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INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)

International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –

6510(Online), Volume 3, Issue 2, May-August (2012)

ISSN 0976 – 6367(Print) ISSN 0976 – 6375(Online) Volume 3, Issue 2, May- August (2012), pp. 335-347 © IAEME: www.iaeme.com/ijm.html Journal Impact Factor (2012): 3.5420 (Calculated by GISI) www.jifactor.com

IJM

© I A E M E

MOTOR INSURANCE AND ITS INCREASING COST WITH FOCUS ON INDIAN MARKET - CAUSES, EFFECTS AND REMEDIES

1. T.Sivakumar, Research Scholar, School of Management, SRM University, & Assistant Chief Engineer, Traffic Lab, Quality Assurance and Research, Highways Department, Chennai,TamilNadu,India.

sivakumar_0906@yahoo.co.in

2. Dr.R.Krishnaraj, Research Supervisor, &Assistant Professor, School of Management, SRM University, Kattankulathur Chennai,TamilNadu,India.

rkraj6@yahoo.com

ABSTRACT

Globally Motor Insurance is the biggest and fastest growing General Insurance portfolio and India is no exception to it. It accounts to 41% of the total General Insurance premium in India. In the year 2011 the total premium for Motor Insurance is about Rs.14566 Crores 1 , however at the time of Nationalization it was only Rs.25 Crores. The number of motor vehicles in India has gone up from 306000 in 1951 to 114951000 2 in 2009. The main concern about the Motor Insurance or take any other General insurance is the ever increasing premium rate. This really frustrates the genuine buyers of this type of insurance. This paper examines the causes, effects and remedial measures on this issue.

KEYWORDS: Motor Vehicle Act, Third Party Liability (TPL), Insured Declared Value (IDV), Underwriting

1. HISTORY OF INSURANCE

In India, insurance has a deep-rooted history 3 . It finds mention in the writings of Manu ( Manusmrithi ), Yagnavalkya (Dharmasastra ) and Kautilya ( Arthasastra ). The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. The insurance got its opening in 1912, since the Indian Life Insurance Company Act is enacted. The details of the important milestones in Indian Insurance 4 industry is tabulated in Table 1.

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International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online), Volume 3, Issue 2, May-August (2012)

TABLE 1 MILESTONES OF INSURANCE REGULATIONS IN INDIA

Milestones of Insurance Regulations in India

Significant Regulatory Event

1912

The Indian Life Insurance Company Act

1928

Indian Insurance Companies Act

1938

The Insurance Act: Comprehensive Act to regulate insurance business in India

 

Nationalization of life insurance business in India

1956

with a monopoly awarded to the Life Insurance Corporation of India

 

Nationalization of general insurance business in

1972

India with the formation of a holding company General Insurance Corporation

1993

Setting up of Malhotra Committee

1994

Recommendations of Malhotra Committee published

1995

Setting up of Mukherjee Committee

1996

Setting up of (interim) Insurance Regulatory Authority (IRA) Recommendations of the IRA

1997

Mukherjee Committee Report submitted but not made public

 

The Government gives greater autonomy to Life Insurance Corporation, General Insurance

1997

Corporation and its subsidiaries with regard to the restructuring of boards and flexibility in investment norms aimed at channeling funds to the infrastructure sector

 

The cabinet decides to allow 40% foreign equity

1998

in private insurance companies-26% to foreign companies and 14% to Non-resident Indians and Foreign Institutional Investors

 

The Standing Committee headed by Murali Deora decides that foreign equity in private

1999

insurance should be limited to 26%. The IRA bill is renamed the Insurance Regulatory and Development Authority Bill

1999

Cabinet clears Insurance Regulatory and Development Authority Bill

2000

President gives Assent to the Insurance Regulatory and Development Authority Bill

2. MOTOR INSURANCE Motor Insurance is a combination of two words motor + insurance. Motor as defined in Motor Vehicle Act 5 is a self propelled vehicle. Insurance is the protection against unforeseen risk. The unforeseen risk is an accident which can not be foreseen ,which may or may not happen ,it may result in creation of liabilities or result into financial loss .Injuries, death to a person or persons and damage to a property is liability. Damage to the vehicle itself and theft of parts or the theft of the vehicle itself is financial loss. Motor insurance is thus protection against the risks in order to overcome the liabilities including financial losses associated with accidents The policy which is mandatory as per Indian Motor Vehicle Act is

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International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online), Volume 3, Issue 2, May-August (2012)

Liability only policy. But most of the people prefer Comprehensive policy which also covers the financial loss.

