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Old 19th February 2014, 16:07   #1
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Default Insurance claim? Pay a little extra and retain your No-Claim Bonus!

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I'm sure quite a few us would have faced this, that when you meet with an accident, it's not just the car which gets damaged. You even lose your No Claim Bonus.

Reliance car insurance has come up with this new add-on where one can retain the NCB even after one claims for damage. Let me explain how:

Please note: These rates have been shared by the insurance agent and can vary based on multiple factors.

NCB increases every year:
1st year: Regular premium
2nd year: 20% NCB
3rd year: 25% NCB
4th year: 35% NCB
5th year: 45% NCB
6th year: 50% NCB. (Max limit of NCB)

NCB redemption policy from Reliance can be purchased only when you have 25% NCB and above. Which means only 3rd year onward.

Rate Example: Maruti Swift Dzire Zdi (MH 02 registration)
Note: IDV can me increased by will, to a fixed limit, resulting in an increase in premium.

1st year (Fresh Policy): IDV = 7,16,938/- & then the insurance premium = 15,905/-
2nd year: IDV = 1st year IDV - 10% & then the insurance premium = 13,000/- (With 20% NCB)
3rd year: IDV = 2nd year IDV - 10 or 15% & then the insurance premium = 11,300/- (With 25% NCB)

Now in the 3rd year, since we have 25% IDV available, we can opt for the NCB redemption policy. The premium with this addition will be ~12,500/-

Effective cost increase of Rs. 1,200/-

This Add-on cover ensures that in the unfortunate event of a Single claim up to an amount, not exceeding 25% of the IDV, No Claim Bonus earned by you remains protected for the future, at the current eligible percentage, on renewal of your policy with us, instead of becoming 0% under normal policy.

Last edited by parrys : 19th February 2014 at 16:14.
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Old 19th February 2014, 16:43   #2
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Parichay,

This add on has been there for quite some time now. Many Insurers such as Future Generali, Tata AIG, Bharati Axa do offer this add on along with the normal insurance. Of course they cost additional to the normal premium but are offered cleverly disguised as predetermined bundled packages along with other addons. The dealer offered insurance which we feel is expensive than market insurance is because it includes these add ons offered as packages.

The FG insurance on my Punto has this add on.
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Old 19th February 2014, 21:12   #3
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Default Re: Insurance claim? Pay a little extra and retain your No-Claim Bonus!

I have been getting a similar feature from Tata Insurance for the last two years now. I think that this kind of a thing has been in existence from quite sometime now. I just renewed my policy with Tata today for my car, and I was told that this feature in Tata is applicable to the plastic and glass parts if they are claimed only once during the one year period in which the policy is in force.

Last edited by mints21 : 19th February 2014 at 21:18.
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Old 12th April 2016, 15:24   #4
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Default Re: Insurance claim? Pay a little extra and retain your No-Claim Bonus!

I need some opinion on this, although I am not sure if this is the right thread.

My Swift's bumper and fender have taken a minor hit last week (2 deep 2-inch scratches on fender and lots of scratches (12-15 or more) on the bumper, accumulated over time) and I am thinking of getting the car back to original condition via an insurance claim. Both the front bumper and fender can be repainted (after proper sanding, filling, etc.) but I don't want to take any risk with local paintshops as this is a relatively new car.

Should I raise a claim with this policy and lose NCB or take NCB and claim in the next policy? Also, how much percentage of price is covered by insurance in plastic as well as metal parts? Will they replace the part or repaint is possible? How much is the difference in each case (in the amount actually paid from our pocket) and which is the better option?

Car was purchased in August 2014. NCB of current policy is 25% and current insurance provider is Bharti Axa. Please let me know what all details and calculations are required.

I will post the pictures of damage, if needed, in some time.
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Old 12th April 2016, 16:33   #5
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Quote:
Originally Posted by swift_guy View Post
Should I raise a claim with this policy and lose NCB or take NCB and claim in the next policy? Also, how much percentage of price is covered by insurance in plastic as well as metal parts? Will they replace the part or repaint is possible? How much is the difference in each case (in the amount actually paid from our pocket) and which is the better option?
Thumb rule: If the cost of repairs is greater than the NCB amount to be saved next year and if pocket does not permit, raise a claim.

In your case the bumper repaint alone will cost Rs 4000/- (assumption), deduct 50% on paint, so you will have to shell Rs 2k. Fender even a small repair + repaint will cost close to 5k, so your contribution should be easily around 2K. Add 1.5K as compulsory deductible. So net cost to you would be around 5K. This is after the claim raised. Without it, the cost could be easily around 10K. Surely you would not be saving 10K in NCb during next year;s renewal. So best option would be to raise a claim.

IMHO, if the purpose is to just bring the car back to its original glory I think that's a hasty step since you would not guarantee the car to be nick free after the repairs. Take an informed decision.

The post should have ideally been in this thread:
http://www.team-bhp.com/forum/indian...es-ask-me.html (Automobile Insurance Queries? Ask me)
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Old 12th April 2016, 17:40   #6
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Default Re: Insurance claim? Pay a little extra and retain your No-Claim Bonus!

MODS - Please move Post #4 onwards to this (Automobile Insurance Queries? Ask me) thread.


Quote:
Originally Posted by ghodlur View Post
Thumb rule: If the cost of repairs is greater than the NCB amount to be saved next year and if pocket does not permit, raise a claim.

