 on its Eon, Xcent, and Grandi10 range, it is providing an exchange bonus as high as Rs.50,000 on its Tucson variant.
Free insurance is being provided on the purchase of the Elantra and certain variants of the Tucson.
The South Korean auto giant is also expected to launch a new hatchback this year, with it likely to provide the entry-level car under the Santro badge.
15 June 2018
If you thought that car prices are going to hit the fan in the coming months, well, Honda’s latest announcement will make you change that thought. On the official website of the car manufacturer, they have announced that mouth watering deals will be on offer. According to them, they are offering free insurance on purchase and discounts ranging between Rs.15,000 and Rs.1.5 lakh till June 30, 2018. The offer will be applicable on their best selling variants as well. For the Honda Brio variants - MY2017 and MY2018 - they are offering insurance at Rs.1 and benefits worth up to Rs.23,000. For the Honda BR-V model, the car manufacturer is offering a cash discount of Rs.60,000 and benefits worth up to Rs.70,000 on purchase of the car in this month. For the Honda WR-V, the company is offering a 50% discount on the insurance policy and benefits up to Rs.44,000. However, the biggest attraction for the month of June is the Honda premium SUV which is offered at a discount up to Rs.1.5 lakh.
14 June 2018
New India Assurance has recently announced that it is targeting a growth of 18% in premium income this financial year. Mr. G Srinivasan, the Chairman and Managing Director of New India Assurance, announced that the company had achieved a 19% growth in premium income in the last financial year to touch a sum of Rs.26,500 crore.
The general insurance company has also said that it will surpass its target if the Ayushman Bharat scheme is implemented in the country. For the current fiscal, the insurer is looking to bring its health loss ratio down to 95 from 103, and its motor OD loss ratio down to 68 from 74.
13 June 2018
Due to the rise in third-party motor insurance premiums, it is likely that general insurance claims might witness a rise of around 230% in their motor insurance claim losses in FY19, as compared to the present loss level of around 140%.
Further, the Ministry of Road Transport and Highways has also now made it mandatory for general insurance firms to pay out a minimum sum of Rs.5 lakh to the beneficiaries of road accident victims claiming third-party insurance coverage. This is also expected to cause an increase in claim losses. Thus, the motor insurance industry in India might register a collective loss between Rs.12,000 and Rs.15,000 crore in FY19.
12 June 2018
Tata Motors is celebrating 150 years of its parent institution Tata Group’s existence by providing discounts on its various vehicles for a limited period of time.
All the passenger vehicles sold by Tata Motors including Hexa, Zest, Bolt, and Tiago are being sold at a limited period discounts. The carmaker is also providing the option of purchasing a car insurance at Re.1 along with other benefits. This is for the first time that the customers will be able to enjoy such big discounts this monsoon season. The discounts provided by Tata Motors on its various vehicles is available only till 25 June 2018.
11 June 2018
Motor insurance premiums are likely to rise next year following the government move to increase the minimum compensation for accident victims under the third-party liability insurance. Following this rule by the government, the general insurance industry is estimated to witness losses to the tune of Rs.10,000 crore to Rs.25,000 crore over the next few years.
This new rule came into effect from May 22 onwards. However, the general insurance industry is increasing its third-party liability insurance only from next year onwards. Following the implementation of this new rule, the minimum compensation for third-party death has been increased from Rs.50,000 to Rs.5 lakh. Experts in the industry believe that third-party insurance premium will increase by 20% to 30% from next year onwards.
Premiums for third-party liability insurance is determined by the Insurance Regulatory and Development Authority of India (IRDA). Various factors such as vehicle type, frequency of claims, average value of claims, etc. are considered while determining the premium amount for motor insurance.
8 June 2018
To enhance the convenience of their customers, Nissan has just launched the Nissan 1.2, the second version of its car technology app, which comes with additional 18 features as compared to the first version. Announcing the launch of the app, Nissan said that the updated version is a lot more advanced and intelligent to the previous version of the app. Nissan customers can download the app from the playstore, for android and for apple users. Once the app is downloaded, the customer has to activate it by calling the closest Nissan dealer. The Nissan 1.2 comes with features such as over acceleration alert, sharp turn alert, harsh braking alert, automated impact alert, manual SOS button, a curfew alert, tow truck alert, track and trace feature, the Geofencing feature. In addition, through the NissanConnect app, customers can connect with their family members instantly, can schedule group trips and connect with fellow drivers, and has the smart drive grand prix feature as well. To complete the convenience of the app, the NissanConnect helps drivers connect with the customer care service of Nissan, make bookings for service and has a touch button for roadside assistance in case of a mishap.
6 June 2018
India’s first automated vehicle scrapping and recycling facility, called CERO, has opened in Greater Noida. The five-acre facility has been set-up by M&M Ltd. through a joint venture with MSTC, a government-owned company. Five more such units are currently being constructed across the country, and they are expected to be operational by next year.
The facility, which can scrap and recycle about 500 units a month, is expected to reach full capacity utilisation by March 2018. CERO purchases vehicles directly from vehicle owners and at auctions. The owner, in turn, is paid a price for the scrap by CERO.
05 June 2018
With the Ministry of Road Transport and Highways making sure that citizens who drive or ride a motor vehicle making sure that it is compulsory for one to hold a third-party insurance and a fitness certificate for transport vehicles and vehicles over 15 years old, their latest directive has gone against the wishes of insurance companies. Recently, the Ministry of Road Transport and Highways in tandem with the Environment Pollution (Prevention and Control) Authority (EPCA) pushed the Supreme court to make it compulsory for vehicle owners to get a PUC (pollution under certificate) when renewing their insurance policies, a directive that was obliged by the Supreme Court. The recent announcement of the Supreme court however hasn’t been well received by General Insurance companies, who have said that it would not be possible to follow the directive and they would meet the IRDAI and the Ministry of Road Transport and Highways to discuss the drawbacks of their decision. Though the Ministry of Road Transport and Highways has heard of the opposition of General Insurance companies to the latest directive, they answered bluntly saying that the directive which has come from the Supreme Court has to be met by all insurers henceforth.
1 June 2018
An amendment made to the Motor Vehicles Act increased the minimum compensation for road accidents from Rs.50,000 to Rs.5 lakh. With the ten-fold increase in minimum compensation, the cost of motor insurance is likely to get expensive in the upcoming years. The amendment came into effect from May 22 onwards.
Though the compensation for third-party liability is all set to increase with immediate effect, general insurers are likely to charge higher premiums only from next year onwards. Considering this, it is estimated that insurance companies are all set to lose between Rs.10,000 crore to Rs.25,000 crore this year. Experts in the industry predict that insurance premiums for third-party insurance is likely to increase by about 20% to 30% from next year onwards.
It must be noted that claims for third-party liability takes longer since courts have to arrive at the compensation amount for a specific claim. Various factors such as type of vehicle, average value of claim, extent of damages, etc. are taken into account before deciding on the compensation amount following an accident.
31 May 2018
The government recently made amendments to the Motor Vehicles Act, 1988 which increased the compensation amounts payable for a third-party claim. According to the amendment, upon the death of a third-party individual, the compensation payable is Rs.5 lakh. If an accident results in permanent disability of a third-party, the formula used is Rs.5 lakh multiplied by the percentage disability according to Schedule I of the ECA (Employee’s Compensation Act). The minimum amount for permanent disability is, however, fixed at Rs.50,000. And the compensation for minor injuries is fixed at Rs.25,000. The changes have come into effect from May 22.
The changes were made after consideration of the rising costs of living. For the same reason, the government has also decided to increase the minimum compensation by 5% on a yearly basis. This regulation will come into effect on 1 January 2019. Therefore, the revised minimum compensation amount for the death of a third-party will be Rs.5.25 lakh and for permanent disability will be Rs.52,500.
30 May 2018
The Government is reportedly planning to use the services of a consultant to oversee the merger of its three state-owned insurance companies. According to a top official from a public sector insurance firm, discussions are still underway regarding the merger of the three firms and the government is likely to bring in a consultant to study the feasibility of the merger.
During the Budget Speech of 2018, Union Finance Minister Arun Jaitley announced that United India Insurance, Oriental Insurance, and National Insurance Company will be merged into one. However, it is not confirmed as to how the merger process will happen. The consultant will study these three firms and provide opinion on how to proceed with the merger.
United India Insurance is the largest of the three firms. According to the company’s CMD M N Sarma, United India wants the other two companies to merge into it since it is the largest of the three.
29 May 2018
Audi is getting ready to launch luxury electric cars (Evs), that offer top mileage, in 2020. In addition to the mileage, Audi is planning to manufacture electric cars that can cover 400 kms and above on a single charge as opposed to the existing electric vehicles launched by the Indian manufacturers, that can cover only 150 kms at the most on a single charge.
At present Audi is preparing to train its employees and dealers for the launch of its luxury electric cars. The Audi dealerships in India need to have relevant wiring and charging stations for the new EVs, hence Audi will be working on building these over 2018-20119. Audi will not be selling its EVs at all the dealerships in the country, only a selected few will get the opportunity to sell these EVs based on the charging infrastructures at the time.
Audi has already set up a task force within the firm exclusively for the EVs that are going to be launched in India. The task force is called Electrified India and it will be responsible for the launch of the EVs in India. Audi will be launching 4 variants of the EVs globally by 2020 and by 2025 various other models will be added. Audi also expects to sell close to 800,000 EV units globally in 2025.
28 May 2018
The President of BMW Group India, Vikram Pawah expects the smaller towns to play a stellar role in the growth of the car’s market.
BMW has already opened its outlets in Madurai, Ranchi, and Aurangabad and is aiming to open more in various emerging towns.
Small towns are looked as the future of the car industry and it is expected that more people from these towns will purchase the luxury car for themselves.
