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Old 22nd May 2013, 23:35   #2461
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Default Re: Automobile Insurance Queries? Ask me

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Originally Posted by Guite View Post
That does not sound logical to me. Reasons being:
1. Market value is subjective, it depends on the assessor, there is no yardstick. So it's open to debate.
2. If I know that my car's market value in less than the year-on-year percentage reduction of the IDV and if your statement is true, I would just opt for lower insured value and save on premium. This scenario is true in my case wherein IDV exceeds 3 lakh but I am getting quotes less than 2 lakh. No, the IDV is not inflated.
Definetly market value is subjective. But, a car once out of the showroom is valued slightly differently in its lifetime based on various factors like success in the market of the model, brand name & A**. From a insurance renewal point of view for most of us, it is just a straight depreciation of 10% for the first year and the subsequent %ages for the succeeding years.

IDV is something which the owner of the car has to determine, IDV is generally a band with the lower and upper limit within which a car owner is allowed to choose from. Also for cars exceeding 5 years age the IDV is arrived at by agreement & not by %age of depreciation.

Even by %age calculation of depreciation for the IDV for the Ford Flair is too high (5 lacs approx. OTR in 2005), I am not able to understand how the policy was signed in the first place. I was told point blank by many insurers, I could quote as low a IDV (within a band) by me during renewal but no way above the depreciation calculated for the vehicle.
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Old 23rd May 2013, 09:15   #2462
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Originally Posted by anandtheleo View Post
AFAIK, while calculating the total loss for a car its either the IDV or the market value whichever is lesser that is taken into consideration.
No, in case of total loss or CTL, the IDV is taken as market price thoughout the policy period without any depreciation. For cars more than 5yrs old the IDV has to be mutually agreed between the Insurer and the customer and in Shyam's case BA has deliberately allowed him to increase the IDv for which Shyam paid an additional amount over and above the normal premium. Now if the insurer tried to act smart by offering a lesser IDV in case of CTL then the Insurer has to be taken to task. I would support Shyam in his attempt to get even with BA.

Attached below is the snapshot of TL/CTL related terms which I am sure will be available in every car Insurance policy,
Quote:

IDV of vehicles beyond 5 years of age and of obsolete models of thevehicles (i.e. models which the manufacturers have discontinued tomanufacture) is to be determined on the basis of an understandingbetween the insurer and the insured. IDV shall be treated as the 'Market Value' throughout the policy period without any further depreciation for the purpose of Total Loss (TL)/Constructive Total Loss (CTL) claims. The insured vehicle shall be treated as a CTL if the aggregate cost of retrieval and/or repair of the vehicle, subject to terms and conditions of the policy, exceeds 75% of the IDV of the vehicle.
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Old 23rd May 2013, 10:41   #2463
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Originally Posted by anandtheleo View Post
I checked the value of the car in the used car valuation of carwale.com (general barometer). It comes to around 1,25,000 for a excellent condition car. Please don't mistake me for asking, but what was the reasoning behind going for a higher IDV than the market price of the vehicle? Why pay more premium when you could have paid lesser over the years.
Its because of more sentimental reasons. It's my first car. It was the car which stood with me all good and bad days and supported me alike as good as born for me. Never gave me any trouble in its life time. It became like a family member. All these developed a kind of attachment to it. I also took extreem care on the car. It never went to any road side mechanic. It was always serviced at authorized service centre for so small things such as replacing a bulb or side mirror.

I used to be out of country more frequently for extended periods. All though I had a gated private parking space, I was a bit concerned about the posibility of car theft. I wanted to be insured to the maximum in such case. I am a person to pay more premium and buy peace during tough times. I even covered passengers in the car at higher premium (2,00,000/- per head).

About 18yrs before, My scooter was stolen and then insurance company (I guess oriental insurance) paid me peanuts as it was insured for a lower value for saving premium. I had a tough time those days without a bike and plan of buying a new bike by adding little more money were shattered. That experience probably acted back of the mind as a catalyst to keep IDV at maximum and buy peace end of the day.


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Wouldn't the insurance company think that someone would deliberately create a accident and & claim insurance for the higher IDV.
This looks more cinematic to me. I dont think anyone will risk life for little lessthan 5 lakhs. People around accident scene, police and highway patrol team, every one said samething that I am absolutely fortunate to have survived in that accident. I repeat survived. I am not stopping BA to make any further investigation in this regard. The probelm is they are not abiding by the contract they signed for.