3. MOTOR INSURANCE IN INDIA In U.K ,1 st Motor car was introduced in 1894 in 1895 1 st Motor policy only third party liabilities was introduced in 1899 ,accidental damage to car was added (Comprehensive Insurance)in 1903 Car and General Insurance Company was established , mainly to transact motor insurance. Practice in India normally follows that of England. Motor Vehicles Act (MAV) was passed in the year 1939.Complulsory Third Party Insurance was passed on 1 st July 1946.Motor Vehicles Act 1988 replaced the MAV 1939 and is effective from 1 st July 1989. In India, motor insurance is an important part of the rules of the road. Therefore, it is necessary for every owner to get his vehicle insured. According to the Motor Vehicle Act 1988, every vehicle plying on the road or in public areas in India must be insured for the liability towards third party. It is the vehicle owner’s choice to get a comprehensive policy which includes the third party liability coverage. If caught without a valid insurance policy for the vehicle, the owner or the driver can be penalized for violation of the law. But though the TPL is compulsory by some studies the compliance is poor with an estimated 50% of vehicles not recovered. Presently, Motor Insurance in India accounts for about 41 percent of the gross insurance premiums written in the Indian non – life market, or over Rs.14566 Crores with more than 4 Crore polices, which makes it the largest non-life insurance business today. The share of Motor Insurance in General Insurance 6 for the past two years is 39% and 41% which is given in the Table 2. This clearly shows the importance of Motor Insurance in the insurance sector.

Table 2

General Insurance Premiums

 

Motor

       

Year

Insurance

Rs in

Crores

Health Insurance Rs in Crores

Others Rs in Crores

Total Rs in Crores

Percentage of

Motor

Insurance

2010-11

18,407.29

11,245.25

17,702.69

47,355.24

39.00%

2011-12

24,175.91

13,344.99

20,835.63

58,356.53

41.00%

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FIGURE 1

Share of General Insurance Premium in 2011-12 36% 41% 2 3%
Share of
General Insurance Premium in 2011-12
36%
41%
2 3%

Motor Insuran ce Health Insuran ce Others

4. MOTOR VEHICLES GRO WTH IN INDIA

world. India

became the fifth largest motor

manufacturers produced a recor d 1.48 Crores motor vehicles in 2010. 0.354 C rore cars and commercial vehicles were produ ced in 2010 out of which 0.305 Crore were c ars. Domestic

0.195 Crore

vehicles were sold. India is the largest manufacturer of three-wheelers (444,00 0 in 2009-10) and the eighth largest commerc ial vehicle (5.3 Lakhs in 2009-10). India is al so the largest tractor manufacturing country (a round 1/3 of global output) having produced ar ound 370,000 units in 2009-10. The chart 8 in F igure 2 shows the growth in sales of motor veh icles in India from 2003 to 2009.

passenger vehicle sales hit a n ew record in 2009-10 (Apr-Mar) when over

vehicle/car manufacturer 7 in the world in 2011 . Indian auto

India is one of the fast est growing automobile industries around the

FIGURE 2

fast est growing automobile industries around the FIGURE 2 5. GROWTH OF MOTOR IN SURANCE IN

5. GROWTH OF MOTOR IN SURANCE IN INDIA

The insurance se ctor is a colossal one and is growing at a spee dy rate of 10- 15% .Together with banking ser vices insurance service add about 7% to the co untry’s GDP.

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As motor insurance is mandator y as per the law and due to the growth of mot or vehicles in India, the motor insurance sector is growing at a very fast pace.

shown in the

Figure 3 below. The no of motor Insurance policy had gone from 30083880 to 4 390729 i.e., a growth of 46% and the premium had gone from Rs.9350.31 Crores to 14566.47 Crores i.e., a growth rate of 55.79%.This cle arly shows the pace at which this sector is gr owing. To be

specific about the Car Insurance and its claims as shown in Table 3 and Figure 4 ,the number

of policies had gone from 63836 95 to 10100109 i.e., at a rate of 58.22 % and

had gone up from Rs.3886.59 economic growth of the country.