Pawah wants the tax to be rationalised which will play a pivotal role in the growth of the luxury car market.
BMW has already launched nine new products this year and will launch 310 GS and 310 R under its two-wheeler section in the second half of the current fiscal year.
25 May 2018
Indian carmakers Tata Motors have stopped the production of its hatchback Indica and sedan Indigo due to tight competition from its rivals and below par sales.
Tata Motors will however continue to provide the market service support to those who own these two cars.
The carmaker reported a growth of 22% selling 187,321 units last month compared to 153,151 units it sold during the same time last year.
It was due to their new models including Tiago, Hexa and Nexon that the company was able to achieve such astronomical numbers. However the sale of Indigo and Indica dipped and were insignificant.
According to a report by Society of Indian Automobile Manufacturers (SIAM), Tata Motors sold 1,756 units of Indigo and 2,583 units of Indica in FY2018. Unfortunately, there was no sale of either of these vehicles for the current fiscal year.
24 May 2018
The launch of the New Maruti Suzuki Ciaz facelift has been confirmed to be in August 2018. The highlight of the new mid-size sedan is the 1.5 L engine. The earlier model that was released in the year 2014 has a 1.4L petrol engine. This is the first modified version after its first launch. However, the company had released two variants with minor changes in the interim.
The all new Ciaz is expected to enter the market with a new face design and an update on the front grille too. There may be a few changes in the front and rear bumpers as well. The interiors are going to be enhanced for a more premium look. The SmartPlay infotainment system will continue to support Android Auto and Apple car play phone connectivity in the top variants of the new Ciaz model.
22 May 2018
The Central Government of India has recently made a proposal to install charging stations for electric vehicles in major cities and national highways across India. In cities with a population of over a million, these stations will be installed at every 3 kilometres. On national highways, charging stations will be placed at 50-kilometre intervals.
It is expected that during the next 3 years, a phase-wise construction of the infrastructure will take place. This would entail installing around 30,000 slow-charging stations and 15,000 fast-charging stations. It is likely that public-sector undertakings such as NTPC, Indian Oil, and Power Grid Corp will come onboard for the same.
21 May 2018
Volkswagen, a European car manufacturer, has taken the initiative to conduct a safety inspection for cars owing to the rising summer temperatures. The programme, named Volkswagen Holiday Campaign, offers benefits such as exclusive prices for tyres, accessories, car care products, and spare parts that are on offer. The campaign will be conducted throughout the month of May 2018.
The objective of the company is for car owners to ensure that their cars are safe before they decide to go on their summer getaways. The Director of Volkswagen Passenger Cars, Steffen Knapp, said that the mission of the company is to provide an excellent experience for the customer and enhance the relationship with the brand. Such initiatives prove that the company offers exceptional sales as well as after-sales services to its customers. The Volkswagen Holiday Campaign will be carried out in the 122 showrooms scattered in 105 Indian cities.
18 May 2018
The Maruti Dzire has yet again outsold every other car in the country in the month of April. The compact sedan has been performing well ever since it was launched in the year 2016. The second best-sold car in the same month is the Swift and the third best-sold car is the Alto. The 3rd generation Dzire shares the lightweight platform, HEARTECT, with the Swift hatchback. It also shares the gearboxes and the engines. Both the cars, together, have sold 50,000 cars making them the best-sold sedan-hatchback duo in India.
The reason for the high sales of Dzire is because of the fact that not only do family car buyers purchase the car but cab operators too, especially the ones who have tie-ups with mobile-based applications such as Ola and Uber. Three variants of the Dzire are available – out of which the 2nd generation is a cab-model and the 3rd generation was mainly manufactured for sharp looks and the experience of luxury.
17 May 2018
A series of new cars including the 2018 Honda Amaze, Toyota Yaris, 2018 Hyundai Creta, and the Ford EcoSport S, Signature editions will be launching in India over the next few days. All of these models have been highly anticipated in India, and it is expected that the launch of these cars will increase the competition in the market.
Ford India launched the EcoSport S and the Signature editions on 14 May 2018. Following this much-awaited unveiling, Hyundai will be launching its 2018 model of Creta on 15 May 2018. The next entry will be made by the 2018 Honda Amaze, which will launch in the Indian market on 16 May 2018. Lastly, the Toyota Yaris is expected to launch on 18 May 2018.
16 May 2018
BMW is getting ready to launch M2 in India soon. M2 is BMW’s smallest 'M Car'. According to CarandBike, the M2 will be launched in India in a few months time.
The BMW M2 also known as M2 Competition will only be available in ‘Competition package' which offers a wide range of styling upgrades for the car in addition to the figures for enhanced performance. BMW M2’s top speed will be limited to 250 km/h.
The BMW’s new M2 Competition will come with the following features:
15 May 2018
A number of popular firms have come together to create a new blockchain initiative called the Mobility Open Blockchain Initiative (MOBI). Popular firms behind MOBI include major startups, tech firms and auto manufacturers such as BMW, IBM, Ford, Bosch, Groupe Renault, General Motors, Aioi Nissay Dowa Insurance Services USA, ZF, etc. MOBI has been created by these firms to examine the use of blockchain in a new digital mobility ecosystem. The new digital mobility ecosystem would make transportation more widely accessible, more affordable and safer.
As a result of the MOBI initiative, vehicles anywhere across the globe could see the blockchain in action via the handling of collision histories, vehicle numbers, etc. to the various supply chains leading to dealerships and assembly lines.
Firms actively working with MOBI accounts for more than 70% of the global market share for vehicle production. MOBI and its partners, coming together under the initiative seek to encourage the creation of an ecosystem where consumers and businesses have the sovereignty and security over their data with respect to driving, managing ride-share, managing car-share transactions, storing vehicle identity and vehicle usage information.
Firstly MOBI and its partners will work hand-in-hand on the projects related to the following:
14 May 2018
Some of the major car manufacturers such as Hyundai, Maruti, Mahindra and Honda are offering attractives discounts on their four-wheelers in May, 2018. Though most of the vehicles are being offered with cash discounts, some are being offered with exchange bonus while others are being offered with a complimentary motor insurance.
India’s top carmakers are offering discounts up to Rs.1.40 lakh for the month of May 2018.
Hyundai, Mahindra, Honda and Maruti Suzuki are offering benefits in the form of exchange bonus, cash discounts and free insurance on its various models.
Those who are planning to buy a Hyundai car will get to enjoy discounts worth Rs.35,000 on its models like Xcent, Eon, Verna, Grand i10, Tucson, and Elantra. The exchange benefits on these vehicles are worth up to Rs.30,000.
Maruti Suzuki is also offering a discount on its various models in which the minimum is Rs.10,000 on purchasing Eeco MPV. The maximum discount of Rs.80,000 is being offered on the purchasing of the popular WagonR.
Honda is offering cash benefits on its various models including free insurance for one year if the customer purchases the WR-V, Honda City, and Brio model.
Mahindra, on the other hand, is offering a discount worth Rs.50,000 on its various models like 2017 Scorpio, XUV500, KUV100 and TUV300. Since the carmaker has launched a newer version of its XUV500 model, the older version will be cheaper by Rs.1.40 lakh.
Indian carmaker Maruti Suzuki will launch three new cars which will be Ciaz Facelift, All-new Ertiga and All-new Wagon R in the year 2018.
Ciaz will come with 4-speed torque converter gearboxes and a 1.5 K -series petrol engine. The Ertiga on the other hand will sport a new design and a 1.5 litre petrol engine inspired by the Ciaz Facelift.
The all new Wagon R will not see much change in its design and will retain its 1.5 K-series petrol engine with an output of 67 Bhp-90 Nm. The hatchback is expected to be safer than before with ABS and twin airbags across all its models. The car will have a cutting edge infotainment system including new interiors.
7 May 2018
The Supreme Court of India has asked Insurance Regulatory and Development Authority of India (IRDAI) to make it compulsory for two-wheelers and cars to have five-year insurance policy and three-year insurance policy respectively.
At the time of registration and sale of the vehicle. According to government officials, more than half of the vehicles on roads, majority of them being two-wheelers were not insured.
Driving any vehicle which has not been insured can attract a fine of Rs.1,000 and/or a three months jail term. There are very few people who get their two-wheelers insured despite some insurance companies offering the three-year insurance policy.
4 May 2018
The much awaited Toyota Yaris sedan has been priced at Rs.8.75 lakh ahead of its official launch in May 2018.
The car will be available in four variants .i.e VX, G, J and V. The token amount for the booking of the vehicle is Rs.50,000.
The Yaris will be laced with various features including piano black interior, instrument panel designed to look like a waterfall etc. The vehicle will also have tail lamps and LED line guide headlines. The sedan also has touch screen navigation and an infotainment system that can be controlled by hand gesture. A lot of care has been taken regarding the safety features as the car comes with rear and front parking sensors, seven airbags and disc brakes.
The sedan will be available in two options, manual and CVT Transmission.
2 May 2018
Ford India has replaced Hyundai Motors India as the largest exporter of passenger vehicles in India for the fiscal year 2018.
The American carmaker saw a jump of 14.31%, exporting 181,148 units in FY18 as compared to 158,469 units in the fiscal year 2017.
Ford EcoSport made the largest contribution to the carmaker’s success as Ford exported 90,599 units of the utility vehicle to the international market.
Hyundai Motors exports on the other hand dropped 7.89% exporting 153,942 in the fiscal year 2018 as compared to 167,120 units in fiscal year 2017.
Maruti Suzuki, Volkswagen and General Motors took the third, fourth and fifth spot respectively while Nissan dropped from its previously held fourth position to sixth.
30 April 2018
Bajaj Auto and Maharashtra Government have been issued a notice by the Bombay High Court with regards to the compulsory fitment of safety features on two-wheelers.
