Will New BH Series Vehicle Plate Series have an Impact on Insurance Premiums?
BH Series of number plates, recently was launched by the Govt of India, this facility can be availed by employees working in the defence ministry, banks, public sector and government departments in order to avoid the cumbersome inter-state vehicle-registration transfer procedure.
BH registration series is meant for those individuals, who have transferable jobs. You must also make sure; that you must disclose the change of registration to your insurance company.
BH Series of number plates, recently was launched by the Govt of India, this facility can be availed by employees working in the defence ministry, banks, public sector and government departments in order to avoid the cumbersome inter-state vehicle-registration transfer procedure. Even those individuals who are working in private sectors, having footprints in 4 or above states, they would allowed to use the BH series of vehicles.
These individuals can apply for vehicle registration and then pay the needed fees as well as taxes electronically. Nearing to 5 to 21% of tax is collected either by the state or central government for the sake of registration.
By introducing the new vehicle registration of Bharat series, it would help seamless transfer across the states and also will free vehicle owners from re-registration process, when they shift from one state /union territory to another, thus saving on intra-state tax, stated Aatur Thakkar, Co-founder and director at Alliance Insurance Broker.
Will the premium get affected?
When the individuals choose BH Series, we find the overall expenditure may be reduced for vehicle owners, because of tax collection only at the initial registration state and avoidance of multiple state tax collections during the transfers.
Over the long period, shifting between cities would result in claims for minor dents or theft during the shifting. But insurance companies as well as insurance brokers have declined any immediate impact on the insurance premium for the BH Series of vehicles.
BH series will not be added as a specific clause
Presently, the insurers do not wish to add the registration number as a specific clause in order to assess the risk of a vehicle. However, they may be assessing the claims incurred by such vehicles and also decide in the future as to whether there needs would be lower or higher premium would be charged for BH series Vehicles.
From the point of underwriter parameter
There would be no immediate impact on the premium for such vehicles. To look at, from the underwriting parameter point of view, we would require the assess the significance over a period and assess how it adds up-Sanjay Datta, Chief Underwriting, Reinsurance, Claims & Actuarial at ICICI Lombard General Insurance.
The registration of the vehicle does not have much impact on both 3rd party as well as own damage insurance cover, states Kapil Mehta, Co-founder of SecureNow insurance Brokers, adding that the insurance cover once taken, it would be valid across the nation. What affects the vehicle premium?
The geography of vehicle hardly does have an impact on premium. There are other factors as well, which would help in deciding the premium. Motor vehicle insurance is mandatory in India and the insurance for motor vehicle is largely based on both cost and also the age of the vehicle
Eventhough, the labour cost for repairs may be low in smaller towns when compared to the tier 1 and 2 towns, the same is not priced in the motor insurance product. In vehicle insurance, the car make, age of the car as well as total cost of the vehicle, including taxes may have a say in the insurance premium.
The lower taxes, however, may offer you some savings on insurance premium. Presently, tax for 15 years is collected upfront at the time of purchase of the vehicle. With the launch of Bh series, the tax for only 2 years would be collected. Hence, the insured declared value of the vehicle may reduce in sync along with the taxes.
Inform insurer when moving cities
If there is any change in the vehicle number based on inter-state registration, then the insured would have to inform the insurance company. This can be done, via endorsement for change, at the time of ongoing insurance period-Datta of ICICI Lombard General Insurance.
Insurance denied due to faulty registration
In any case, If your vehicle registration has not been changed within the stipulated time period say one year or so, after moving from one state to another, then the insurer would repudiate your claim as you may not be following the law of land.