Motor insurance premiums are expected to go down as vehicles would be less prone to accidents due to the odd-even rule in Delhi. Only half the number of vehicles would ply on the roads on a given day.

“The cars would be out on the streets only for half the number of days than before. This may bring down the risk of accidents and there is a case for premium revisions downwards.” — Mukesh Kumar, exceutive director at HDFC ERGO General Insurance.

He further added that there might be a decrease in premiums of comprehensive motor insurance cover, after evaluating the data in the next few months.

Insurance companies have submitted rates to the regulator for motor insurance of each city depending on the risks of accident and theft in the region. A vehicle’s model and age, manufacturer details, and engine capacity are among the other factors that determine the premium of motor insurance. Insurers will also now look into the risk factor based on the driver’s behavior, average speed and number of kilometers clocked on an average by the vehicle. However the plan has not been formally implemented yet.

The ban on registration of large vehicles with diesel engines in Delhi-NCR region might also affect the insurance premiums. Rao of Future Generali India Insurance said that with the reduction in numbers of such vehicles on roads, spreads would reduce and the average premiums would increase.

According to some reliable estimates, only 40-45 % of the vehicles on the Indian roads have mandatory third-party insurance. Most people take covers while getting their new vehicles registered but there are a very few who opt for renewals.