The high court has asked the two-wheeler company and the Maharashtra Government to take a stand on the matter after a plea was filed by an elderly man called Gyan Prakash asking to enforce a Supreme Court ruling.
The Supreme Court in February 2018 had asked the RTOs not to allow registering of any vehicles without proper safety features for the pillions.
Bajaj Auto and the Government of Maharashtra have been given two weeks to respond to the notice.
27 April 2018
Bajaj Pulsar has always been a win-win product for the company all throughout these years sine its launch. And now, the Bajaj Auto has come up with all new model of Bajaj Pulsar 150 with twin disc brakes.
The design and the look is of sharp edges and all new color schemes.The new model has split seats with dual disc brakes which the company vouches for and split grab rails, longer wheelbase and wider and tubeless flat tyre. The new dual disc brake technology has made the bike to emit less noise and vibration of the bike while driving and harshness because of the optimisation of the engine and chassis touch points. The vehicle is mainly targeted at the youth of the nation and the company feels that the bike will give a satisfactory riding experience on city roads and on highways. The company is also looking to implement the dual disc technology into all its models but the process in ongoing and will consume time. The 149.5cc engine is capable of producing a power of 14.85 bhp at 9000 rpm and peak torque of 12.5 Nm at 6500 rpm. The bike is priced at Rs.78,016 (ex-showroom Delhi).
24 April 2018
The all new third generation BMW X3 is finally here in all its glory. This was one of the most anticipated car from the moment it was showcased in the Auto Expo 2018 held in Delhi in the month of February.
The all new BMW X3 is available in 2 variants, Expedition and Luxury Line and both have 2 litre, 4 cylinder diesel engine. By the look of it, not much has been changed but some of the elements have been updated and give the car a new look and the company has also retained the essence of X3 with this model. But wait till you hear the upgrades in this one. What’s new in the third generation is that it gets a larger kidney grille, lower roof like and full LED lamps with a curved design. Not only this, this 55 kgs, lighter than 2nd generation BMW X3.The inside feature is all standard to BMW’s design with excellent infotainment system and other goodies. Some of that include digital instrument cluster, three-zone climate control, powered tailgate, satellite navigation, ambient lightning and touch screen for idrive system. The expedition variant is available at Rs.49.99 lakh and Luxury line is available at Rs.56.7 lakh.
24 April 2018
It’s a breakthrough for Tata Motors as Tiago, one of the most cutest car by Tata Motors has finally made it to the top 10 list of the best selling passenger cars in India. The Tiago has managed to gain 10th position in the list by selling 78,829 unis which contributes to over 38% of the total sales of Tata Motors.
But it’s one bad news for Maruti Suzuki, The Tiago has replaced Maruti Suzuki Ciaz to attain the 10th position. It may not have been a great year for Renault company, but Kwid is definitely their savior which has achieved 9th position in the list with sales of 83,089 units which contributes to almost 80% of the total sales of Renault India. For Maruti Suzuki, only Ciaz may have been the bad news, but the company is firmly sitting on all top 5 positions with Alto, Wagon R, Dezire, Swift and Baleno. It’s worth noticing that Dezire is the only sedan manufactured by Maruti Suzuki to be featured passenger selling car that made it to the list in the mid-size sedan segment. Hyundai Motor’s Elite i20, Grand i10, and Maruti Suzuki Celerio is on the 6th, 7th and 8th position respectively.
23 April 2018
Audi is one of the dream car for anyone who wants to own a luxury class car. Well your dream might just come true by probably 2021. The new entry level luxury cars will be below the range of Audi A3 which is the entry level sedan and Q3 which is the entry level SUV.
The information was confirmed by Rahil Ansari who is the Audi India head. The new project has been designed to gain more customer base in the volume segment. Globally the variants that are available below A3 and Q3 which are the entry level cars available in India, A1, S1,A1 Sportback, S1 Sportback, Audi Q2 SUV are the probable models that can come to India as entry level cars in the next 2-3 years. Audi is almost ready to launch the A1 hatchback which expected to show a small teaser in the later 2018. This new A1 might be toughest competitor for Volkswagen company’s MQB A0. On the same note, the Volkswagen company has also confirmed that this version will be available for the Indian market by 2020. Along with A1 hatchback, the sub-Audi Q2 SUV crossover will be a tough competitor for Volkswagen MQB A0. also
20 April 2018
Summer time is vacation time even for cars! For all Renault users this is a summer vacation time for your cars as well. You can get your Renault car checked for free at 269 service centres across the country from 16th April to 22nd April under the summer camp service.
Along with this offer, the company is also offering 50% discount on few listed accessories and 15% discount on spare parts, labour charges, oil and consumables. If the date of purchase of your car is about to reach the warranty expiry date, then you can now opt for Renault Secure Package which is discounted at 10%, will exceed your warranty and provide roadside assistance for free of cost. The company is also offering discount on Renault assured insurance as well. All this and more is a part of the summer camp service. It is important to keep your car in check for any problems because it can easily be fixed in camps like these which will help you prevent any sort of problem on your journey. This is also a good opportunity to get your odometer readings and register that in the manufacturer’s record which will help you when you sell your car in the second hand market.
19 April 2018
Steps have been initiated by the Motor Vehicles Department (MVD) to attach a Cochin International Airport Limited (CIAL) operated contract carriage.
MVD took the vehicle under its custody last year on December 31 after finding out that no taxes were paid on the carriage and found it to be unregistered. The owner of the vehicle had approached the high court regarding the action taken by MVD. However, on January 15, 2018, the court turned down the plea and ordered the owner to clear the pending taxes and register the vehicle.
The Joint Regional Transport Officer, Aluva, post verdict had asked the owner to produce relevant vehicle documents.
Deputy Transport Commissioner, M.P. Ajithkumar said that the documents are yet to be submitted by the owner.
MVD has asked CIAL to submit details on other 20 passengers operated vehicles as well.
18 April 2018
HDFC ERGO General Insurance Company has launched the Overnight Vehicle Repair Service where car owners can send their car for repair after regular commuting hours and receive it at their doorsteps the next morning. Currently, the service is only limited to taxis and private cars.
The service will cater to their customers on a first-come-first-serve basis as the workshops are supposed to repair limited number of vehicles on a daily basis.
Mumbai, Gurugram,Delhi, Nagpur, Surat, Pune, Ahmedabad, Jaipur, Vadodara and Chennai are some of the cities where the service has been launched. HDFC ERGO is expected to launch the Overnight Vehicle Repair Service in many more cities in the future.
17 April 2018
Renault’s best selling hatchback, the Kwid will now come with a warranty of 4 years or 1 lakh km, Renault India announced.
An extended warranty of 2 years or 50,000 km and a standard warranty of 2 years or 50,000 km will be provided.
Renault said that their warranty is more protective as they do not expect a private vehicle owner to hit 1 lakh kilometers in the first four years of buying the car.
The month of April will also see the carmaker offer different discounts on their Kwid model,including a cashback of Rs.20,000 on the 2017 Kwid and Rs.15,000 on the 2018 variant.
16 April 2018
Volkswagen India has offered new benefits and discounts for young people working in the corporate sector.
The program is an attempt by the carmaker to increase its sales and share in the market.
Steffen Knapp, Director, Volkswagen Passenger Cars said that Volkswagen has always given importance to their customers and the program will not only make their different products accessible to them but will also help them increase their reach to different customers as well.
13 April 2018
Grab your cheque books and withdraw your cash today and run to Tata Motors showroom, because the company is on a discount spree and this is the best time to buy your dream TATA car.
The Tata Motors is going a long way on the discount track because the it’s just raining offers here. The company if offering the Maximum March offer with big discounts on Tiago and Tigor. The offer is big because it’s a clearance sale for the models manufactured in 2017. But the downside to this offer is that it’s applicable only to the eastern parts of the country. All sorts of discounts are available here from cash to exchange to corporate bonus and insurance premium discounts. Also, if you want a small cute car like Nano, that is up for grabs too. Offers on Tata cars is as follows. Bolt - cash discount of Rs. 50,000 and exchange discount of Rs. 15,000, Indica - cash discount of Rs. 50,000 and exchange discount of Rs. 15,000, Indigo - cash discount of Rs. 50,000 and exchange discount of Rs. 15,000, Zest - cash discount of Rs. 45,000 and exchange discount of Rs. 15,000, Sumo - cash discount of Rs. 25,000 and exchange discount of Rs. 15,000, Safari Storme - First year insurance just at Re.1 and exchange discount of Rs. 15,000, Hexa - First year insurance just at Re.1 and exchange discount of Rs. 15,000.
12 April 2018
The vehicle subscription method for longer time is extremely popular in the western countries especially in USA. However, the tradition is not so popular in India and definitely majority of population are not familiar with it.
This way of owning a car for temporary period is gaining more and more popularity all over the world and a lot of big companies are looking at this option to expand their customer base. Riding a luxury car like BMW is a dream all of us have. So this can become true in the coming days or may in the earlier period of next year in India as well. Leasing a car or renting a car is a popular culture which has grown slowly in the country. So instead of investing a lakhs of rupees to buy a car, subscribing for few months for reasonable price while enjoying the luxury of a BMW is not a bad idea after all.
11 April 2018
The summer may be getting hotter but it could not be any better than the hottest seasonal discount that Renault is offering on all its variants. For Kwid, Duster, Lodgy and Captur seasonal discount offer comes with a free extended warranty, corporate discount and bonus, and car insurances at lower premiums. But the downside of this offer is that the discount is available only for the 2017 manufactured models except for the Kwid Superhero edition.
