New Year's bonanza: Use discounts to enhance your insurance cover

Use money saved via premium reduction to buy add-on covers that will make your motor policy more comprehensive

Private insurance companies such as Bajaj Allianz General Insurance and ICICI Lombard General Insurance have reduced premium rates for the private car segment by 5-15 per cent. Several more may follow suit in the coming days. Insurers say they have reduced the premium due to the rolling out of the goods and services tax (GST) and improvement in overall efficiency. According to brokers, premiums were reduced because insurers are saving on costs after introduction of the motor insurance service providers (MISP) circular, which capped distribution commissions. Experts say that while the windfall is welcome, car owners should use the savings