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Old 27th November 2014, 09:54   #3046
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Default Re: Automobile Insurance Queries? Ask me

One of my colleagues is about to renew his car insurance.
We had a debate over the IDV and I wanted some clarification regarding the same.

While getting an on-line quote, he had an option to increase the IDV (to a certain extent). He can decrease it too.
I told him to increase it so that he has more cover

One other colleague then told him that increasing the IDV is useless.
As per him, when we have a total loss claim, they will not give the IDV(increased) but they will calculate the depreciated vehicle value and give that amount.

As per my experience with a total loss claim, I had got the full IDV.
Of course, I had not increased the IDV, any time during the previous 3 renewals of the car for which I was claiming a total loss.

But for my current car, I have increased the IDV a couple of times in the 4 renewals that I have made till now.
In such cases, If there is a total loss claim, will we not get the full IDV? Have I just paid more premium without any use?

Edit: I checked a few pages of this thread but didn't find a concrete answer. If there has been a discussion on this topic in this thread and anywhere else, it would be helpful if anyone can lead me to it

Last edited by hemanth.anand : 27th November 2014 at 10:03.
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Old 27th November 2014, 10:32   #3047
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Default Re: Automobile Insurance Queries? Ask me

Once the policy is issued (Higher or Lesser value) insurance company has to pay money as per the IDV only.

I have also seen that insurance company playing around with the Higher IDV policy. (Bargain game in claims) but it is wrong.

Meaning of IDV is Insured Declared Value. - I hope this word itself is self explanatory.
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Old 27th November 2014, 10:33   #3048
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Quote:
Originally Posted by hemanth.anand View Post
One of my colleagues is about to renew his car insurance.
We had a debate over the IDV and I wanted some clarification regarding the same.

While getting an on-line quote, he had an option to increase the IDV (to a certain extent). He can decrease it too.
I told him to increase it so that he has more cover

One other colleague then told him that increasing the IDV is useless.
As per him, when we have a total loss claim, they will not give the IDV(increased) but they will calculate the depreciated vehicle value and give that amount.

As per my experience with a total loss claim, I had got the full IDV.
Of course, I had not increased the IDV, any time during the previous 3 renewals of the car for which I was claiming a total loss.

But for my current car, I have increased the IDV a couple of times in the 4 renewals that I have made till now.
In such cases, If there is a total loss claim, will we not get the full IDV? Have I just paid more premium without any use?

I think you are right. The whole point of paying a higher premium for the higher IDV is to get that amount in case of a total loss claim. What is the reason for paying a higher premium for a higher IDV if the question of paying back that higher amount does not arise? That makes no sense.
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Old 27th November 2014, 11:20   #3049
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Default Re: Automobile Insurance Queries? Ask me

Quote:
Originally Posted by rjvora_2000 View Post
Meaning of IDV is Insured Declared Value. - I hope this word itself is self explanatory.
Quote:
Originally Posted by ajaypjayaraj View Post
What is the reason for paying a higher premium for a higher IDV if the question of paying back that higher amount does not arise? That makes no sense.
Yes that is what I was debating, but he says it is not the reality.

If anyone has made a total loss claim after having increased it previously, they can clear this confusion.
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Old 27th November 2014, 11:47   #3050
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Default Re: Automobile Insurance Queries? Ask me

Quote:
Originally Posted by hemanth.anand View Post
Yes that is what I was debating, but he says it is not the reality.

If anyone has made a total loss claim after having increased it previously, they can clear this confusion.
Since you have paid for higher IDV with an higher premium, you are fully entitled to claim up to the IDV value of the vehicle insured in case of total loss.
This is an option given by an Insurer and as such the Insurer is liable to comply with the policy agreement.

Many insurers will try all sort of tactics to deny claim, if the insurance company is unrelenting on that, you can always complain to the Insurance Ombudsman which will intervene in such cases.
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Old 27th November 2014, 11:47   #3051
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Default Re: Automobile Insurance Queries? Ask me

Quote:
Originally Posted by hemanth.anand View Post
Yes that is what I was debating, but he says it is not the reality.

If anyone has made a total loss claim after having increased it previously, they can clear this confusion.
Sir, Absolutely no confusion on this one. Talk to some good insurance company surveyor and you will get this information.

As I told you insurance company bargains but that is a baseless thing. If at all they don't want to pay the IDV, they have to inform you at the time of taking the policy, they can't tell at the time of claim.