the premium is due to the

The growth of Motor In surance over the past three years 6 had been

Crores to Rs.6650.83 Crores. 71.12%.This

FIGURE 3 GROWTH OF MOTOR INSURANCE OVER THE PAST THREE Y EARS

Motor Insurance for the past Three years in In dia 43930729 50000000 30083880 283798 90
Motor Insurance for the past
Three years in In dia
43930729
50000000
30083880
283798
90
0
2008-09
2009-10
2010-11
No of Polices
Motor Insurance Premi um for the past Three Years in India 20000.00 14566.47 3 9350.31
Motor Insurance Premi um for the
past Three Years in India
20000.00
14566.47
3
9350.31 10291.5
10000.00
0.00
2008-09
2009-10
2010-11
Total Premium
Rs in Crores

Table 3

CAR INSURANCE POLICI ES AND CLIAMS OVER THE PAST THRE E YEARS

         

Total

Total

 

Sl.No

Year

No of

Polices

Total

Premium

Rs in

Crores

Total

Claims

Claims

paid

Rs in

Crores

Incurred

Claims

Rs in

Crores

Total

incurred

Claims

ratio

 

2008-

           

1

2009

6383695

3886.59

1165928

2337.82

2492.88

64.14

 

2009-

           

2

2010

7138559

4722.89

1537282

2901.08

2950.80

62.48

 

2010-

           

3

2011

10100109

6650.83

2276950

3962.81

4278.53

64.33

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International Journal of Man agement (IJM), ISSN 0976 – 6502(Print), I SSN 0976 –

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FIGURE 4

6510(Online), Volume 3, Issue 2, May-August (2012) FIGURE 4 7138559 10100109 6383695 No of Polices 2008-09
7138559 10100109 6383695 No of Polices 2008-09 2009-10 2010-11
7138559 10100109
6383695
No of Polices
2008-09
2009-10
2010-11

Car Insurance Policies over the past three years

6. INCREASING COST OF M OTOR INSURANCE IN INDIA

The cost of Motor insura nce had gone over the years. Even recently gi ving in to the long pending demand of the g eneral insurance companies, the Insurance R egulatory and

Development Authority (IRDA) of India has hiked the third party motor insura nce premium 9

by 10-65% across private and

insurance regulator has also agr eed to the industry demand of annual review of third party premium rates. The premium of Private cars and two wheelers have been incr eased by 10% while for commercial vehicles th e hike is 65%.

commercial vehicles with effect from April 2 5, 2011. The

The response to the hike from the Insurance Industry is that KG Krishnamoorthy Ra o, managing director and chief executive o fficer, Future

welcoming the hike, said that the quantum of t he increase is

not sufficient given the loss rati o in the commercial vehicle segment at 190% . "Ideally, the increase should have been 85-10 0%," he added.

Generali India Insurance, though

Earlier talking to MON EY TODAY, Amarnath Ananthanarayanan, ch ief executive officer, Bharti AXA General In surance, had said the third party premium in th e commercial sector should be increased at le ast by 80%. The third party insurance premiu m rates have

been increased after a gap of 5

regulator observed that "long i ntervals between rate revisions cast an avoida ble strain on policyholders as well as on the i nsurance companies. Premiums need to be revie wed regularly

depending upon the average frequency of claims for each

A Bajaj Allianz Genera l Insurance spokesperson said that the fact th at IRDA has agreed to review the third party r ates on yearly basis comes as a big relief to the industry.

motor insurance cover - cover against damage to one's own

vehicle (own damage insurance) and third party insurance which covers the ins ured person if he is sued or held legally liable f or injuries or damage done to a third party. Thir d party motor insurance is mandatory by law a nd the premium rates are still under government control.

years. In a circular issued on April 15, 2011, the insurance

claims which have been awarded by the v

rious courts,

class of vehicle and inflation amongst o ther factors."

There are two kinds of

I am having a car and t wo wheeler for the past 14 years. The cost o f Insurance is always on the rise. Though the I DV decreases over the years the premium rate n ever seems to

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May-August (2012)

change much. In the Figure 5. I had given the comparison of Insurance premiu m 10 I had paid for my car (Ford Figo, Hatch B ack) and my Two Wheeler (Hero Honda 100c c).For the car

which I purchased on 2009 the

IDV of the vehicle is Rs.335160 ,Rs.319200 respectively. I have not taken up th e premium of

the first year as that is from a premium. And for my two wheeler 871,796,792 and 822 whereas

the Insurance premium for the past four year s are Rupees

to 17150.The

details of discounts and premiu m exclusively for the vehicles are shown in T able 4. I still remember the premium I paid f or the Two wheeler in 2005 was around Rs.8 00 only. This

had not changed much even the IDV of th e vehicle had

ged. Say for

instance if the Cover was Rs.2 L akhs ,the value of Rs .2 Lakhs is not the same in 2012 as in 2008 due to the inflation and oth er reasons. Then why the premium had not chan ged much? I had been driving vehic les for the past fifteen years and never met wit h an accident and claimed insurance for eithe r the two wheeler or car. I had taken myself a s an example only for a reference and this is th e case of so many vehicle owners in India.

