ICICI hikes premium for diesel cars insurance by 15 percent

Recently Insurance companies have decided to increase premium rates on diesel cars. In line with this, ICICI Lombard General Insurance Company has announced to charge 15 per cent more premium for insuring cars as compared to that of petrol cars. Insurance companies justify this increased rate by saying that more risk and maintenance is involved with diesel cars as compared to that of petrol cars. 
 
ICICI Lombard VP (motor) Amitabh Jain said that average loading of 15 per cent is implemented over the petrol cars i.e. 15 per cent additional amount will be charged over the basic premium so as to cover the expenses of maintaining and securing the business. Nilesh Garg , executive director, ICICI Lombard General Insurance said that companies are factoring based on features such as age, location and model and companies are also planning to factor on demographic behaviour of the driver and the miles driven. Factorisation based on location, age and model has already been implemented however, for demographic behaviour of driver and miles driven the company is creating a database and soon the strategy will be implemented.   Furthermore, he said that the loading is not same for all model instead it will depend on the age of the model.
 
Amitabh Jain further said that they will keep the premium rates competitive. Relevant sources have reported that General insurance companies are going through steep losses in motor policy claims therefore  they are charging high rates.  ICICI Lombard Head Customer Service Sanjay Datta justifies the hike in premium rates for diesel cars by saying that  diesel cars run more than petrol cars and thus are exposed to higher risk.

Due to hike in petrol prices, people are drifting more towards diesel cars or CNG cars. To benefit from the scenario, Insurance companies decided to raise the premium rates. Moreover on 24th June, government of India also increased diesel prices by Rs 3 and LPG cylinders prices were hiked by Rs. 50. These circumstances have forced the potential customers to think whether to buy diesel cars or not? And this indeed is going to effect the business of diesel cars in India.