On Kwid, both the AMT and manual versions are up for grabs with a discount of Rs. 20,000, 2+2 year warranty for free. The MT variant gets 50% cut on the insurance cost which is anywhere between Rs.15,000 to Rs.19,500 only for a comprehensive policy. A whooping cash discount of Rs.1.25 lakhs has been offered on Lodgy and seems like the sales are hitting the sky soon. Along with this cash offer, Rs.5,000 is also offered as corporate bonus. The star seller Duster which is one of the best offering of Renault and the best off-road performer, is available for a cash discount of Rs. 40,000 and Rs.5,000 corporate bonus. But the best part is the insurance starts at just Re.1. The renault Captur which is a premium SUV offering by the company gets a whooping cash discount of Rs.1 Lakh making it the best deal of the season. The Captur is available at base price of Rs.10 lakh tO TOP end offered at Rs.14.06 lakhs. SO run now to Renault showroom to get your best deal.
10 April 2018
Four wheelers in India will soon come with a factory fitted high security registration plates which will reduce the registration cost at Regional Transport Offices (RTO).
Nitin Gadkari, the Union Minister said that the manufacturers will fit the plates while the embossing will be done later with the help of a machine.
The on road price of a car is the sum total of insurance, showroom price of the vehicle as well as the RTO fees. Under this new scheme, the automobile makers will be required to purchase the high security registration plates in bulk which will result in the overall price of the vehicles dropping.
9 April 2018
According to a survey by Velocity MR, a market research and analysis company, around 90% of car owners would choose an electric car if provided with proper infrastructure.
More than 50% people who took the survey asked for the government to take initiatives to educate people regarding electric vehicles as well as provide financial help for the same in the form of tax reduction.
Misinformation has not helped as more than 70% of people who took the survey believed that an electric car gives a maximum mileage close to 70 km per charge.
Around 90% of car owners said that they would have prefered electric cars over vehicles running on petrol and diesel if they had more options in terms of price and model of the car.
6 April 2018
Car Insurance is now cheaper effective 1st April, 2018, as announced by Insurance Regulatory and Development Authority of India (IRDAI).
Cars with engine capacity below 1000cc have benefitted the most with the third-party premium rates falling by 10% while cars with engine capacity above 1000cc have seen a drop in their rates by 8.5%.
Third-party premium rates have been slashed by 17% for taxi owners including luxury cars.
The third-party premium rates for cars with engine capacity below 1000cc was Rs.2,055 in 2017,which post the price cut in 2018 is now Rs.1,850. Similarly, owners of cars with engine capacity above 1000cc had to shell out Rs.3,132 as TP premium rates. The new premium rates revision will see them pay only Rs.2,863 now. The third-party premium rates for cars with engine capacity above 1500cc is now adjusted at Rs.7,890 as compared to Rs.8,630 last year.
5 April 2018
Liberty House Group founded by British billionaire Sanjeev Gupta are likely to start building electric cars inspired by Formula-1 in India and Australia.
Gupta, who is also the Executive Chairman of the Liberty Group is planning to add automobile to its existing group of business which ranges from banking to steel manufacturing.
Gupta’s GFG Alliance is expected to team up with Gordon Murray, formerly associated with McLaren Racing and Brabham as its technical director to build lightweight and economical electric cars.
Gupta also added that Indian auto parts maker Amtek Auto has selected GFG as its preferred bidder which will allow the latter to expand its business in India as it looks to acquire the automaker’s assets.
4 April 2018
The Insurance Regulatory and Development Authority of India (IRDAI) will keep motor insurances premium rates for third party vehicles unmodified for the financial year 2018-19. The rates will be applicable from 1 April 2018.
The TP rates on cars not exceeding 1000cc have been brought down to Rs.1,855 from Rs.2,055. The TP rate for cars ranging between 1000cc-1500cc is Rs.2,863 and Rs.7,890 for cars which are 1500cc and above.
2 April 2018
Automobile giants Toyota Motor Corp and Suzuki Motor Corp have agreed to produce cars for each other in India.
The agreement comes as Toyota aims to increase its dominance in a market otherwise ruled by Suzuki. Suzuki will provide gasoline and mild-gasoline version of its Baleno hatchback for Toyota while the latter will provide gasoline and gasoline hybrid Corolla sedans for its smaller rival. According to the deal, vehicles produced by Suzuki will be renamed and sold as Toyota cars while Toyota cars manufactured will be sold under the brand name of Suzuki.
The manufacturing of vehicles as per the deal is expected to begin sometime in mid-2019.
30 March 2018
Japanese automaker Toyota suspended their tests of its self-driving car after an Uber autonomous self-driving car killed a pedestrian in an accident recently.
Uber has already suspended their tests on its self-driving cars after one of its vehicle killed a pedestrian in Arizona, USA on Sunday.
Toyota said that they cannot speculate the cause of the incident and what effect it would have on the automobile industry. It said that they have suspended their chauffeur mode in their vehicles and will resume its testing at an appropriate time.
The Uber accident was the first of its kind and has raised concerns regarding the safety of autonomous vehicles.
29 March 2018
Kia Motors is likely to take part in bidding of supplying electric vehicles (EVs) to the government post the functioning of its plant in Anantapur District in Andhra Pradesh.
Kia Motors said that they have the necessary technology to provide EVs to the government. But a lot will depend of them in terms of infrastructure and direction given to the specification of the vehicles including installations of charging stations.
The Indian market will see the automobile company have an annual manufacturing unit of 3lakh units which the company plans to use-up in coming few years.
Kia also plans to introduce electric trains in India by 2021.
28 March 2018
ICICI has been the front runner when it comes to detecting claim manipulations by using forensics and active investigations. In an event in Bhubaneswar, the company talked about instances of claim manipulations and the consequences for doing the same. ICICI Lombard in the last three years has investigated over 30 fraudulent claims in Odisha, referring the defaulters either to the Economic Offence Wing or the crime branch. Speaking about the corrective measures to reduce such practices, they believe cross checking drivers, witnesses, and claimants through the company database would be a good move. Special Investigation Teams have been constituted by the government in Rajasthan, Delhi etc. and the process has begun to set up the same in other states as well. The company is hoping to curb the number of fraudulent claims so that genuine customers do not face the impact in the form of higher premiums.
27 March 2018
A price hike of 2% has been announced by Nissan India for all its models with effect from April 4. The hike will be applicable for Datsun, the subsidiary of Nissan, as well. The price hike is the result of the rising input costs of manufacturing.
Depending on the model and variants, Datsun will get a hike between Rs.5,000 and Rs.10,000 and Nissan is expected to get a hike between Rs.10,000 and Rs.20,000. To beat the price hike, both Nissan and Datsun are currently offering a discount scheme in March, with benefits upto Rs.72,000. They are also providing free insurance for the first year.
26 March 2018
The sixth edition of Auto Expo- 2018 recently kicked off in Raipur.
The event was held at Government Science College Ground, where the special guests for the event were Public Works Minister Shri Rajesh Murat and Forest Minister Shri Mahesh Gagra.
The event saw around 55 automobiles dealers showcase their products at the event. In addition to that, 45 companies associated with automobiles traded on finance, insurance, battery, lubricants, tyre-tubes, etc along with ten used cars and four construction equipments.
Various models from across the country walked the ramp at their main event in which the biggest attraction was the display of the fire show by various artists.
23 March 2018
Vehicle owners are going to pay lower premiums on their third-party (TP) liability for cars that do not exceed the displacement of 1000cc. The new rates will be put into effect once the latest proposal made by the Insurance Regulatory and Development Authority of India (IRDAI) is translated into revised rates from general insurers.
The regulator has proposed to decrease the premium to Rs.1,850 for 2018-19, from Rs.2,055 in 2017-18, for private cars whose displacement does not exceed 1000cc. However, the premiums for private cars with engine capacity between 1000 to 1500 cc and above 1500cc will remain unchanged.
22 March 2018
Audi has confirmed that it will increase the prices of all its vehicles. The price hike is expected to be ranging from Rs.1 lakh to Rs.9 lakh. The price rise is owing to the increase of customs duty in the budget. The customs duty on completely knocked down(CKD) imports of motor cars had increased from 10% to 15% in the budget for 2018-19. Prices across all the cars will be increased by up to 4%. The price rise will be effective from 1 April 2018.
21 March 2018
Nissan is all set to launch the new Z sports car. The car is going to replace the 370Z model of Nissan. The highlight of the new Z-car line is a four-wheel-drive Nismo version. The company is planning to reveal the styling of the new car at the 2018 Tokyo motor show in October. The production version will be showcased at the 2019 Los Angeles motor show. The model is set to run a powered-up version of the turbocharged V6 engine. The Japanese carmaker is planning for a 2021 release.
20 March 2018
The turnaround time for claim settlements has been reduced to just a day with the introduction of a new video-based car insurance claim system. The new system named Intelligent Video Streaming and Settlement (i-ViSS), introduced in India by Future Generali, allows insurance officials to examine affected vehicles through live video streaming and pass instant verdicts on the cost approval. This system will allow vehicle owners to avail claims upto Rs.50,000 in just one day.
It is a five-step process :
Future Generali says that around 70 percent of the company’s motor insurance claims are solved through an application called i-Moss. It is claimed to cut down the insurance settlement time by 50 percent.
Though it is a laudable initiative, there are certain barriers which might affect the proper implementation of i-ViSS:
If these barriers can be overshadowed, the whole claim settlement process will become smoother and faster.
19 March 2018
Tata Motors has announced that the firm would be offering discounts for five of its car models in the month of March, 2018 under the ‘Maximum March offer’. The discounts, which can go up to a maximum of Rs.1 lakh is valid only till the 31st of March 2018.The discounts are being offered on cars such as Tigor, Hexa, Tiago, Zest and the Safari Storme. The discounts are being offered to boost the firm’s sales in this financial year. Also, the new offers are set during the time of Gudi Padwa and Ugadi that will motivate the buyers to make their purchase during the time.