clearly shows that the premium declined. And the coverage for

different Insurance Company which still cha rges a higher

premium for the past two years are Rs.8530 an d Rs 8350 the

the IDV had decreased from Rupees 22020

the Third Party Liability had also not cha

FIGURE 5 PREMIUM FOR A SAM PLE CAR AND TWO WHEELER INSU RANCE

383515 400000 335 160 319200 300000 200000 100000 10073 8338 8243 0 2009-10 2010-1 1
383515
400000
335
160
319200
300000
200000
100000
10073
8338
8243
0
2009-10
2010-1 1
2011-12
Car Insurance Premium and ID V for the past
three years
Premium Amount…
I DV…

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Two wheeler Insurance P remium and IDV for the past 4 years Premium A mount
Two wheeler Insurance P remium and IDV
for the past 4 years
Premium A mount
in Rs
30000
22020 20607 19600
17150
20000
10000
538
565
496
457
0

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TABLE 4

CAR INSURANCE OVER THE PAST THREE YEARS

Name of the Car

FORD FIGO

 
 

Model

2009

 

Type

HATCHBACK

 
           

Total Premium

   

Sl.

No

Year

Premium

Amount

in Rs

IDV

in Rs

Ratio

Between

IDV/Pre

mium

Disco

unts

Amount(Inclu

ding Third

Party Liability

and tax)

in Rs

Ratio

Between

Total

Premium/I

DV

Name of

the

Insurer

               

Future

1

2009-

10

10073

383515

0.0263

12408.00

0.032

General

India

 

2010-

             

2

11

8338

335160

0.0249

20%

8530.00

0.025

Royal

 

2011-

           

Sundaram

3

12

8243

319200

0.0258

25%

8380.00

0.026

 

TWO WHELER INSURANCE OVER THE PAST THREE YEARS

 
 

Name of

 

the Two

HERO HONDA (SPLENDOR)

 

wheeler

 
 

Model

2005

 

Type

100CC BIKE

 
           

Total

   

Premium

Sl.

No

Year

Premium

Amount

in Rs

IDV

in Rs

Ratio

Between

Premium

/IDV

 

Discou

nts

(No

claim )

Amount(Inclu

ding Third

Party Liability

and tax)

Ratio

Between

Premium/I

DV

Name of

the

Insurer

 

in Rs

 

2009-

             

1

10

538

22020

 

0.0244

 

35%

871

0.040

 

2010-

           

2

11

565

20607

 

0.0274

 

50%

796

0.039

ICICI

 

2011-

           

Lombard

3

12

496

19600

 

0.0253

 

50%

792

0.040

 

2012-

           

4

13

457

17150

 

0.0266

 

50%

822

0.048

The main concern about the premium charged for Motor Insurance is that there is no marked difference in the premium between the vehicle met with accidents and the vehicles do not involve in accidents other than the discount (No Claim Bonus) for the insurance for the

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vehicle, please note that there is no discount for TPL. Why there is no much difference in the premium for the vehicles involved in accident and the vehicle not involved in accident?

FIGURE 6 NOTHING OTHER THAN THAT?

not involved in accident? FIGURE 6 NOTHING OTHER THAN THAT? And to add much to the

And to add much to the woe, the person involved in an accident any number of times can buy a new car / motor vehicle, can get the no claim bonus if the new vehicle doesn’t involve in any accident. Only the vehicle involved in accident is not eligible for no claim bonus, the insurance companies never bothers about the person who is the main cause for accidents. It is the need of the hour ,that the Government and the Insurance companies shall take note of this dire situation and have a detailed analysis for the cause in increase of the Motor Insurance Premium and take necessary steps to give the due benefits to the vehicle owners who do not involve in accidents/do have no claims.