Quote:
Originally Posted by anandtheleo View Post
AFAIK, while calculating the total loss for a car its either the IDV or the market value whichever is lesser that is taken into consideration.

For e.g someone may purposefully reduce the IDV value to pay a reduced premium, in that case even if the market value is higher the insurance company would obviously pay only the IDV value.
As per their contract, IDV is market value for the entire policy period.
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Old 23rd May 2013, 12:20   #2464
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Quote:
Originally Posted by shyam29june View Post

Its because of more sentimental reasons. It's my first car. It was the car which stood with me all good and bad days and supported me alike as good as born for me. Never gave me any trouble in its life time. It became like a family member. All these developed a kind of attachment to it. I also took extreem care on the car. It never went to any road side mechanic. It was always serviced at authorized service centre for so small things such as replacing a bulb or side mirror.

I used to be out of country more frequently for extended periods. All though I had a gated private parking space, I was a bit concerned about the posibility of car theft. I wanted to be insured to the maximum in such case. I am a person to pay more premium and buy peace during tough times. I even covered passengers in the car at higher premium (2,00,000/- per head).

About 18yrs before, My scooter was stolen and then insurance company (I guess oriental insurance) paid me peanuts as it was insured for a lower value for saving premium. I had a tough time those days without a bike and plan of buying a new bike by adding little more money were shattered. That experience probably acted back of the mind as a catalyst to keep IDV at maximum and buy peace end of the day.

This looks more cinematic to me. I dont think anyone will risk life for little lessthan 5 lakhs. People around accident scene, police and highway patrol team, every one said samething that I am absolutely fortunate to have survived in that accident. I repeat survived. I am not stopping BA to make any further investigation in this regard. The probelm is they are not abiding by the contract they signed for.

As per their contract, IDV is market value for the entire policy period.
Yes, the sentiment value of "the first car" is something dear to lot of us. Please don't mistake me that I questioned your accident incident, I was just wondering about a hypothetical scenario. Hope you get the IDV value of the car, do arm yourself with knowledge from IRDA site and other websites which will help you.
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Old 23rd May 2013, 14:40   #2465
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Originally Posted by shyam29june View Post

The estimated repairs cost given by Ford is Rs.5,61,000/- whcih is very much exceeding entire IDV. Therefore claim should be considered as CTL/TL.
Shyam, its a clear case of Total Loss and not even CTL. Stand by Total Loss.


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Originally Posted by shyam29june View Post
Why should I consider this option when I can claim total IDV as per policy. Legally, Does BA has the option to offer this scenario?
Yes now you shouldn't, it was just an option.

Cash Loss is in the act, every company offers this. This kind of option is very famous in commercial vehicle claims. We have done many in the past.
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Old 23rd May 2013, 15:25   #2466
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Default Re: Automobile Insurance Queries? Ask me

Thankyou all BHP'ians for your valuable support.

Update
=====

I escated my concern to Bajaj Allianz online grievances forum. But I have not got any reference number for my escalation. Therefore, I do not have any proof that, I escalated to them. IRDA will look into the matter only after 2 weeks after the issue is escalated to respective company grievances cell.

On the other side, the BA Surveyor sitting silent.

What I must do now.

What other methods will they use to pressurize me for some settlement other than Total Loss. How long can I leave my car at workshop? Do I need to pay some money for parking there ? If so, how long they will aloow for free parking?

If issue does not get settle with the free parking time frame, then can I move the car elsewhere (safe area) until the settlement is done? What would be the concerns from BA?

Thanks in advance for your replies.
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Old 23rd May 2013, 16:58   #2467
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Quote:
Originally Posted by shyam29june View Post
What other methods will they use to pressurize me for some settlement other than Total Loss. How long can I leave my car at workshop? Do I need to pay some money for parking there ? If so, how long they will aloow for free parking?
Hold on to your horses, no need to start strategising even before you know the outcome. Regarding the parking space, I dont think you will be asked to pay anything till the matter is resolved. The workshop will be responsible for keeping your car subject to space availability, if not they themselves will escalate to the Insurance co.
But stick to your guns and as F50 said nothing less than Total Loss would work for you. All the best.
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Old 31st May 2013, 18:39   #2468
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I have a 5 yr old City ZX (NHC). The car has been insured by Honda Assure till now. However, since a new Civic is being bought in the family, I plan to transfer the NCB to that and get a new policy for the NHC. Now my query is whether I should go for Honda Assure or some other insurance provider, given its entering it's 6th year?
Thanks in advance.
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Old 4th June 2013, 18:29   #2469
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Default Re: Automobile Insurance Queries? Ask me

I have a honda city 1.5 E MT. Its turning 1 year this July 2013.
Looking for insurance renewal options.