You will get a discount of up to Rs.28,000 on hatchback Tiago and a maximum discount of Rs.32,000 on Tigor. The firm is giving a discount of up to Rs.65,000 on Zest and Rs.1,00,000 on Hexa. Tata Safari Storme on the other hand attracts a discount of upto Rs.80,000.
In addition to all the discounts, the firm is also offering scratch and win contest prices of up to Rs.1 lakh.
16 March 2018
Future Generali India Insurance Co. Ltd. (FGII) earlier announced the launch of its new video-based motor insurance claim settlement service for customers, called the Intelligent Video Streaming and Settlement (i-ViSS). With this new service, the customer can analyse and determine the loss via video streaming of his/her vehicle, do the documentation, get instant approval on the cost and receive the payment quickly from the insurer for upto a maximum of Rs.50,000.
You need to intimate the call centre before you start using the i-ViSS. The i-ViSS is a platform for the claim surveyor and the customer to interact with each other, and determine the loss on vehicle via live video streaming on mobile. You can upload photographs and other necessary documents and come to an agreement on an amount to settle the motor insurance claim. The customer can thereafter get the vehicle repaired at the nearest garage. It is, vital that the customer send pictures of the repaired vehicle to the claims department so that future claims, if any, can be covered.
15 March 2018
Volkswagen has finally discontinued its production of the Beetle hatchback and Jetta D-Segment sedan in India. The phasing out is due to the fact that both the cars are built on the basis of PQ25 platform which the Volkswagen doesn’t use anymore.
Besides having built using the old platform, the Beetle and Jetta were not performing so well in term of sales in the Indian market which was another reason for to their discontinuation. Though Volkswagen has just unveiled its facelifted Jetta in other countries, it’s not likely that the car will be introduced in India soon. The all new Jetta is built on the basis of MQB platform, which is also the same platform used to built the Skoda Octavia. If needed, the Volkswagen will be able to import the new Jetta quickly into India start selling it here.
13 March 2018
India’s largest and popular passenger automobile manufacturer, Maruti Suzuki India Limited (MSIL) has eliminated any and all plans of introducing an electric Alto (800 or K10) in the near future. However, Maruti Suzuki is scheduling the launch of its BSVI-compatible Alto in India before April 2020. The plans for an electric Alto was scrubbed due to the Alto being an entry-level car and installing electric technology onto it would make it pricier as a result of high input cost in India.
Maruti Suzuki has already sold more than 35 lakh Alto cars in India and the model is getting a new facelift soon in order to meet the upcoming BSVI emission norms. The prices of the Alto are speculated to increase by approximately Rs.20,000. The car will also have the ABS and airbags as per the set standard. At present the Alto 800 starts from Rs.2.51 lakh but the basic version of the car doesn’t not have features like ABS and airbags. The Alto K10 starts from Rs.3.33 lakh and goes up to Rs 4.18 lakh (all prices ex-showroom Delhi).
12 March 2018
The Maruti Ciaz, Honda City and Hyundai Verna have been dominating the sales in India with high figures. Even though the Volkswagen has its Vento in the segment it has not been able to compete with the trio. Seeking for more attention in the market, Volkswagen has introduced Vento Sport with the starting ex-showroom price at Rs.11.44 lakh in India. The cost of the petrol TSI automatic variant is at Rs.12.79 lakh, the cost of diesel automatic variant is at Rs.14.17 lakh and the cost of diesel manual variant is at Rs.12.92 lakh.
The new Vento Sport comes with a number of stylish features and specifications, a few of them are:
The car is available in three variants in terms of its engine, the 1.6-litre naturally aspirated petrol engine can generate 105 Bhp and has a five-speed manual gear while the diesel engine has a cc of 1.5-litre unit that can generate 110 Bhp and comes with a five-speed manual gear or dual-clutch automatic transmission. The third engine variant, 1.2-litre petrol engine, comes turbocharged and generates 105 Bhp and comes with a 7-speed dual-clutch automatic transmission.
9 March 2018
Volkswagen’s Skoda division is getting ready to explore the entry-level car platform in Indian market and the firm would be seen launching its vehicles lined up for the same in 2021.
Skoda, since the talks with Tata Motors subsided in August, 2017, has been evaluating whether the Volkswagen's MQB A0 platform could form the foundation for a low-cost vehicle.
Skoda is planning to produce over 300,000 cars every year as its initial step towards entering the entry-level car market.
Skoda would be investing $2.5 billion in electric cars and digitalisation of vehicles over the next 5 years, which would result in introducing 10 electric vehicles by the year 2025. At present, the Skoda division produces close to 1.2 million cars every year which could rise to a 2 million by mid of the next decade.
8 March 2018
Renault is celebrating the International Women’s Day between 6th March and 11th March, 2018 with special offers exclusively for their women customers across all its dealerships in India. The exclusive offers include free car pick up and drop facility, education on the necessary checks and car maintenance with the aim of making women more independent.
A 10% discount on car accessories and parts,10% discount on RSA and Renault Secure which is an extended warranty for Renault vehicles, a 10% discount on Value added services (VAS) and labour, free health check-up and vehicle check-up for women customers are also being provided during the week, among other offers. A special offer is being given on the renewal of Renault Assured along with other assured gifts, to all its women customers. Renault is also organising delightful activities to engage its woman customers who visit their dealerships.
7 March 2018
The State Transport Department of Tamil Nadu has drafted rules amending the Motor Vehicles Act in order to regulate the cab and call taxi aggregators and fix the tariffs for the same in the state. As per the newly drafted rules of the Tamil Nadu Motor Vehicles that has been sent for approval to the state government says, that the all call taxis in the state should have a legal binding with call taxi operators via an affidavit in order to get a permit.
The same rules will be followed by the RTOs in the state as well after collecting the nominal fee to sanction the permit. The cab operator should submit security deposits and procure the licence for call taxis. Each cab per operator should have at least 100 cabs registered under it.
The security deposit to be submitted by the cab driver would be Rs.1 lakh for call taxi and Rs.30,000 for auto rickshaw in order to procure the licence for upto 100 vehicles. In case the operator has more than 100 vehicles registered under it, till upto a 500, the operator should pay a deposit of Rs.3 lakh for call taxi and Rs.90,000 for auto rickshaw.
7 March 2018
According to a senior official from the insurance industry, the rules implemented by the government to regulate the car insurance distribution channels can lead to lower insurance premiums for car owners in India. Following the implementation of the Motor Insurance Service Provider (MISP) guidelines in November 2017, New India Assurance - the general insurance firm owned by the Government, is forcing a lower number of own damage claims in motor insurance.
Seeing the marginal decline in the number of own damage claims reported between October 2017 to December 2017, the New India Assurance is contemplating on passing on a part of the acquired benefit in the form of lower insurance premium to the policyholders. The MISP guidelines state that a 19.5% of the own damage premium can be offered to a MISP as the their distribution fee. The guidelines also mention that MISPs should not to given any incentives in addition to the fixed distribution fees.
6 March 2018
Force India has unveiled its car, named the VJM11, for the 2018 Formula One season. The unveiling was done in the pit lane before the commencement of the winter testing. The rolling out of the the VJM11 was done an hour before the commencement of the new campaign’s first session which made the car the last one to be unveiled. The car retained the pink livery which was seen in 2017, as part of the team's deal with their sponsors, BWT. The car also exhibits the colour on its Halo device.
The VJM11 is expected to maintain Force India's impressive position at the Formula One. The team finished 4th, back-to-back in the last few championship seasons. The team will be challenging the Renault team and the McLaren at the championship, among others.
28 February 2018
Volkswagen is planning to introduce models of over 20 electric vehicles by 2025 and will start by rolling out a compact electric I.D.2 in 2020. The launch of I.D.2 will be followed by an MPV in the I.D. BUZZ4 and the electric I.D. CROZZ3 SUV.
Volkswagen, as part of its electric vehicle campaign, is preparing to disclose the I.D.’s fourth edition at the Geneva Motor Show, 8 March - 18 March. The fourth edition will be a long and sleek sedan and based on the concept I.D. Vizzion concept. The I.D. Vizzion concept reflects the idea of comfort, cleanliness and safety.
The I.D. BUZZ4 will not have any option of manual driving. The car will be on autopilot at all times which is will chauffer the customers who cannot drive themselves.
The digital chauffeur during a journey would respond to gestures and voice commands and would be able to recall passenger preferences such as seat position, temperature settings, etc. All this is possible because of the complete embedding into the digital ecosystem.
26 February 2018
Honda is all set to launch 3 new vehicles over 2018-2019. It is also speculated that the firm might launch an all-new SUV in the price range of Rs.12 lakh - Rs.15 lakh. Honda sold close to 1.8 lakh cars in 2017 and is ready to introduce the all-new Amaze with a complete makeover. The car will come with a 1.5-litre diesel engine and a 1.2-litre petrol engine.
The firm will also be re-launching new-gen models of the CR-V luxury SUV and the Civic premium sedan. The Civic’s new-gen version aims to increase the car’s demand in the market while the CR-V’s new-gen version, on the other hand, will be introduced in diesel for the first time ever.
15 February 2018
The Insurance Regulatory and Development Authority of India (IRDAI) is in the process of setting new regulations for the insurance brokers due to the increasing demand for insurance broking in the country. As of today, there are 428 brokers in the insurance industry. TS Vijayan, the IRDAI chairman, while addressing the 14th edition of the Insurance Brokers Association Summit (IBAI), informed that the new regulations for the insurance brokers will be introduced soon, which will help the government to monitor the brokers and maximise the value for the policyholders. He also said that the insurance brokers must make the process of claim settlements more transparent via technology and also asked them to improve the penetration of insurance across the cities.
14 February 2018
Volvo has given an official confirmation regarding the launch of its first electric car in 2019. The electric car will be a hatchback and built on the 40.2 concept that was revealed in 2017.
