Insurance Companies force to car manufacturer to reduce car repair

Bajaj Allianz has convinced auto makers to make small changes in the process and supply child parts at service station and include high end equipment to reduce repair costs.

Denting are very common to include into insurance claim and increase cost of repair because of labour. The insurance company claims that in a four-year car a dented door is replaced, the owner will have to bear half the cost because of depreciation. But if the dealer had hi-tech dent removal equipment, the repairs would be done at a fraction of the cost.

All private companies are making use of data and approaching manufacturers. “We have been in continued dialogue, encouraging them to introduce child parts and bring down costs,” said Gaurav Garg, MD & CEO, Tata AIG General Insurance.

Source: TimesOfIndia