Laughable Auto Insurance

My car driver got into an accident last month.

This was the second such instance in the past 7 months of car ownership, and during both instances I was not in the car. This time around the car was hit from behind by a water tanker - couldn’t believe that ! Given the beautiful metallurgy of Japanese cars, a small peck can lead to substantial damage. In the case of my Toyota Innova, the back door had to be completely replaced.

I was obviously upset, and demanded that the owner of the lorry company turn up at the Goregaon Police Station. I myself went to the Police Station along with my wife in the damaged car within an hour of the accident.

Here comes the fun part. After about 10 minutes of waiting, the police told me that I could go back home, not to bother about anything - and they would take necessary action against the errant driver. I saw some smile cross the face of the lorry owner from a distance as he was standing outside the station. I tried telling the police that I was prepared to stay and file the complaint but they collected all the papers and asked me to go home.

I left, and my driver later returned with the complaint written out in Marathi language and duly stamped. I was told by the driver that the owner of the water tanker company would be fined by the police for causing the accident. I asked about the insurance claim and was told that the lorry had a third-party insurance cover.

Now comes the second part of the developing story !

I went to Toyota Showroom, conveniently located very close to where I live in Mumbai. The insurance company representative was also luckily available when I went. I told him that this accident was purely caused by the water tanker, and since I was covered by a comprehensive insurance policy, my insurer should claim the repair costs from the water tanker’s insurance company.

He looked puzzled. I asked him why - was it not normal - why would I lose my No Claims Bonus for no fault of mine ? He promised to check with his Head Office and came back after 15 minutes and said that the only way that could happen was if I filed a court case against the owner of the water tanker company and his insurance company. That would take a long time, and so it would be prudent if I could claim against my own insurance !

This stunned me. India does not have basic rules clearly established. For no fault of a driver, the NCB would vanish. Since the guy who caused the accident had only third-party insurance his premium was very low (around Rs 1,000 for such a huge tanker !), and his insurance company won’t even get to know that he was involved in an accident since there would be no claim of any sort. The worst thing which could happen would be a lowly police fine in the range of Rs 1,000.

This incident told me that India is still a third-world country. Apart from known issues such as infrastructure problems, indifferent attitudes of people and government machinery, corruption, etc., there is clearly also lack of globally accepted rules of engagement, be it in insurance or any other field. Enforcement is a major issue even if there are clear rules.

Not only my NCB disappeared completely, I also had to pay Rs 9,490 for the differential component on my policy which accounts for depreciation of the car and damage of plastic parts ! This was ludicrous to say the least. So this would mean that anyone can damage another person’s property and then go scot free almost. No wonder the lorry owner was smiling.

Well this is the New India, which still remains as the Old India.

Have a wonderful weekend, and drive aggressively with abandon folks (or use James Bond tricks with contraptions which could shoot out from the back, or eat out the rims of the neighbouring cars),

Cheers,

Vijay Srinivasan
5th May 2007
Mumbai

Published in: on May 5, 2007 at 8:32 am Comments (5)
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My Car

Toyota Innova 2.5V Diesel SUV or people-carrier is a good car for Indian road conditions. No automatic version is available, so I had to suffer the shaky manual version. I was given to understand that automatics would land into serious trouble in the hands of Indian drivers that you engage to take you around, because they will use the auto stick in exactly the same way that they use the manual gear.

Not wanting to risk trouble, I went for the manual version, that being the only one available anyway. The search for car took more than 6 weeks, finally I settled on Innova. At Rs 36 (SGD 1.30) per litre of diesel, and with good fuel efficiency, the car does well, I should say, though noisy and sometimes not good at low speeds. In any case, one cannot complain in an environment wherein the external noise anyway drowns whatever feeble attempt one makes to make one’s presence felt.

There are a lot of Innovas on the road, and at Rs 12 Lacs (SGD 42,000) it is a good deal overall for the high-end version with some bells and whistles. That is roughly half the cost of a similar car (Toyota Picnic) in Singapore. However, I hope there is some competition in the near future. Unlike in other countries, Toyota seems to be reticent in India, and seems to be losing ground to Honda and other Indian car types.

Well, let me blog about that on another day, this is a balmy Sunday afternoon in Mumbai, and I plan to see some HBO shortly.

