After a lot of negotiations with the hospitals to drop down the charges, general insurers shift their focus to the auto industry of the country on cutting the repair costs, which is mostly paid for by the insurance segment. However, the silver lining here is that auto firms have given a pretty positive reaction to this change. In last couple of years, every single private firm has developed the statistics and scale to bargain with the auto makers. Well known company, Bajaj Allianz that insures more than 15 lakh cars , has been sharing its claims data with the insurers for quite a lot of years and has been advising modifications in the procedures.
Bajaj Allianz has managed to persuade the carmakers to make some minor alterations such as supplying child parts with addition of anti-theft systems in the low-end car models and also providing service centre to encompass high-end dent eradicating equipment. Getting big daddies of the Indian car market, such as Hyundai and Maruti to supply child parts, which have helped to bring down the cost of repair substantially.
Earlier, the damage of a headlight lens was required the assembly to be replaced, which was an expensive way. According to the CEO of Bajaj Allianz General Insurance, Mr. Hemant Kaul, the firm has told the auto makers that if the auto makers fail to supply the child parts, the ownership cost goes up a notch because of elevated premium. All private concerns are utilizing the data and contacting the manufacturers. The CEO and MD of Tata AIG General Insurance, Mr. Gaurav Garg mentions that they are contacting the car makers and cheering them to supply child parts and also reduce their repair costs. The head of underwriting of ICICI Lombard, Mr. Sanjay Datta claims that they were also trying to bring about a consistency in the cost of labor and parts.