I can say of one company that is Bajaj: - They have a IDV chart with them of all the make & model, while taking the insurance you can change the value of that table only by 5% (+/-) they will issue the policy, but more change in the IDV is simply not allowed at the time of taking the policy. If you force them, they will not do the business. I personally work with 4 different insurance company but only Bajaj has this system.
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Old 27th November 2014, 11:50   #3052
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Quote:
Originally Posted by rjvora_2000 View Post
Meaning of IDV is Insured Declared Value. - I hope this word itself is self explanatory.
Quote:
Originally Posted by hemanth.anand View Post
But for my current car, I have increased the IDV a couple of times in the 4 renewals that I have made till now.
In such cases, If there is a total loss claim, will we not get the full IDV? Have I just paid more premium without any use?
Quote:
Originally Posted by ajaypjayaraj View Post
The whole point of paying a higher premium for the higher IDV is to get that amount in case of a total loss claim. What is the reason for paying a higher premium for a higher IDV if the question of paying back that higher amount does not arise?
Gentlemen,

Quoting the standard definition of IDV from the Policy wording doc and this is common for all Insurance co. Pls note the wordings highlighted in bold.

Quote:
The IDV of the Private Car (and accessories if any fitted to the Private Car) is to be fixed on the basis of the manufacturer’s listed selling price of the brand and model as the Private Car insured at the commencement of insurance/renewal and adjusted for depreciation
Ideally IDV needs to be calculated on the basis of the manufacturer's current selling price of the model (ex showroom cost only) times the depreciation applicable based on the years of ownership. The manufacturer's cost if changes on yearly basis then the thumb rule of every year depreciation % of 10 is not applicable. This is known to all insurance co, but still they allow the vehicle owners to fix the IDV (increase/decrease). The advantage for Insurer is higher premium and for the owner is a false sense of satisfaction that the car is insured for a higher amount. But the true reality is reflected when there is a case of total loss, thats the time when the Insurance co come to their senses and start calculating the IDV based on the real calculations. If owner debates this then the IRDA ruling is shown to the owner. This way the owner cant approach the IRDA since he is at fault for over insuring the vehicle than the actual. Insurers go scot free when owner agrees to Insurance co terms of total loss calculations.

Therefore it is a religious exercise which every vehicle owner must do is to calculate the correct IDV based on the prevailing car prices at the time of renewal
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Old 27th November 2014, 12:37   #3053
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Default Re: Automobile Insurance Queries? Ask me

Quote:
Originally Posted by hemanth.anand View Post
One of my colleagues is about to renew his car insurance.
We had a debate over the IDV and I wanted some clarification regarding the same.

While getting an on-line quote, he had an option to increase the IDV (to a certain extent). He can decrease it too.
I told him to increase it so that he has more cover
Quote:
Originally Posted by ghodlur View Post
Ideally IDV needs to be calculated on the basis of the manufacturer's current selling price of the model (ex showroom cost only) times the depreciation applicable based on the years of ownership. The manufacturer's cost if changes on yearly basis then the thumb rule of every year depreciation % of 10 is not applicable. This is known to all insurance co, but still they allow the vehicle owners to fix the IDV (increase/decrease). The advantage for Insurer is higher premium and for the owner is a false sense of satisfaction that the car is insured for a higher amount. But the true reality is reflected when there is a case of total loss, thats the time when the Insurance co come to their senses and start calculating the IDV based on the real calculations. If owner debates this then the IRDA ruling is shown to the owner. This way the owner cant approach the IRDA since he is at fault for over insuring the vehicle than the actual. Insurers go scot free when owner agrees to Insurance co terms of total loss calculations.

Therefore it is a religious exercise which every vehicle owner must do is to calculate the correct IDV based on the prevailing car prices at the time of renewal
Thank you guys for bringing this up, as I am about to renew the insurance of one of my cars. After reading today's posts on this thread, I thought it is better to hear from the insurance guys itself regarding this. Hence, just had a chat with a couple of them.

This is what I understand. IDV is based on the ex-showroom price of your car (when you purchased it). At the time of purchase you already have a 5% depreciation applied to it. From then on, every year an added 10% depreciation is applied. This is the ideal case.

Now you have an option to go down by another 10% of the IDV as calculated (by the above method) or go up by 15% or 20%. This is the range of IDV shown. But he himself said that it is better not to go for the higher IDV as compared to the ideal one. He explained something like, they go by the market value at the time of total loss and from how the guys explained it, I did get a feeling that if I have to get that higher IDV in case of a total loss, I would really have to be behind those guys and be lucky. He said that they would even hesitate to declare total loss so easily (depending on the case ofcourse), especially if the vehicle is insured at 20% higher than it's ideal IDV. The lower 10% (the lower range) from ideal IDV is normally preferred by those guys who are about to sell their car, as per them.

As some one mentioned above, if the agreement says you have paid premium for the higher IDV, ideally the insurance company is supposed to pay you that amount, but it is not as straight forward as that, as per what I understand now.

Last edited by ajaypjayaraj : 27th November 2014 at 12:38.
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Old 1st December 2014, 14:34   #3054
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Default Re: Automobile Insurance Queries? Ask me

Hi Guys.
Please help me to solve this.