Have a wonderful week ahead folks,

Best Regards

Vijay Srinivasan
10 December 2006
Mumbai

Published in: on December 10, 2006 at 10:43 am Comments (2)
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Cars, Road Rage and Character

BMW

In keeping with the brownian motion of my thoughts, I decided to write about car drivers in the fine city of Singapore where I have lived for the past 12.5 years, and have switched 3 cars in this period. Science-challenged folks reading this post are invited to read about Brownian motion theory at Brownian Motion.

When a nation arrives at economically developed status in a short span of less than 20 years, as Singapore did between independence in 1965 and the mid-eighties, people around the world just marvelled at the focused governance and economic management of a city-state which was basically marshland in most areas in the early sixties. The population had a rapid rise from a few hundred dollars in GDP per capita to more than 20,000 dollars GDP per capita, bringing alongside general well-being in material wealth all around. Cars were especially symbolic of this phenomenon, though only one of the 5 “C”s that were chased in the pursuit of status recognition in Singapore society during the late eighties and nineties - these being, Cash, Credit Card, Country Club, Cars, and Condominium !

When I arrived in September 1993 (incidentally, I moved from Kuala Lumpur where I had lived for couple of years by that time), I drove into Singapore in my Proton Saga 1.3L manual car, made by Proton of Malaysia. I was just amazed at the skyscrapers along ECP, being tall condominiums, and had to struggle to keep my eyes on the traffic. The roads were fabulous, even better than Malaysia’s roads - and the traffic was orderly to my untrained eyes. I saw new cars all around me and I wondered “where were all the old cars ?”. Little did I realise that Singapore moves faster than Malaysia, and it was already an economic powerhouse, and had strange car ownership rules to keep the roads shiny with new cars. In India where I came from, cars are forever - you buy a car, and it stayed with you throughout your life, and still ran well even though the dies that were used to engineer the car were as old as independent India. But I soon found that in Singapore, you can’t be too emotional about any purchases, let alone your own car. Cars had a fixed life here, and after that life of 10 years, you either scrap the car or buy a piece of paper which would let you keep the car either for another 5 or 10 years. The government also levied additional road tax on such cars, making it uneconomical for most car users to own older cars, except for the well-heeled ones who decided to keep their emotional affinity with their older cars for their lives.

Obviously, I had to return to KL and dispose off my Proton car (WCP 8730), though nostalgically reminiscing my first days driving that car around KL and outside KL during weekends. It was a good, well-made Mitsubishi model car, with very less maintenance problems. I sold it for a good price, given the waiting time for new Proton cars !

I could not stay for long in Singapore without a car - I did use the bus system and the MRT in the early days - but the car bug bit me strong. What shocked me were the sticker prices on new cars - it was 1994 - which I thought were ridiculous by any measure. So, I decided to go look for a second-hand car. The usual classified shopping finally led me to an expert salesman who sold me a Nissan Pulsar with very little effort. My wife witnessed my purchasing behaviour, and warned me to be more circumspect in future, because she was not happy with the high-pressure sales tactics used by the salesman, and doubted that the price was inflated. I belatedly learnt that I paid a couple of thousand dollars more than I should have done, and also found that the colour of the car was wrong for a person working in a corporate organisation - it was red, I liked it, but Singapore was uptight and straight-laced in these matters - I learnt from my friends only housing contractors drive red cars. While I am normally a person not given to such innuendos, I had to worry about my acceptability in a society where I had come to make my life afresh. I could not liquidate the car so soon, but was careful in its use so as not to show it off. It was a decent car, and did well on mileage. Some minor maintenance problems were there, but none major.

During this period, I found that Singaporeans were not good drivers - it might sound strange coming from a person like me from India where the road manners and road conditions were horrible, to say the least. However, my expectation of a developed country was just that - I was shocked to see behaviour on roads in Singapore that was inconsitent with the economic status of the country. I saw order in Australian and American roads, but not in Singapore roads. People were not courteous, and assumed that if you wish to move to the right (we drive on the left side of the road) it must be because you wish to overtake, just to be one car ahead. If you wish to move to the left so as to exit from a highway, the drivers blocked you, many times forcing you to “hang” in the second left lane waiting for a break. If you raced a bit, meaning go fast, all others around you joined the race. I encountered very strange behaviour, such as cars you had overtaken for some reason, followed you wherever you went ultimately, and gave an eerie purr before leaving you in the dust. I was left wondering whether I had arrived in a country full of race car tracks and race car drivers, who followed no rules.

