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Why Car Insurance Companies Fear Long Weekends and Holidays
- DetailsWritten by PolicyBazaar -
- Hits : 1793 -
Modified 29 January 2015
According to a recent study, car insurance claims see an unprecedented rise during a holiday or long weekend. The primary reason behind this is reckless highway driving. Bajaj Allianz, on an average pays 60-70% higher claim payout as compared to a normal vehicle claim during festive period or a long weekend. Average claim size for four wheelers is Rs 30,000 while for two wheelers is Rs 7,000. On a similar note, Chola MS General Insurance saw a 5% rise in motor claims in 2014 over 2013 during holidays or long weekends. They also state that claims were more during monsoon season owing to the fact that it is an accident prone season.
TATA AIG General Insurance Madhukar Sinha also faces a similar issue and says,"The average payout in such cases is at least 10 times more than a normal motor claim. City residents are not used to highway driving. Also, whenever night driving is involved, there is a higher propensity for claims."
CMD of United India Insurance Milind Kharat opines that lately there have been more number of cars hitting highway and, "During a weekday getaway drive, the general thinking of the driver is maximum utilization of the limited time period. Sometimes, this may lead to a bit of reckless driving...means risks of accidents are higher."
Delhi-Shimla highway and Mumbai-Pune corridor has been identified as accident prone zone during festive season owing to rise in claim demand from this zone. More and more people use cars as primary travelling mode for short vacations which helps save time and hassle of ticketing. However, this study clearly stresses the need of safe driving. Don’t turn a pleasurable and fun event into a tragic one. Drive carefully and stay safe.
(Source: This article has been adapted from the article "Insurance companies see higher claims for holidays" that appeared on January 27, 2015 in timesofindia.indiatimes.com)
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