7. CAUSES FOR INCREASING COST OF MOTOR INSURANCE IN INDIA

Inefficient underwriting: Claims ratios are high among Indian non-life insurers, especially government-owned insurers, due to less efficient underwriting practices. Private-sector firms have significantly lower claims ratios than public-sector players 11 . Underwriting ratio, like the ‘combined ratio’ industry benchmark, it measures the percentage of premiums an insurer pays out in claims and expenses. The lower the ratio the better, since a higher ratio means expenses is eroding more premium revenues. Notably, when insurers were earning steady and substantial investment income, they could remain profitable by offsetting weakness in underwriting ratios with investment gains. After losing investment income in the crisis, many insurers have refocused on the fundamentals that drive the underwriting ratio.Insurance underwriters evaluate the risk and exposures of potential clients. They decide how much coverage the client should receive, how much they should pay for it, or whether even to accept the risk and insure them. Underwriting involves measuring risk exposure and determining the insurance premium that needs to be charged to insure that risk. The function of the underwriter is to protect the company's

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book of business from risks that they feel will make a loss and issue insurance policies at a premium that is commensurate with the exposure presented by a risk. Growth of Commission and Acquisition cost: Commission and acquisition costs grew in 2008, fuelled by motor insurance. Acquisition costs have been increasing as firms expand their distribution networks. Commission expenses have also risen due to increasing competition in the non-life segment. Acquisition costs for public-sector players are about two times that of private sector players. Risk on return on investments: Strong returns on safe investments have helped Indian non-life insurers to offset underwriting losses. India’s non-life insurers are largely invested in government securities, which helped mitigate crisis-related losses and has guaranteed above-average returns in recent years. However, infrastructure- fund investments in 2006-08 did generate significant loss.

Fraud: There have been fraudulent claims at many a times. This naturally affects the claim ratio of the Insurance companies which in turn affects the genuine buyers.

Irrational Evaluation Costs: The valuation of the damage caused to the motor vehicles depends on the valuer .There may be possibility of bias in evaluating the costs.

Young Drivers, Drunken Driving: Major portion of Accidents occur due to drunken

driving and reckless driving by young drivers. But for not enabled for no claim bonus they were not affected in any way and their insurance premium is not hiked. Driver Behaviour and Irresponsible Driving: The attitude of Driver like reckless driving, over speeding, Tailgating and improper driving by not following the rules leads to traffic accidents , claims which in turn leads to increase in the insurance premium of all. Geographical Location: The geographical location wherein the vehicle certainly affects the probability of accidents and accident costs. The vehicle which is mostly driven in urban areas , the probability of involving in an accident is more and as per some studies the accident costs increases 13 with traffic density. In the same way , vehicle driven in hilly terrain is more prone to accident. A study conducted by Edlin and Karaca-Mandic 14 provided estimates of the size of the accident externality from driving. They found that traffic density increases accident costs substantially when measured by insurer costs or insurance rates. The state of the existing legal framework, deficiencies in the process of generating accident data and data sharing, and the enforcement of safety regulations in the motor transport industry are the most serious structural impediments to the operation of the Indian commercial motor insurance market.

8. EFFECTS INCREASING COST OF MOTOR INSURANCE IN INDIA:

The increasing cost of Motor Insurance may lead to the vehicle owners drive without insurance, at the places atleast where the enforcement of law is not that strict. Without driving insurance may lead to hit and run cases where the innocent may be affected.

This may lead this kind of drivers to adopt illegal ways to escape from the hands of

law. This will spoil of the moral of the public. Inefficient and irresponsible drivers left unpunished may lead to continue the same practice of driving.

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Due to the increase in cost of insurance which is a burden for the people who drive on their own , very less kilometres per year and drive safely without accidents will have aversion in purchasing another vehicle .

9. REMEDIAL MEASURES TO CONTROL THE INCREASING COST OF MOTOR INSURANCE:

By encouraging online system for new insurance and renewal of insurance on line

system may be encouraged which in turn will reduce the commission costs. The Insurance companies should invest the money in a safe but effective way to avoid

losses and earn as much as possible gains. The fraudulent claims should be avoided and punished severely if found out. The evaluation of damages should be uniform by following a standard practice with out any bias. The motor insurance industry in India should perform a critical role needed to enhance road safety by taking measures like penalizing poor driver performance through increased premiums or denial of cover. For liability insurance in India it is the vehicle, not the owner or driver, which is insured. Thus it is the vehicle’s accident record that impacts on the experience rating aspects of the insurance premium. Consequently, an owner or driver with a bad accident record can replace the vehicle and thus avoid an adverse experience-rated premium increase.

