Wounded by Chennai floods claims, Motor insurance cos to increase premium to 15% in metropolitans

If you reside in New Delhi, Mumbai, Chennai or Kolkata, your motor insurance policy is going to increase, thanks to Chennai floods.

As Chennai floods saw claims of over Rs 1500 crore, the motor insurance companies are treading the path carefully and have decided to make premium 15% higher.

"We will have to build in the factor of flood for all big cities that are developing fast and premium should go up by 10%-15%. Simple clogging due to rain water can enter basement parking and result in claims,” Vijay Kumar, head of motor insurance Bajaj Allianz General Insurance, told ET.

The Rs 1500-crore claim during Chennai floods was more than that of 2006 Mumbai floods claim. Experts say that higher claims in metros act like a whip, thereby increasing the premium.

(Image: Indiatimes)