Helmets Protect - All

Last week all newspapers reported the decision of the State Government of Tamil Nadu to make wearing of Helmets compulsory while riding two wheelers in the Corporations of Chennai, Coimbatore, etc. This rule would be applicable to both the driver and the pillion rider. See report.

This report was followed up with another report quoting the high incidence of head injury cases in the government hospitals in Chennai. To be precise, it reported 70 to 90 head injury cases every day of which 90% was of road accident cases.

So, it is apparent that the government has made it more safer for the two wheeler riders.

But apparently this blog talks of issues relevant to insurance. How is this issue relevant?

Simple, higher head injury results in larger third party claims and as such higher claims ratio. A lower claims ratio eventually has the result of reduction of insurance premium.

So a helmet protects all!!!

Re tariffing of Third Party Premium

There has been a delay in the promise made by yours truly to come back after the changes in Third party premium.

The Third party premium have been revised and notified. Currently the premium increase is at 70% more than the old tariff rates. This is expected to cause strain on the bottomline of the Third Party Pool which would eventually be passed on to the participating insurers.

The insurers community is not all that pleased with the turn of events, though only on expected lines

Venkat