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Old 9th October 2017, 08:10   #16
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Smile Re: Car insurance in India: Tied to the car or owner?

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Originally Posted by ghatotkatch View Post
A basic layman question. What happens to the insurance in the mean time after the car is sold and the new updated RC is yet to be issued?

The RTOs tend to take almost a month if not more to dispatch the new updated RC. During this time, is the new owner covered if the old owner doesn't cancel the insurance? If yes, won't it affect new owner's future premiums, in case new owner unfortunately needs to claim? If no, what option does the new owner have, especially since he can't buy insurance till he has the RC in his name?
Between the time the car is sold and new RC updated, the Insurance still lies with the old owner. Any claims by the new owner will not be accepted by the Insurance co. So any repairs in case of any accident will have to solely borne by the new owner. However the claims can be admissible through old owner.

Hence is is always advisable to initiate the Insurance transfer process at the same time as the car ownership transfer. same documents are applicable at both the places. This way the Insurance co is aware of the new ownership and sometimes may allow the new owner to claim the Insurance if needed till the time the RC transfer happens. It is also advisable that the new owner should ideally get the car on road after the RC and Insurance transfers are done. Coz in some cases the old owners might be reluctant to accept admitting a claim since they will lose their NCB in the process.
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Old 9th October 2017, 11:18   #17
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Default Re: Car insurance in India: Tied to the car or owner?

Hey Insurance experts,

I renewed a comprehensive policy for my motorcycle with Iffco-Tokio through policy bazar. Previous insurer was Bajaj Allianz. However, for some reason, the city in my address has been misquoted as 'Dhanbad' rather than 'Ranchi'. (Both these cities are in the state of Jharkhand only). Other details are all good. I mailed policy bazar and they replied back that it does not matter in process of validity or claims. So, its not yet corrected.

Need expert's advice that if it is a cause of concern or should I press them to correct the address.

Thanks.
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Old 9th October 2017, 13:05   #18
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Need expert's advice that if it is a cause of concern or should I press them to correct the address.
You need to get the address corrected ASAP. Period.
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Old 9th October 2017, 15:04   #19
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Default Re: Car insurance in India: Tied to the car or owner?

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You need to get the address corrected ASAP. Period.
Thanks! I have mailed them again to correct the same. Thanks for heads up.
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Old 17th October 2017, 15:33   #20
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Default Re: Car insurance in India: Tied to the car or owner?

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Originally Posted by GTO View Post
Not necessarily. You can also sell the existing car without insurance and use the remainder (of coverage) toward your new car.
Last week I booked a new car and am trading-in my old car (have already surrendered my old RC book smart card), and am awaiting delivery. I'm told my old vehicle will be picked up by dealer 2 days before delivery of new car.

Questions:
- I believe its possible to decline the insurance provided by the dealer and thereby reduce the on-road price (dealer's insurance premium seems overstated by approx 100% if I compare with policybazaar quotes for similar IDV, cashless, 0-depreciation, etc features)? How does one go about declining the dealer's insurance? I expect push-back from salesman. Is it possible to decline having initiated the booking (but pending final payment and delivery)?
- More importantly, is it recommended at all to decline dealer's insurance for a new car? Or would the BKM be to go with dealer's insurance for a new car (esp on a premium car, costing 20 lakhs ex-showroom)?
- I read GTO's post about transferring the value of remaining insurance (5 mths remaining) towards my new car's insurance. I forgot about this, can I raise that point now to the dealer so it gets adjusted towards my balance due amount?
- If I do decline, how do I go about buying my new policy thats effective from delivery date? I'll come to know the VIN#, engine#, etc only on delivery date. Is the expectation that I use a smartphone and book it online on the spot when taking delivery? Ouch, thats so inconvenient!

Last edited by vharihar : 17th October 2017 at 15:36.
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Old 17th October 2017, 16:31   #21
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Originally Posted by vharihar View Post
Questions:
- I believe its possible to decline the insurance provided by the dealer and thereby reduce the on-road price (dealer's insurance premium seems overstated by approx 100% if I compare with policybazaar quotes for similar IDV, cashless, 0-depreciation, etc features)? How does one go about declining the dealer's insurance? I expect push-back from salesman. Is it possible to decline having initiated the booking (but pending final payment and delivery)?
As told in the other thread, simply decline the Insurance offer or ask the dealer to match the quotes available online. Tell the dealer about IRDA's new policy on dealers selling Insurance.

Quote:
More importantly, is it recommended at all to decline dealer's insurance for a new car? Or would the BKM be to go with dealer's insurance for a new car (esp on a premium car, costing 20 lakhs ex-showroom)?
It is your hard earned money, why would you want to gift it to the dealer. You have every right to save on the costs be it car, Insurance or maintenance.

Quote:
I read GTO's post about transferring the value of remaining insurance (5 mths remaining) towards my new car's insurance. I forgot about this, can I raise that point now to the dealer so it gets adjusted towards my balance due amount?
You should ask for the NCB certificate from the old car's Insurance co. Show them the car transfer documents submitted to RTO and you will be issued a NCb certificate which you can use when buying Insurance for the new car. Will substantially bring down the Insurance premium on the new car. If dealer agrees to match the market quotes, then convey to him that you have NCB applicable so that they don't mess up by buying the Insurance for the new car without NCB.

Quote:
If I do decline, how do I go about buying my new policy thats effective from delivery date? I'll come to know the VIN#, engine#, etc only on delivery date. Is the expectation that I use a smartphone and book it online on the spot when taking delivery? Ouch, thats so inconvenient!
Before the car goes for the registration, you will need the Insurance policy for the car. So its not the delivery date which will matter. Once you know the VIN, Chassis no etc and other required details you can buy the Insurance for the car. Before you buy insurance ensure that the VIN matches with the car alloted to you through a mini PDI, just to confirm the car alloted to you is Ok in all respects and ready to be registered.
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