Got reply from different companies ( Reliance , Bajaj allianz, ICIC lombard etc ) for different types of policies ( Zero dep, normal etc )

Really confused whether to go for normal policy for the least premium, or pay higher amount for Honda assure and go for zero dep policy for the least premium.

My usage of the car is very less ( < 500 kms inside the city ) , once in a while long drive . I have a proper guarded parking at home.

Guys help me out. Thank you.
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Old 4th June 2013, 20:14   #2470
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Quote:
Originally Posted by rakku46 View Post
I have a honda city 1.5 E MT. Its turning 1 year this July 2013.
Looking for insurance renewal options.


Got reply from different companies ( Reliance , Bajaj allianz, ICIC lombard etc ) for different types of policies ( Zero dep, normal etc )

Really confused whether to go for normal policy for the least premium, or pay higher amount for Honda assure and go for zero dep policy for the least premium.

My usage of the car is very less ( < 500 kms inside the city ) , once in a while long drive . I have a proper guarded parking at home.

Guys help me out. Thank you.
Your usage or parking has nothing to do with Insurance renewal, you will have to renew the insurance before the end of year. Since yours is just one year old car suggest go for the zero dep for that extra peace of mind. Regarding the Insurers, try to compare the premiums as well as the services offered. My personal suggestion keep away from ICICI and Reliance, they may offer lowest premiums but have heard some bad stories when it comes to claim settlement.

BTW with whom did you have the Insurance from for the first year? Was it Honda Assure - how was the experience?
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Old 4th June 2013, 20:42   #2471
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I have a 5 yr old City ZX (NHC). The car has been insured by Honda Assure till now. However, since a new Civic is being bought in the family, I plan to transfer the NCB to that and get a new policy for the NHC.
From my experience it is a bit difficult to get new insurance on old car, especially if there are dents and scratches.

Quote:
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My usage of the car is very less ( < 500 kms inside the city ) , once in a while long drive . I have a proper guarded parking at home.
Less usage does not necessarily translate to less chance of accident, and the guard has no role to play in it. Zero dep makes a huge difference on your bank balance incase of accident repair. How much extra would zero dep be for a 5 year old car? Maybe 2 to 3k? I recommend go for zero dep policy.
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Old 4th June 2013, 21:04   #2472
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Thanks for the reply guys.

I had a honda assure insurance from IFFCO TOKIO. Had no claims till now, so cannot comment on the experience.

The cheapest Zero Dep policy was quoted by Bharti AXA of around 14500 rupees.

Honda assure IFFICO TOKIO quotes 14700 for a normal policy.

Rest , the cheapest of the normal policies was offered by Bajaj Allianz of 9800 rupees.

What i noticed is that the approved garage list is almost the same for all insurance companies.

Now , I m thinking of going for Bharthi AXA Zero dep over Honda Assure normal policy.
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Old 5th June 2013, 09:00   #2473
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Originally Posted by Guite View Post
How much extra would zero dep be for a 5 year old car? Maybe 2 to 3k? I recommend go for zero dep policy.
There are not many Insurance co which offer zero dep for a 5 yr old car, if the car is in the 5th year then it might be the last year to opt for a zero dep. The zero dep option value does not change with the age of the car, its the same for a new car as well as an aged car.

Quote:
Originally Posted by rakku46 View Post
the cheapest of the normal policies was offered by Bajaj Allianz of 9800 rupees.
Whats the IDV they have quoted? I hope you have a rough idea about the IDV based on age depreciation. Bharati Axa ia relatively new in the car insurance market so tread carefully. The claim settlement process with them is not yet known.
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Old 6th June 2013, 11:00   #2474
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The insurance for my 99 Santro expired on May 30 last month. It was with Reliance and no claim has been taken from the last three years. I'm looking for some other company to get her insured this time, the NCB amounts to 45% and the IDV is 50,0000/-.

PS: the car is in very good condition

I'm seeking the advice of fellow members on this issue at the earliest since running short of time.

Guys please suggest and help me

Thanks

Last edited by metropolis : 6th June 2013 at 11:02.
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Old 6th June 2013, 11:10   #2475
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Guys, wanted to check which is the best vendor to provide Cashless facility at Honda Service Station??
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