It is recommended that switching to a system where experience-rated premiums attach

to the owner and the driver, not to the vehicle, be taken up as a matter of high priority by IRDA. The drivers commits accidents and who drive in irresponsible ways like driving without license or permit, over speeding, not following the Traffic rules, Tailgating and other such mistakes should be booked and this should be intimated to the Insurance Company or some common organization ,in a way by which the premium for their next insurance shall be increased.

IRDA should also explore the creation of a motor insurance pool for bad drivers who

have been denied cover by the insurance industry. The vehicles with necessary safety devices like airbags, ABS with EBD and other active and passive safety features shall be given reduction in premium. The Government should insist insurance companies to give considerable discounts in premium for the above of type of vehicles. According to the Insurance Institute for

Highway Safety, Electronic stability control could prevent nearly one-third of all fatal

study

estimates the ESC’s benefit-cost ratio as ranging from 4.1 in France up to 8.0 in Germany 16 . Though many insurers do grant lower premiums for safer cars and discounts for safety equipment. However, it is plausible that the current level of discounts offered today by insurers is lower than is socially optimal. Insurers can adjust the premiums to the marginal risk of driving by charging the drivers that drive more a higher premium. This is called the Pay As You Drive (PAYD) 17,18 premium system. As mentioned above, this is expected to induce a significant and efficient reduction in driving and traffic accidents.

The underwriting shall be done in an effective and efficient manner.

IRDA should initiate the development of an integrated claims database.

crashes 15 .

One

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The insurance premium may be charged according to the region in which the motor vehicle is mostly driven. Higher premium for metros and hilly areas and lower premium for other places 19 .

CONCLUSION The Government of India and the Insurance Regulatory and Development Authority, though working effectively in controlling the Insurance Companies the motor insurance premiums are on the rise to the despair of the people. The Government and IRDA should take necessary initiatives to allow the vehicle owners who drive safely without involving in any accidents to ripe the benefit by giving discount in premium considerably. Further, vehicles with all necessary safety features shall be given considerable discount in premium paid. Insurance premium may be fixed based on the distance driven by the vehicle annually 20 . The drivers involved in accidents and reckless driving should be dealt severely and the insurance premium should be hiked according to the offence. It is the responsibility of the Government to take all effective initiatives to ensure that the insurers feel secured and satisfied with the premium they pay.

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1. Annual report 2010-11, IRDA, India , accessed through www.irda.gov.in.

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www.transport.rajasthan.gov.in/PDF%20Files/

3. History of insurance in India, Ref: IRDA/Gen/06/2007 , Dated 12-07-2007.

4. Tapen Sinha , ‘CRIS Discussion Paper series’’ An analysis on the Evolution of Insurance in India.” CRIS Discussion paper -2005.III.

5. The Motor Vehicle Act 1988 of India .

6. Summary Data of Public Data for Public and Private Sector Insurance-accessed through www.irda.gov.in accessed on July2012.

7. Automobile Industry in India, accessed through www.en.wikipedia.org/Wiki/Automative_ Industry

8. Indian Automotive sector snap shot 18 th November 2010.

9. Business Today, May 7 2011, Dipak Mondal , India hikes the Third Party Motor Insurance premium by 10-65% accessed through

"http://businesstoday.intoday.in/search.jsp?searchword=Dipak%20Mondal&searchtyp

e=text&searchphrase=exact&search_type=author"

10. Insurance Premium receipts from Royal Sundaram for car Insurance and ICICI Lombard for Two Wheeler insurance.

11. World Insurance Report 2011 ,Chapter 1,Efficiency Model Shows Insurers have ample room to reduce Operational expenses and Acquisition Costs

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13. Noam Noked, Providing Corrective Subsidy to Insurers for success in reducing accidents.

14. Aaron S.Eldin and Rinava Karaca-Mandic, Erratum:’’ The Accident Externality from Driving”,115 4,J.POL E CON,704-705(2007) 15. Insurance Institute for Highways Safety, News Release accessed through http://www.iihs.org/news/rss/pr061306.html . 16. Herbert Baum Sören Grawenhoff and Torsten Geißler, Cost-Benefit-Analysis of the Electronic Stability Program (ESP), Summary Report (Institute for Transport Economics at the University of Cologne, 2007).

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17. Naval Saini, Indianzing Usage -based Motor Insurance, accessed through www.freewebs.com/navalsaini/ /PAYD_article_submission.pd

18. William Vickrey, Automobile Accidents, Tort Law, Externalities, and Insurance: An Economist’s Critique, 33 LAW AND CONTEMPORARY PROBLEMS 464 (1968)

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