25. Motor Insurance – 24 Articles Later and in Conclusion

As I write this piece, Motor Insurance claimfiles sprint across my mind. The angry exchanges customers had with the motor insurance officials in an insurance office come in like the waves of the sea in my mind. Millions of unsettled motor insurance claims, lakhs of customers who have gone to the court crying foul and injustice – are some of the bitter reminiscences of motor insurance. In fact, Motor Insurance has only one side…the Ugly side!

Majority of Motor Insurance customers would be continuing to be unhappy; those customers whose motor insurance claims are settled or paid by the insurance companies should consider themselves as fortunate. The motor insurance business will continue to plagued with more dynamic variants than the Delta variant. The obvious reasons are as follows:

1) The insurance regulator (IRDAI) has absolutely no control over the insurers. Every insurer is a regulator onto himself.

2) It is strange that the motor insurance applications are different from insurer to insurer.

3) All motor insurance applications have irrelevant questions such as the Classic Car Club of India, Automobile Association of India etc.

4) Various useless covers to extort more premium from the customer are added to the policy – Engine Protect cover, Vehicle Replacement Advantage cover, Tyre Safeguard cover, Keys and Locks replacement cover, Consumable Expenses cover, Rim Safeguard cover… to name a few. If every cover were to be purchased separately by the insured, I wonder and with me you too cry foul what is the original risk cover the motor insurance is providing?

5) The policy wordings – there are no definitions of the terms used in the policy wording. They are such ordinary definitions which ought to be there in the policy, but very strangely missing. For example, Road, Passenger, Insurer, Insured, Third Party, Accident, Comprehensive insurance, Proposal form, Policy schedule, Authorized driver…to name a few. For none of these key words/phrases we find a definition in the policy wording.

6) The supposed risks which the insurer is covering are too vague. In other words, these risks can mean anything and everything. There are ten such risks that are covered by the motor insurance policy. For each of these covered risks you’re your understanding is different from the understanding of the insurer. Fire, Explosion, Self-ignition, Burglary, Theft, Riot, Strike and Terrorist activity…to name a few.

7) Each company offers their own method of calculation of No Claim Bonus (NCB). Some companies give 45% of the premium as NCB and others give as less as 20% towards NCB on first renewal.

In conclusion I wish to say, since motor policy is compulsory, I request you to check thoroughly before you buy. Expecting insurer to explain everything is a dream. Forget it. The only connecting link between you, the customer and the insurer is the compulsory law. Honour the law, pay minimum premium. Unless these things discussed in the last 24 articles are not sorted out (I do not think it will happen in the next decade) you cannot have an honest motor claim settlement.

I am not saying that insurers are a bunch of cheaters, deceivers and hell bent on looting you of your money. It is for you to decide. As long as things are not sorted out, I will continue to hear the wild music of angry exchanges between the insureds and the insurers. The insurance ombudsman will be very busy in rejecting claims. The referred (in the policy wordings) arbitration clause is yet another method of cheating. Finally, I cannot say the courts are not doing justice. If I say that then it will be against the law. Therefore, I can only and sincerely say please go to the courts for justice. One prayer to all the motor insurance policyholders – May the gods continue to bless you all. May you even after having the accident not claim from the insurer. May you enjoy the ride in your vehicle, always.

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