Your Motor Insurance Premium Could Get Lower Due To Lockdown

Due to the COVID-19 induced lockdown, there has been a sharp fall in the number of claims made to general insurance companies in relation to motor vehicle damages, as policyholders stayed off roads. In the 60 days of complete lockdown across the country, fewer road accidents were reported.

Consequently, some companies are offering discounts to its customers on renewal of motor policies, passing on this benefit.

According to a LiveMint report, Acko General Insurance Ltd is offering around a 10-15 percent discount. Other private players are also studying data to reward customers who have been with them for a long period.

This discount offered is in addition to any general offers that these companies have been already offering at the time of renewal as a no-claim bonus (NCB) or other discounts.

In the US, some insurance companies such as Liberty Mutual Insurance have offered credit to policyholders as they stayed at home between March and May to curb the spread of the virus.

Note that these discounts, if offered, would be on the own damage part of the insurance and not the mandatory third party motor insurance which is regulated by IRDAI (Insurance Regulatory and Development Authority of India).

Further, not all insurers maybe able to provide these discounts as general insurance companies that sell health insurance and policies in the other segments may have seen a rise in those claims.