The Volvo head, Ha?kan Samuelsson at the launch of XC40 in September 2017 said, that the standalone electric car would be introduced before the electric variants of any existing models.
Volvo, in 2017, was the first among the automobiles manufacturers to announce its plans to mass produce electric vehicles and also stated that in 2019 the firm would begin expanding its electric range to hybrid, electric and mild-hybrid powertrains.
Volvo’s production line-up in India includes the S60 sedan, V40 hatchback and its variants such as the S90 sedan, the updated XC90, the recently launched XC60 and the V90 Cross Country. Volvo has plans to launch the XC40 in India in the mid of 2018.
13 February 2018
Indian car insurers have decided to lower their insurance premium rates on Own Damage Cover by 5%-20% for private and commercial vehicles. This trimming of insurance premium has come in light of the regulations introduced recently by the Insurance Regulatory and Development Authority of India (IRDAI) to cut down the commissions on insurance dispersal by auto dealers. IRDAI has brought down the distribution commision payable to auto dealers at 19.5% for four-wheelers and 22.5% for motorcycles and scooters. Industry experts claim that this is the first time that all the domestic insurers have reduced their premium rates on Own Damage Cover in spite of experiencing high claims.
11 January 2018
Private insurers in india such as ICICI Lombard General Insurance and Bajaj Allianz General Insurance have trimmed their insurance premium rates for all the private cars by 5%-15%. It has been speculated that other insurers would be following the suit in the near future.
The Insurers claimed that the lowered premium rates were the result of introducing Goods and Services Tax (GST) and an overall improvement in efficiency. But according to the insurance brokers, the premiums were reduced by the insurers to save on costs post the motor insurance service providers (MISP) circular that capped commissions on insurance distribution.
11 January 2018
The Insurance Regulatory and Development Authority of India (IRDAI) has asked general insurance firms to make third-party liability cover easily available to vehicle owners across the country. This request was made in light that the tedious process of acquiring a third-party insurance is making it difficult for the state governments to carry out the Supreme Court’s order. The Supreme Court had ordered the states and union territories to perform periodic checks to ensure that every vehicle plying on the road was insured with a third-party liability cover.
10 January 2018
Toyota is planning to launch more products in the mass market segment to strengthen its hold in the Indian market. The Japanese car manufacturer will be entering only selected segments of the mass market in order to eliminate any risk factors. Experts are of the opinion that Toyota will have to produce cars at various price ranges that would increase the buying options for the consumers, thereby increasing its share. It has been speculated that Toyota will be introducing the Yaris Ativ sedan in India which would open the doors for Yaris hatchback as well.
9 January 2018
Nissan Motor India Pvt. Ltd. was providing maximum benefits worth Rs.77,000 as part of its year-end offers on Nissan and Datsun. These offers were only valid for the month of December, 2017.
The benefits also included free insurance, direct cash discount and other schemes. A low interest rate of 7.99% on Nissan Finance was also being offered along with fringe benefits for government employees.
Benefits worth maximum of Rs.77,000 could be availed on the Nissan Terrano while maximum discounts of Rs.63,000 and Rs.56,000 could be availed on the Nissan Micra and Micra Active respectively.
The maximum benefit offered was upto Rs.26,000 on Datsun redi-Go 0.8L, Rs.34,000 on Datsun redi-GO 1.0L and Rs.65,000 on Nissan Sunny. The maximum benefits offered on Datsun GO and Datsun GO+ were Rs.27,500 and Rs.29,000 respectively.
8 January 2018
Bajaj Allianz General Insurance reduced premium rates by 5%-15% for the private car segment effective from January 1, 2018. By reducing the premium rates, the firm aims at encouraging more people to buy insurance.
Bajaj Allianz General Insurance, in the past, has come out with innovative insurance solutions that have been beneficial to the private car policyholders. DriveSmart and Motor OTS are just few among these customer oriented innovative solutions.
8 January 2018
Mercedes-Benz India recently completed 3 successful years of its pre-owned car division, 'Mercedes-Benz Certified'. Formerly known as 'Proven Exclusivity' that was launched in 2010, the firm renamed the brand as 'Mercedes-Benz Certified' in 2014. 'Mercedes-Benz Certified' is now one of the market leaders in organised Pre-Owned Car business holding the largest market share.
The firm has already sold more than 12,000 pre-owned cars which contributes to 60% of growth since the commencement of its operations in India.
Every car at 'Mercedes-Benz Certified' is mandated to go through a 139-point checklist so as to assure that their customers experience the best. Every car sold by 'Mercedes-Benz Certified' has to meet the following criterias:
The age of the Mercedes-Benz model should be less than 5 years
The car should have run less than 100,000 kilometers
The car should not have any accident history
The car should not have more than two previous owners
27 December 2017
The new generation BMW 5 Series was awarded the Premium Car Of The Year award at the 2018 NDTV Car And Bike Awards. The car aced the 2018 NDTV Car And Bike Awards due to its ultra-tech features, balanced performance and the luxury it brings to the platform. This luxury car emerged a winner in spite of the stiff competition given by the Audi A5 Sportback, the Volvo V90 Cross Country, new Mercedes-Benz E-Class, Audi A5 Cabriolet, and the Lexus ES 300h.
The ex-showroom cost of BMW 5 Series lies in the range of Rs.52 lakh to Rs.63.80 lakh and comes in both petrol and diesel variants. The car also comes with an optional A-class M-Sport package. In addition to its extra-large space, the car packs modern hi-tech features such as a smart touchscreen key that comes with a remote parking feature and gesture control that can be pre-set by the driver as per his/her preference.
26 December 2017
Audi has announced on its official Indian website that the all new Audi A8L is going to hit the Indian market soon. The model had grabbed the eyes of every visitor in Audi Summit in Barcelona for its all new level 3 autonomous technology installation. The A8L comes with futuristic artificial intelligence system but will not be available for Indian market because of government’s AI on cars.
It is lighter than other models as it uses aluminum, steel, magnesium and carbon-fibre for construction. Audi A8L has reworked exterior with front end incorporating a wider single-frame front grille with LED matrix headlamps. A8L comes with multi-spoke alloy wheels with chrome strips running the length of the car till the rear. It has an OLED tail lamp which wide than the other models along with chrome-tipped dual exhausts. If the exteriors are this sporty and edgy, the interiors are no less. It comes with Audi Virtual Cockpit and two HD touchscreens with 10.1 inch touchscreens and 8.6 inch for the central console. It is all framed with single wood incorporated with hard-touch materials in piano finish.It is a 3.0 litre turbocharged V6 engines. It is expected to be prices from Rs.1.30 to Rs.2 crore.
22 December 2017
As a part of the year end sale clearance offer, Honda is offer big discounts up to Rs.1.5 lakhs on Brio, Amaze, BR-V, CR-V, Jazz and City. All the car manufacturing companies are offering similar discounts as a part of their year end sales offer.
The japanese car maker has rolled out great deals on almost all its models. Honda Brio,the entry level hatchback is available at Rs.20,000 discount. The sedan variant Amaze is being discounted at Rs.60,000 on current model for both petrol and diesel variants. Along with this the customer will also be offered with Rs.13,000 cash, first year free insurance worth Rs.25,000 , 2 year free maintenance package. The premium hatchback Jazz is available at a discounted price of Rs.60,000 along with first year free insurance worth Rs.30,000 and an exchange bonus. The sedan luxury City is discounted at Rs.35,000 along with first year free insurance. The Compact SUV Honda BR-V has the big discount of Rs.1 lakh. To clear the existing stock of CR-V and to make way for the all new CR-V launching next year, Honda is offering a whopping discount of Rs.1.5 lakhs.
21 December 2017
Automobile launches have seen a gradual decline in the last four years as the struggle to keep pace with rapidly changing norms increases tenfold. From 10 automobile launches in 2013 to the count of 5 in 2017, the market has seen a substantial fall.
An increase in the awareness of vehicle pollution and India’s simultaneous upgradation from BS-IV to BS-VI has played a vital role in the decline of car launches in India.
Excluding Maruti, most carmakers have become cautious with investments to avoid challenges of profitability. Factors such as GST and demonetisation also play an integral role in bringing the market down. Additionally, an increase in the demand of electric vehicles has also demoralized carmakers to enter the current market scenario.
Kumar Kandaswammy, a partner in Deloitte India expressed concern in this regard saying that the BS-VI has been a hurdle since its inception. He also described the automobile game as a long-term venture and guaranteed any sudden changes could muddle things.
19 December 2017
Korean car manufacturing company Hyundai, is all ready to rock and roll again with all new Creta facelift 2018. The vehicle was spotted testing the model, which was launched in Brazil last year for Indian roads.Creta facelift was spotted in Yercaud, a small hill station in Tamilnadu. Creta was launched in 2015 in India and ever since it has been blockbuster model and as there are no signs of this beast becoming a old model, Hyundai is ready to up the ante with its all new features. Creta is the best selling SUV in the compact SUV segment.
The new Creta will have few changes both exterior and interior which is similar to ix25.The fog lamps in the front with day time LED display, restyled alloy wheels,dual exhaust setup, tail lamps and on the interior front, the cabin is expected to be similar to Verna, reworked dashboard featuring center console and infotainment screen with sunroof ventilated seats are likely to be the new features of Creta facelift 2018.
15 December 2017
Maruti Suzuki issued service campaign for nearly 21,000 units of manufacture for Dzire subcompact sedan variant, that was manufactured between February 23 to July 10 this year over a faulty rear wheel hub for certain cars. The company has already started calling customers who purchased the car between that period for a free of cost Check-up and repair of the vehicle.