It was little wonder then that I saw government imposing strict restrictions on road usage and traffic control all over the island. It never ceased to amaze me that the road conditions in Singapore were constantly undergoing change, hopefully for the better, all through the years. One innovation which captured my attention was the “B” signal for public buses, which allowed them to move ahead of the rest of the traffic at key junctions. The pedestrian crossing was one place wherein I saw most Singapore car drivers showed their best behaviour, even till date. They slowed down, sometimes intimidated by the flashing yellow lights, and sometimes reminded by the fines imposed by traffic police, which were always well covered in the local press.

The time for my next car purchase just happened on its own - again, men are quite impulsive when it comes to cars - and I had this economically unaffordable fascination for BMW, without really knowing that they are a strange bunch of animals with their own brains and hearts. And, when a BMW 520i came in beautiful marble white colour from a friend and colleague at IBM who was moving to the U.S.A., I thought it would be foolish not to ride on it for atleast a few years. So, here I was in my proud white BMW, just 8 years old ! When I first rode on it, I felt like I was driving a tank - it was heavy and drank petrol off the tap as though it was a fish out of depth. I imagined that eyes turned toward me when I cruised around, but it was probably to look at the big car making some good noise showing off its age, rather than anything else.

The beauty of the BMW was that driving speed hardly affected the ride - whether it was 50 or 120 KMPH, it was a cruise no doubt. And, if you went too close to a Japanese car, you are sure to scare him a bit. Any dent will be costly for him, while it would not affect the heavy metal that much. Given that I was a little speedy driver, I had good fun with the car till it hit my pocket book on a rainy day, completely stopping in the middle of the road with a noise which sounded like it came from a hungry camel. I was a little shaken, and thought about going to the nearest workshop, but very soon realised that mine was a BMW which nobody except the original dealer would touch. Because BMW protected its cars against tampering, endowing the cars with smart brains.

Well, here comes the famous Performance Motors, the authorised dealers for BMW. Their main objective is to figure you out in a moment, while keeping their eyes trained on potential problems in your car, while simultaneusly listing all the parts needed to fix the current problems. It did not take the supervisor there to figure out that I was a first time BMW owner. He said that the problem was indeed major, and I should have taken more care before purchasing old cars - it would be critical to have them check out the car first before buying !

Well, the bill was huge, it was more than what I had spent in the last 8 years on car maintenance/repairs. Then and there I decided to get rid of BMW for good. After a few months, I went back to the safe hands of the Japanese, purchasing the tried and tested Camry, not knowing at that time that Camry was generally bought by old managers, not people on the move upwards.

I drove my Camry as though I was driving a Ferrari. It did well, and is doing well even till now - YES ! - I am still driving the same car for the past nearly 7 years, and it is a fantastic car. My regular car workshop guy tells me even today that my Camry is a great car - it should have no problem running its full tenure of 10 years. When my office colleagues sometimes made the mistake of asking for a ride in the car while on the way to a evening get together, I made sure they never forgot the ride of their life. Seat belts were not necessary when I drove the car !

I have seen a number of instances of road rage while driving all these years in Singapore, even to the extent of threatening a life ! The courts in Singapore finally made Singaporeans realise how bad it is to display road rage, when they started imposing heavy punishments for such behaviour.

I strongly believe there is a correlation between the nouveau riche status of a society and car driving/road rage. But that stage of economic status has passed by, and Singapore is now truly an advanced country in the league of the top 10 economically advanced countries. So, the bad behaviour is moderating now. People are more considerate on the roads now, to my knowledge - my recent experiences tell me that things on the road have improved somewhat. Singaporeans have to realise they live in one of the most cosmopolitan cities in the world, and their behaviour has a direct impact on the perception of all living in Singapore. I have now learnt to drive more slowly, and I wait to let other cars pass by me, though sometimes it is not necessary. Cars indeed tell the story of a people in more ways than one.

Have a great week ahead.

VIJAY SRINIVASAN
19 Feb 2006

Published in: on February 19, 2006 at 9:15 am Comments (8)
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