[Marlon]

Just received an IRDA circular revising the Compulsory Deductible Amount

Current Scenario :

Private Car : Rs 500
Two Wheeler : Rs 50

Changed Scenario ( Not sure on the effective date , possible with Immediate Effect)

Private Car upto 1500 CC : Rs 1000
Private Car greater than 1500 CC : Rs 2000
Two Wheeler : Rs 100

[sgiitk]

They are out to fix the honest motorist who had Comprehensive Insurance and pays his insurance. They are dead scared of the truckers who make far more claims than they pay. We are essentially cross subsidising them.

[Marlon]

Originally Posted by sgiitk

They are out to fix the honest motorist who had Comprehensive Insurance and pays his insurance. They are dead scared of the truckers who make far more claims than they pay. We are essentially cross subsidising them.

Even I was suprised that deductibles for Commercial Vehicles was not increased.

This move will discourage low value claims, which is good for insurance company since their cost of settling low value claim will down.

[dhrupadh]

Is it applicable for all insurance claims or only the ones that are taken/renewed now? I am planning to make a claim and the calculation done by the service personnel included compulsory deductible as Rs. 500/-.

Wondering if he is not aware of the change or maybe its applicable only to the new insurance. Can we get a confirmation on this?

Regards
Dhrupadh

[sgiitk]

Originally Posted by Marlon

Even I was suprised that deductibles for Commercial Vehicles was not increased.

This move will discourage low value claims, which is good for insurance company since their cost of settling low value claim will down.

I have a Rs.5000 deductible on my Civic. Gets me Rs.1500 off on the final permium. Not worth claiming even for Rs.25,000 since the NCB is 50%.

[Marlon]

Originally Posted by dhrupadh

Is it applicable for all insurance claims or only the ones that are taken/renewed now? I am planning to make a claim and the calculation done by the service personnel included compulsory deductible as Rs. 500/-.

Wondering if he is not aware of the change or maybe its applicable only to the new insurance. Can we get a confirmation on this?

Regards
Dhrupadh

The IRDA circular unfortunately does not specify the effective date. May be it is left to individual insurance companies.

[MileCruncher]

Damn! Now I know the reason. Yes it became effective from 1st April on all new policies and renewals. This is apart from the increase in 3rd party liability. I just renewed on 1st April one insurance and another's up for renewal on 12th.

[tilt]

My apologies if this information is easily available online, but I was unable to find it anywhere for 2015 (including the not-very-friendly IRDA website, hence my question here:

I got a call from Bajaj Alliance soliciting my car insurance business for 2015. I am currently with someone else. Bajaj Alliance informs me that the compulsory deductible for 2015 has been revised upwards to Rs. 2,000 instead of 1,000 as was the case in 2014.

I just need to know if this is indeed correct or if Bajaj Alliance was trying to pull a fast one on me.

Thanks and cheers

[ghodlur]

Originally Posted by tilt

Bajaj Alliance informs me that the compulsory deductible for 2015 has been revised upwards to Rs. 2,000 instead of 1,000 as was the case in 2014.

I just need to know if this is indeed correct or if Bajaj Alliance was trying to pull a fast one on me.

BA is indeed pulling a fast one. There has been no revision in the compulsory deductible amount and still remains the same as existing. Ask BA guy to show the revision in writing if received from IRDA.

For vehicles less than 1500 cc it is Rs 1000 & for vehicles more than 1500 cc it is Rs 2000/-