I have registered a claim for damaged side mirror, fender and tyre.
In case of tyre, I contacted Surveyor who told I can buy from outside.
But the Service Center guy say, tyre has been replaced and we can't remove now.
Tyre is useless JK Tornado for Rs.4000 for which I need to pay 50%.

What do I need to do?
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Old 9th December 2014, 16:13   #3055
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Default Re: Automobile Insurance Queries? Ask me

Quote:
Originally Posted by balavj27 View Post
Hi Guys.
Please help me to solve this.

I have registered a claim for damaged side mirror, fender and tyre.
In case of tyre, I contacted Surveyor who told I can buy from outside.
But the Service Center guy say, tyre has been replaced and we can't remove now.
Tyre is useless JK Tornado for Rs.4000 for which I need to pay 50%.

What do I need to do?
Please talk to surveyor once again, ask him of which amount he will pay 50%. I mean, what type of Tyre he will pay.

I don't think service center guy will take back the Tyre. you should have told him earlier that you will buy Tyre on your own.

One thing you can do is, take this Tyre and sell it back in the market and go for the Tyre you want and pay the difference. I am hopeful that you will get the good buy back value for this Tyre as this would be an unused Tyre.
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Old 9th December 2014, 16:18   #3056
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Default Re: Automobile Insurance Queries? Ask me

Yes, once the tyre has already been fixed, they would not take it back, unless you had explicitly told them about your decision to buy the tires outside.

As @rjvora_2000 suggests, take it to a outside tyre shop and get it exchanged if you wish, else keep this as a spare and use the remaining ones.

What make are the other 3 tires on your car?
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Old 11th December 2014, 14:47   #3057
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Quote:
Originally Posted by rjvora_2000 View Post
Please talk to surveyor once again, ask him of which amount he will pay 50%. I mean, what type of Tyre he will pay.

I don't think service center guy will take back the Tyre. you should have told him earlier that you will buy Tyre on your own.

One thing you can do is, take this Tyre and sell it back in the market and go for the Tyre you want and pay the difference. I am hopeful that you will get the good buy back value for this Tyre as this would be an unused Tyre.
Surveyor was fine with submitting separate bills. Hence, had an argument with the supervisor. He first said no. Then, I had to politely discuss the manager and told my concerns about the tyres. It is useless to put one new tyre with 3 bald tyres. He helped me to solve this issue and removed their tyre.

Quote:
Originally Posted by ILTDrive View Post
Yes, once the tyre has already been fixed, they would not take it back, unless you had explicitly told them about your decision to buy the tires outside.

As @rjvora_2000 suggests, take it to a outside tyre shop and get it exchanged if you wish, else keep this as a spare and use the remaining ones.

What make are the other 3 tires on your car?
Problem Solved. Replaced three bald JK tyres(26500kms) with four Yokohama E400 185/70 R14. Billed one tyre separately and submitted in Insurance office.

Thanks for your replies.
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Old 11th December 2014, 17:24   #3058
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Friends - Need a quick help here. My Safari Insurance is due for renewal and the existing one is valid till the 22nd of this month. I called up Royal Sundaram, the current insurer for a quote etc..

Now, here's a small twist - My car was on company lease and I had promptly transferred it to my name last year. Royal Sundaram is now asking me to get a NOC to make sure I get the NCB for the fresh insurance. Meanwhile I had left my previous organization and not sure whom to go and ask for the NoC.

Is this how it works? Is there a way out to get the NCB without the NoC ? It might have got covered elsewhere in this thread, but when I saw 200 pages, I thought it better to ask this even at the risk of this being already covered. Any insights will help me. Thanks.
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Old 11th December 2014, 17:54   #3059
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Default Re: Automobile Insurance Queries? Ask me

Guys ,

I am looking at booking a new car in exchange for the ( not so ) Amaze. Havent decided on which one . I have a NCB of 20% on this car and I would want to transfer this to the new vehicle .

I know this was discussed earlier , but somehow not able to source the same .

This is Iffko Tokyo and their customer care is just useless . They arent able to answer my queries on NCB at all
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Old 11th December 2014, 18:00   #3060
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Guys ,

I am looking at booking a new car in exchange for the ( not so ) Amaze. Havent decided on which one . I have a NCB of 20% on this car and I would want to transfer this to the new vehicle .

I know this was discussed earlier , but somehow not able to source the same .

This is Iffko Tokyo and their customer care is just useless . They arent able to answer my queries on NCB at all
It is a pretty simple process. You need to have them provide you with a NCB retention letter, they will charge you pro-rata for the current car insurance in lieu of the insurance and this NCB retention letter can then be used to get discount on your new car insurance.
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