Dzire subcompact sedan is one of the biggest sellers of Maruti Suzuki, it had already hit 1 lakh units sales with just 5 months of its release. Owners of the vehicle can check if their car needs an inspection by entering the chassis number on Maruti’s website. Issuing a service campaign for such a huge volume has created a panic situation in the company as it has performed extremely well with the masses. The company is confident that, their service quality and satisfaction of customers would bring back the numbers on top.
12 December 2017
In a recent case, a truck driver Manjeet Singh was robbed of his truck by a stranger when he offered to give him a lift. Manjeet Singh had applied for claim for robbery, but was denied by the insurance company on the grounds that he breached the policy agreement by giving a lift to a stranger who robbed him of his truck during the journey. A bench of justice of apex court headed by Madan.B.Lokur and Deepak Gupta slammed the National Insurance Company for its argument trying to nullify the policy for a humanitarian gesture by the insured.
The court Directed the insurance company to pay 75% of the insured amount which is Rs.7.28 lakh along with rate of interest of 9% p.a. From the date of claim petition. The court also directed the insurer to pay Rs.1 lakh as compensation for all his trouble. This new law by the supreme court will help many other drivers and transport vehicle owners to come forward for justice if they too have gone through the same.
11 December 2017
If you are planning to buy a car anytime soon, this is your golden opportunity. Maruti Suzuki, Tata Motors, Audi, Volkswagen, Renault, Honda and Hyundai, car manufacturing companies are offering huge discounts and savings ranging from Rs.25,000 to Rs.8.85 lakh as year-end sale clearance campaign before the New Years.
The offers depends on the region and dealers. Maruti Suzuki is offering discounts on Alto, Wagon R, Swift, Ciaz, Celerio, Ignis and Ertiga. Hyundai is offering huge savings discount on Grand i10 diesel and Elite i20, along with infotainment worth Rs.10,000 is offered on all variants. All you need is Rs.1 to drive home a Tata car. Tata Motors is offering discounts Tiago, Hexa, Indigo e-CS and all its SUVs with huge savings discount along with free insurance and 100% financing. Honda is offering saving discounts on City, CR-V and Jazz along with one year free insurance.
If you want to buy a luxury car, now is the time! Audi has slashed its price on A3,A4,A6 and Q3 upto Rs.8.85 lakh. If you buy the car under December rush now, your EMI will start only from 2019.
11 December 2017
Tata Motors received a huge and successful response during the festive season sales. To take things further, Tata Motors is now offering year end sale on all its models with a downpayment of Rs.1. You can now drive home your dream car and save upto Rs. 1 lakh depending on the model and variant. Tata Motors has launched this campaign to push its yearly sales and increase its market share in the country. The company has tied up with a number of financial institutions and banks to provide 100% financing to the customers who wish to buy a tata vehicle. Apart from this, the company is offering huge savings and benefits with discounts on accessories and insurance premium on exchange of old vehicle.
As the festive season approaches, automobile companies launch various campaigns to increase their sales percentage. Recently luxury car making company Audi had launched similar offer on its models A3,A4,A6 and Q3. The company had provided options for low cost EMIs and special prices as a part of its ‘limited period offer’ campaign. It is predicted that in the coming days, similar offers can be expected by other car manufacturers.
8 December 2017
According to an RTI act, filed by Advocate Pawan Parik, the police guidelines have clearly mentioned that a traffic cop cannot pull out the keys from your vehicle or deflate the tyres for parking outside the yellow zone. This act is punishable under Motor Vehicle Act of 1932. No police officer irrespective of the rank is eligible for this act. Non-traffic police authorities are not allowed to stop you on the road and ask for the documents. If you are facing the same with any officer, you can report this to a local police station and file a complaint for the cops behaviour with the commoner. So know your rights properly so that you can stop and speak for what is right.
7 December 2017
The Insurance and Regulatory Authority of India (IRDAI) has recently decided to cap the commissions paid to the auto dealers by the insurance firms. The IRDAI also added that this capping of dealer commissions will not impact the motor insurance premiums by much. The auto dealers have been added to the motor insurance service providers (MISP) list due to their role as the primary distributors of motor insurance to vehicle owners.
Earlier, the motor insurance firms were paying commissions in the range of 25% - 30%. Now the commission payable to any auto dealer has been brought down to 19.5% for four-wheelers and 22.5% for two-wheelers. Currently, general insurers are moving towards risk-based pricing. The premiums will be priced lower in places that exhibit low loss ratios when compared to the places that show higher loss ratios.
1 December 2017
Mahindra will be launching two new electric vehicles, the first of which will be introduced by the end of 2018 while the second one will be introduced by the end of 2019. Dr. Pawan Goenka confirmed that the firm will be launching the two new electric cars based on the existing platform.
Mahindra Electric is working on multiplying its production from a capacity of 500 units/month to 1000 units/month. The company confirmed that this increase in production is expected to be completed in a span of 4-5 months.
Dr. Pawan Goenka also confirmed that the firm will boost its monthly production to 5000 units by the year 2019.
Mahindra has invested Rs.500 crore in the production of electric vehicles and has definite plans to invest another Rs.500-600 crore over the next 3 years.
The Pininfarina brand owned by Mahindra is also working on developing a high-end electric vehicle to compete with that of Tesla’s, which would be Mahindra's entry into the global market. This particular model will not be launched in India until there is enough demand for the product.
27 November 2017
Volkswagen just hosted a three-day carnival called the Big Rush carnival, which went on from the 24th until the 26th of November, this year. This carnival was exclusively for the owners of Volkswagen Polo, Volkswagen Vento, and Volkswagen Ameo. The customers were offered attractive exchange schemes and assured gold coins, among other benefits. Volkswagen was also offering support and service offers for the purchase of the said cars.The customers were also being offered special finance schemes and attractive pricing on some of the best motor insurances that could be availed during the three-day carnival. The firm also gave away assured gifts to the customers on other value-added services and test drives. During this carnival, Volkswagen dealerships across India stayed open for extended hours to serve maximum customers and give them sufficient time to available the benefits. The Big Rush carnival took place across India, at over a hundred Volkswagen dealerships.
27 November 2017
The budget-friendly Tata Nano will soon be launched in an electric variant under a new name – Neo. For the new model, Tata Motors will be supplying the body shells of the Nano, while Jayem Automotives will be supplying the electric motor and powertrain. It is also reported that the first batch of Neos are being made for a taxi aggregator in the country, and will be supplied to them shortly.
Jayem Automotives and Tata Motors has formed a joint venture earlier this year called JT Special Vehicles, with a focus on developing special performance vehicles. The new electric car, which is designed to run, with air-conditioning, for 150 km on a single charge, will be assembled and marketed by Coimbatore-based Jayem Automotives.
24 November 2017
By 2030, the union government wants car manufacturers to produce more Electric Vehicles (EVs) as the availability of fuel will be much scarce then. But this means, that the automotive component makers will be affected drastically by this move from the government. The major parts that will take a hit from this move are engine, transmissions, aluminium castings, cylinder blocks and cast iron. In an Internal Combustion Engine, it requires about 2,000 part to make it work. Whereas in electric vehicle it requires only 20 of them. The Auto Component Manufacturers Association of India (ACMA) is preparing a report about the impact of this change and will submit it to the ministry in a month to address the issue.
23 November 2017
South Korean carmaker Hyundai is likely to launch a new compact car in India next year. Recent masked images of a car undergoing trials have come up on the internet, with some enthusiasts of the opinion that this model could be a new version of the Santro.
The Hyundai Santro has been a popular brand in India, having been in production for 16 years from 1998 to 2014. If the rumours are true, it would bridge the current gap in Hyundai’s line-up, positioning itself between the Eon and the Grand i10.
It is expected that the new car will be priced around Rs.4 lakh, with Hyundai aiming to deliver on mileage and efficiency. The company is revamping its portfolio in the country, with 8 new cars expected to be launched over the next three years.
22 November 2017
Maruti Suzuki, which has been one of the most preferred cars in the country, will be receiving a generation change with the car manufacturer releasing an all-new model that will be making its debut next year at the 2018 Auto Expo. Since the model has almost reached the end of its life-cycle, the car manufacturer has launched a new limited edition Swift variant in the country. The petrol version of the car is priced at Rs.5.45 lakh, while the diesel version is priced at Rs.6.34 lakh. The customer-friendly hatchback will be getting a range of feature upgrades and enhancements on the limited edition variant of the model.
22 November 2017
Online insurance giant Coverfox Insurance Broking Pvt.Ltd who managed to generate twice the revenue for the year 2016-17 from Rs.2.64 crore to Rs.6.12 crore, has also managed to shrink its loss compared to last year. The company has managed to reduce its net loss to Rs.31.85 crore to Rs.35.07 crore. Coverfox was founded by Devendra Rane in the 2013, it offers Health Insurance, Home Insurance, Car Insurance and Travel Insurance through online facility.
20 November 2017
Tata Motors is offering discounts between Rs.2,000 and Rs.81,000 on certain models from their line-up, this month. The Tata Safari Storme is being offered with a discount of Rs.81,000. Vehicle buyers can also avail benefits amounting to Rs.78,000 on the purchase of a Hexa. These benefits include corporate offers, insurance benefits, and an exchange bonus.
Prospective buyers can also avail a discount of Rs.28,000 on the purchase of the Tigor, a compact sedan. The petrol-variant of the sedan comes with added insurance benefits. The Zest, which is another compact sedan, is also being offered with discounts up to Rs.63,000, as per the colour availability of stock, and variant. The Tiago is being sold with a corporate benefit of Rs.2,000. These offers, however, will only be valid until 25 November 2017.
