Mumbai,
Maharashtra, India: Kotak General Insurance, an
insurance provider in India highlights how driving record affects car insurance
premiums. Car insurance is an important aspect in India, that offers protection
in the event of accidents or unforeseen circumstances. One of the most
significant factors influencing car insurance premiums is
the driver’s record. Insurer tend to use driving records to assess risk and
determine premium rates for drivers in India.
Understanding the
driving record in India
A driving record is a
comprehensive report of a driver’s history on the road. It includes information
on traffic violations, accidents, license suspensions, etc. This record serves
as a key indicator of a driver’s risk profile and is reviewed may be by insurer
while setting premium rates.
How driving records
affect insurance premiums in India
Traffic violations: Minor traffic
violations, such as speeding tickets, failure to stop at a red light, etc.
might lead to impact on premiums. While a single minor violation might not
significantly impact rates, multiple offences might prompt insurer to raise
premiums.
Major offences: Serious
offences, including driving under the influence (DUI), reckless driving, and
hit-and-run incidents, have a major impact on insurance premiums. These
violations indicate high-risk behaviour, leading insurer to categorise the
driver as high-risk and significantly increase premiums.
Accidents: At-fault
accidents are a major factor in determining insurance premiums. Drivers with a
history of causing accidents are considered higher risk, as they are more
likely to file future claims.
License suspensions
and revocations: Having a driver’s license suspended or revoked due to traffic
violations or other offences signals
to insurer that the driver poses a high risk.
Clean driving
record: A clean driving record with no violations or accidents might lead to
lower premiums. Maintaining a clean record is one of the most effective ways to
keep insurance costs down.
To wrap up
A driver’s record is a
significant factor in determining car insurance premiums in India. By
maintaining a clean driving record and adopting safe driving practices, drivers
can benefit from lower premiums and contribute to overall road safety.
About us
Established in 2015, Kotak Mahindra General Insurance Company
Limited is one of the youngest and one of the fastest growing non-life
insurance segment in India, offering an array of products like Motor, Health,
Home etc.
On 18th June, 2024
- Zurich Insurance Company Limited (“Zurich”) announced the successful
completion of acquiring 70% stake in Kotak Mahindra General Insurance Company
Limited from Kotak Mahindra Bank Limited, following the receipt of all
necessary regulatory approvals.
The combined entity will bring
to the Indian market - Zurich and Kotak’s collective commitment to trust,
innovation, integrity, and customer service. In due course, the business will
adopt a new brand that represents both Zurich and Kotak as shareholders.
Zurich is fully committed to fostering the development and expansion of
India’s insurance sector in keeping with the Insurance Regulatory and
Development Authority of India’s (IRDAI) goal of achieving “Insurance for All”
by 2047.