In your case the bumper repaint alone will cost Rs 4000/- (assumption), deduct 50% on paint, so you will have to shell Rs 2k. Fender even a small repair + repaint will cost close to 5k, so your contribution should be easily around 2K. Add 1.5K as compulsory deductible. So net cost to you would be around 5K. This is after the claim raised. Without it, the cost could be easily around 10K. Surely you would not be saving 10K in NCb during next year;s renewal. So best option would be to raise a claim.
Thanks for the information. Premium for the current policy was around 12k, so I am sure that the net repair costs would be higher than NCB.

A friend mentioned that it is better to claim with the next year's policy. If I claim now, I will lose this year's NCB and God forbid if something happens in the next year due to which I have to raise a claim in the next policy also, I will lose NCB again. He says that if I claim in the next policy (after August), I will save current policy's NCB and will be able to make a claim again in the next policy without worrying about that year's NCB (which is anyway gone!). So I am thinking of raising a claim after August. What is your opinion on this?

Quote:
IMHO, if the purpose is to just bring the car back to its original glory I think that's a hasty step since you would not guarantee the car to be nick free after the repairs. Take an informed decision.
The second option I have instead of raising a claim is to get the parts repaired (+repainted) at some local paintshop. The quality of repair work in these paint shops is shoddy and far from factory standards. Quality of paint remains a gamble as it fades off very fast, even though the painter says "Sir, Dupont. Best quality." during work. I have been thinking of claiming insurance since around a month as the bumper has got a serious number of visible scratches (more than 15 I think, all around 0.75-2 inch) and it hurts every time I walk towards the car. An auto-rickshaw driver banged from the left side recently, which resulted in two long scratches (and also a minor dent at those places), which are deep (sheet metal exposed, thankfully no rusting yet) and visible. I will revert back with repair costs tommorow (if done through a local painter).
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Old 13th April 2016, 08:05   #7
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Quote:
Originally Posted by swift_guy View Post
So I am thinking of raising a claim after August. What is your opinion on this?
Honestly you are consoling yourselves to live a little longer with the scratches, that's totally upto you. If you are renewing in August 16, then it makes sense to wait till the renewal, claim the NCB and then plan for the claim + repairs. I hope you do have zero depreciation add on cover which will make your outgo a little lesser.

I would suggest to stick to authorized workshop for the repairs rather than the local paint shop.
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Old 13th April 2016, 14:14   #8
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Default Re: Insurance claim? Pay a little extra and retain your No-Claim Bonus!

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I would suggest to stick to authorized workshop for the repairs rather than the local paint shop.
Thanks. And yes I do have zero dep cover.
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Old 1st May 2016, 20:47   #9
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Default Re: Insurance claim? Pay a little extra and retain your No-Claim Bonus!

My car was involved in an accident yesterday. A Nano T-boned my car. Both the cars were not fast so the damage to my car is to outer panels only, on the rear door and the panel behind that. Went to a FNG today and he gave me quote of 4500 to fix it. Now the question is should I go through insurance route?

My car is 5 yrs old and there have been no claims so far so NCB is 50%. I plan to keep the car for couple of more yrs only. I was thinking of using the NCB while buying the new car.

So should I take insurance route or do it on my own?
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Old 1st May 2016, 22:39   #10
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Default Re: Insurance claim? Pay a little extra and retain your No-Claim Bonus!

I don't think you should claim the insurance for Rs.4500. Anyways you have to pay about Rs.2000 for plastic part/depreciation etc, so my suggestion is don't lose your NCB.
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Old 1st November 2017, 18:20   #11
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Default Re: Insurance claim? Pay a little extra and retain your No-Claim Bonus!

Hi Guys,

An interesting point was brought up by an insurance company sales guy over the phone today.
As per him, most companies offer RSA (Road Side Assistance) for a small sum of Rs. 300 to 400.
However, he claims that if you actually happen to use this RSA then you stand to lose your "No Claims Bonus" completely - except of course for the company for which he works!!
I have never heard of this before. Thankfully have not had to use RSA but it is a question which begs an answer from the Insurance guru's here.

Thanks a lot.
SS
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Old 1st November 2017, 18:52   #12
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Default Re: Insurance claim? Pay a little extra and retain your No-Claim Bonus!

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Originally Posted by suzuki san View Post
Hi Guys,

An interesting point was brought up by an insurance company sales guy over the phone today.
As per him, most companies offer RSA (Road Side Assistance) for a small sum of Rs. 300 to 400.
However, he claims that if you actually happen to use this RSA then you stand to lose your "No Claims Bonus" completely - except of course for the company for which he works!!
I have never heard of this before. Thankfully have not had to use RSA but it is a question which begs an answer from the Insurance guru's here.

Thanks a lot.
SS
I had used Bajaj Allianz earlier with RSA. I used RSA twice, in two different years. Both times they had to send flat bed to take my car to dealer workshop. The NCB was unaffected.

So don't think what the sales guy is saying is correct.
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Old 1st November 2017, 19:11   #13
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Quote:
Originally Posted by suzuki san View Post
However, he claims that if you actually happen to use this RSA then you stand to lose your "No Claims Bonus" completely - except of course for the company for which he works!!
I have never heard of this before. Thankfully have not had to use RSA but it is a question which begs an answer from the Insurance guru's here.
He is BSing you. Tell him to give that in writing and see him make an escape.
NCB gets affected only by a claim and nothing else.
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