17 November 2017
New India Assurance, which was recently listed, announced a net profit of Rs.748 crore for the second quarter of the fiscal year, which ended on September 2017. This was a 187% increase from what the company reported as their net profit during the corresponding period of the last fiscal year. Based on their performance, the company’s board has announced an interim dividend of 75%. The company’s profits increased due to an improvement of the combined ratio. With the addition of the investment income, the insurer’s recent adjusted combined ratio came up to 91.45%. According to the company’s chairman, the firm’s health insurance and motor insurance portfolios are expected to improve in the near future. The insurer has recently partnered with Punjab National Bank, Bank of India, Bandhan, Canara Bank, and South Indian Bank to increase their distribution channels.
16 November 2017
Renault, one of the top automobile brands in India, announced the launch of their new initiative this Thursday. The initiative is to offer after-sales service nationwide called Renault Winter Camp. The after-sales service camp will be held across India at all the Renault service facilities, starting from November 13 – November 19, 2017. The intention behind the Renault Winter Camp is to assure that the cars give an optimal performance even during the winter season and to reinforce the bonding between Renault and their customers by ensuring utmost care. The camp has dedicated, highly trained and competent service technicians to provide the expert attention and care needed for the cars.
The service camp offers a car check-up to Renault owners adhering to the guidelines provided by Renault India. The car check-up includes a detailed examination of all primary functions of the car. These occasional checks assure necessary actions for enhanced performance of the car and provide customers a rewarding ownership experience with the brand. In addition to the car check-up facilities, a host of additional facilities will also be provided to the customers. The workshops will organize interesting activities to engage customers, enhancing the overall customer experience. Other facilities include providing attractive and exclusive plans for insurance renewal, 15% discount on selected accessories, parts and other value-added services.
14 November 2017
A consumer court has ruled that auto/motor dealerships that charge extra handling fees, in addition to what is fixed by the government, will have to pay a hefty fine since this will amount to unfair trade practice. In a recent complaint by a distressed consumer against a car dealer that compelled the complainant to pay additional charges, the consumer court granted a compensation to the tune of Rs.1 lakh to the complainant for the mental suffering that they had to go through. The auto dealer was forced to pay this amount to the consumer as a fine.
13 November 2017
General insurance firm, HDFC ERGO, has launched a self-insurance application that will enable motor insurance policyholders to instantly renew their insurance policies without having to get their vehicle inspected by a company-authorised surveyor. This user-friendly application is expected to be launched in December. In order to use this service, individuals will have to first log into the insurer’s official website or mobile app.
Once the user is logged in, they will have to key-in certain details, after which they will be able to choose between the traditional surveyor inspection and self-inspection options. If the user selects ‘self-inspection’, an SMS will be sent to the user’s mobile with the link for the self-inspection application. After the user installs the application, they can proceed to record a 45-second video of their vehicle along with certain required photos. These photos will have to be uploaded by the user, and they will then be verified by the insurer.
9 November 2017
According to a recent report, automobile sales during Diwali piped down this year.The big players in automobile industry like Tata Motors, Maruti and Mahindra informed that the sales growth staggered to a single-digit when it came to car sales during the festive season.
Recently, Hyundai's sales in India dropped marginally. Similarly, Ford also witnessed sales drop of 44% while it was planning to launch the updated model of EcoSport, one of the best selling SUVs in India.
Swift, Dzire and Baleno mainly drove the sales this season with utility vehicle and compact SUVs sales that increased by 29.8% from last year. However, most of the mini segment cars saw a decline in their sales by 4.2% from last year.
Although, Toyota (TKM) reported a 6.45% increase in domestic sales than last year, Mahindra saw only a marginal growth in their sales.
Overall the automobile industry has had a mixed sales forecast this festive season.
6 November 2017
Police in Cyberabad issued a notification that vehicles without proper third-party insurance coverage will be seized from now on. Cops have also issued a 15-day ultimatum for all citizens to get adequate insurance coverage for their vehicles. This announcement comes amidst rising complaints that many vehicles in Cyberabad do not have the necessary third-party insurance coverage.
Rather than charging the violators with a fine or citation, confiscation of vehicles is likely to prompt more people to follow proper regulations with regard to insurance coverage. According to the order, confiscated vehicles will be released only after providing proof of adequate insurance coverage.
Cyberabad police commissioner Sandeep Shandilya cited the order of the Supreme Court as the reason behind this move. Section 146 of the Motor Vehicles Act of 1988 makes it mandatory for all motor vehicles in India to have third-party liability insurance.
6 November 2017
The Insurance Regulatory and Development Authority of India (IRDAI) has now made it mandatory for insurance firms to update details of all MISPs (motor insurance service providers) on the Insurance Information Bureau of India (IIB) portal. Earlier this year, the insurance regulator had asked MISPs/auto dealerships to recognise their role in providing motor insurance policies to customers. Thus, insurance companies will have to provide the details of all MISPs appointed by them to the IIB. This data can be uploaded on the portal starting from 1 November, 2017.
6 November 2017
The Narendra Modi government is planning on tracking the offenders who have no insurance coverage for their vehicles. According to a recent report, the road transport ministry has asked insurance companies to share details of insured vehicles with the government. The road transport ministry is then planning to cite the data of uninsured vehicles on an online platform that can then be accessed by state transport departments and traffic police to catch those who haven’t insured their vehicles.
This step has been taken to answer the growing concern over vehicles that are commuting on the roads without the necessary vehicle insurance. Driving any vehicle without a vehicle insurance is an offense and will evoke up to Rs.1,000 fine or a possible prison sentence of three months. Earlier this year in August, the Supreme Court had issued a number of regulations including one which stated that insurance companies should not renew any vehicle insurance unless the owner provides a PUC (pollution under control) certificate.
Although, Toyota (TKM) reported a 6.45% increase in domestic sales than last year, Mahindra saw only a marginal growth in their sales.
Overall the automobile industry has had a mixed sales forecast this festive season.
2 November 2017
Cars from Maruti Suzuki have taken 7 out of 10 spots in the passenger cars segment sold in the Indian market, in July 2017. As on July 2017, the car manufacturer sold over 2.98 lakh units, and has reported a 15.12% growth over last year. The market leader has sold over 4,945 cars every day, last month. Five hatchbacks, one SUV, and one sedan by Maruti Suzuki featured in the list. Hyundai Motor India also claimed three spots on the list with its flagship models. The top-selling car this year continues to be the Maruti Suzuki Alto. The second spot went to Maruti Suzuki Baleno, which is sold in both diesel and petrol engine options. The third spot was taken by Maruti Suzuki Wagon R, due to the car’s sales increasing by 7.19%.
25 October 2017
The growing popularity of autonomous vehicles is expected to disrupt the motor insurance/reinsurance industry in the future. Analysts have predicted that autonomous vehicles could cause a decline in premiums, in the future. Motor insurers face the risk of reduced accidents and the shifting of insurance purchase from individuals to corporate buyers and OEMs. The reduced risk could cause the motor insurance industry to reduce in size. However, these are all long-term implications, and it is likely that there will be no immediate consequences. For now, motor insurers still have the opportunity and the time to adjust to the changing demands and make the necessary innovations to deal with this.
25 October 2017
The Insurance Regulatory and Development Authority of India (IRDAI) has now permitted general insurance companies to sell their motor insurance policies via auto dealers, even if they don’t have a tie-up with the dealer. This new move will provide more choice to customers in terms of insurance covers and competitive pricing.
Before this move was passed, it was compulsory for customers to purchase motor covers from a general insurer that had an exclusive tie-up with the dealer. Also, insurers could not offer differential pricing as a way to reward certain customers. Policyholders will stand to benefit from this in terms of availing cashless service in network garages, as dealers will not be able to discriminate between customers on the basis of whom they purchased the policy from.
12 October 2017
The Supreme Court has ruled that motor insurance providers will not be able to reject genuine claims, simply on the grounds of delayed claim filing if the claimant is able to satisfactorily explain why such a delay was caused. The court also emphasized that the Consumer Protection Act strives to protect the interests of the consumers, and therefore it warrants liberal construction. Experts have reportedly said that the Supreme Court verdict will help restore customers’ faith in insurance companies.
9 October 2017
Technological advancements and rising adoption rates may allow Indian motor vehicle insurance companies to shift their coverage area from asset-based insurance to usage-based insurance. The IRDAI (Insurance Regulatory and Development Authority of India) has asked insurers to look into Telematics Insurance. The regulator is considering reducing the price tariffs, permit usage-based insurance, and free-up or reduce the level of regulation.
Telematics alerts will send automated alerts/data to the insurer if the driver meets with an accident. This guarantees that the insurer is made aware of the accident instantly. Further, it can also help the insurer gauge the severity of the accident. The insurer will also be able immediately provide assistance, in terms of towing service, sending emergency personnel, etc. The said technology can also be used to assess the driver’s behaviour. Thus, a safe or low-risk driver may have to pay 30% less as their premium.
6 October 2017
The Insurance Regulatory and Development Authority of India (IRDAI) has now made it mandatory for all car dealers to offer car buyers a choice of insurance policies from different insurers. This will also apply to car owners looking to renew their motor insurance policy. This new move is expected to benefit customers since they can now compare and choose between motor insurance plans before purchasing one. Until now, customers had to purchase a policy from any insurer that had a tie-up with the dealer, without being able to compare between plans.
These new guidelines came into effect after a committee, which was set-up by the IRDAI, studied and submitted a report on motor dealer payouts, last year. According to the new norms, the MISP (Motor Insurance Service Provider) will have to issue a receipt from the insurer after they receive a premium payment, and they will also have to help the customer create an e-insurance account. MISPs will be expected to comply with the IRDAI’s directions.
Further, the MISP will also have to cover any insurance claims, repairs and cashless services requested by the policyholder, and any information about the initial estimate and the final amount that will be settled will have to be communicated directly to the policyholder by the insurer. The IRDAI can also suspend the appointments of an MISP if it is found to be operating against the interests of policyholders.
13 September 2017
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