Auto insurance costs set to fall

Automobile insurance is likely to get cheaper once the regulatory authority IRDA puts in place its detariffing structure.

Similarly, Mediclaim policies are likely to be dearer, feels the business head of (commercial insurance) of HDFC Chubb General Insurance, K V Prasad.

Commenting on the post detariffing scenario in general insurance industry at a meeting here today, Prasad said that car owners with good maintenance and driving track record were likely to be immensely benefited from this.

"The owner of a car who drives himself will be the biggest beneficiary. The car which is operated by both the owner and driver will be at a slightly higher risk category. On the other hand there will be factoring for the commercial vehicles," he said.

Prasad was participating in a workshop on risk management organised by the city-based by Heritage Insurance Solutions.

Prasad said he was confident that medical insurance could be slightly dearer than what it presently.

"The whole dynamics of the industry will change after the detariffing. Some will gain and some will lose," he added.

However, he refused to comment on the strategy of HDFC Chubb on post detariffing scenario or on future strategy of the company.

Sources in the insurance sector told Business Standard that private sector companies were expecting around Rs 150 crore premium income each in 2004-05.