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Old 15th February 2016, 09:30   #3451
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Insurance experts, I had posted a query regarding buying a new insurance in another thread. Not sure if that's the right place. Just posting the URL of my post

http://www.team-bhp.com/forum/buying-car/29513-article-how-buy-new-car-india-post3913034.html

Can you please help?

Mods: didn't realize of this thread and am unable to edit now. Please excuse
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Old 15th February 2016, 20:38   #3452
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Quote:
Originally Posted by callvvijay View Post
Can you please help?
Pasting your query here:
Quote:
I'm going by this route - planning to buy my own insurance for my planned Xcent. Need some help on this -

1. What exactly is the process?
On inquiring with a couple of PSU insurance providers (New India and National), I was told that I will just have to bring in the invoice copy and they would provide me the insurance

2. One of the providers said that they will right-away issue the 'Cover-Note' - and the actual insurance will follow (in a couple of days). Is it possible to go for registration with this 'Cover-Note'? Or, the actual insurance copy mandatory for registering the vehicle?
Its good that you intend to buy the Insurance for your car on your own. Its a fairly simple process.
1. Confirm with the dealer about the ex showroom cost of the car. Pls confirm if the ex showroom cost includes any local taxes too. Also get the details of the car such as engine no, chassis no.
2. Confirm with the dealer with which Insurance co do they have a cashless tie up. Note there is always an Insurance co which has a national tie up with the manufacturer (in your case Hyundai) which means that this Insurance co will have cashless tie up with all workshops across the country. (For eg Future Generali is the Insurance co for Fiat cars).
3. Once you get the information on the list of Insurance co's visit their websites and get a quote on the premium. Pls remember your IDV for the first year will be 5% less than the ex showroom cost. Also remember, most of the Insurance co do not have an updated database on the current ex showroom cost, hence ensure that IDV is manually entered if the calculated IDV on the Insurance website is incorrect. Compare the quotes and take an informed decision.
4. Once all the required information is entered online and payment made, the cover note is generated. Note that on the cover note there is no mention of the registration details.
5. Hand over the Insurance cover note to dealer to proceed with the registration.

Hope this helps.
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Old 15th February 2016, 23:31   #3453
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Quote:
Originally Posted by ghodlur View Post

Its good that you intend to buy the Insurance for your car on your own. Its a fairly simple process.
2. Confirm with the dealer with which Insurance co do they have a cashless tie up. Note there is always an Insurance co which has a national tie up with the manufacturer (in your case Hyundai) which means that this Insurance co will have cashless tie up with all workshops across the country. (For eg Future Generali is the Insurance co for Fiat cars).

4. Once all the required information is entered online and payment made, the cover note is generated. Note that on the cover note there is no mention of the registration details.
5. Hand over the Insurance cover note to dealer to proceed with the registration.

Hope this helps.
Thanks a ton, ghodlur!

My dealer is not very open to talk about other insurance providers - and just says that I'll not be able to make a cashless claim. Any idea how good/bad would National, NewIndia or TataAIG be with respect Hyundai service?

Same as my above point - dealer is claiming that the insurance policy itself is mandatory for going for registration. And cover note wouldn't suffice.

I've got good quotes from National (15k) & NewIndia (17k) and the former is also ready to give me the insurance policy then & there. Not sure on which one to go for as I'm not very sure about their claim settlement and if they would provide cashless options. Tata AIG quoted ~20k and am negotiating with them too.
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Old 16th February 2016, 19:24   #3454
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Quote:
Originally Posted by callvvijay View Post
and just says that I'll not be able to make a cashless claim.
dealer is claiming that the insurance policy itself is mandatory for going for registration. And cover note wouldn't suffice.
The dealer is taking you for a ride. Just because you are buying insurance on your own does not mean that dealer cannot provide the information.You need to talk to them a bit more strongly. You can talk to Hyundai customer care if the dealer is acting smart in this regards.

Please note that lower Insurance premium does not guarantee better service. If the dealer is not parting with the information, visit the workshop and try to source the information from the workshop manager or staff over there.

My bad that I mentioned cover note is sufficient for registration. Its actually Insurance policy which is required for registration and IIRC a policy is issued if Insurance is bought online. Cover note is generally provided when you buy through dealer.
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Old 23rd February 2016, 21:29   #3455
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Default Re: Automobile Insurance Queries? Ask me

For my new car, I have spoken to royal sundaram, national and oriental insurance. national gave the lowest quote. Which player do you guys recommend ?
Please let me know if you think i should consider any other insurance providers.
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Old 24th February 2016, 02:55   #3456
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"At ICICI Lombard we've seen particular success with our introduction of two and three-year motor insurance policies," said ICICI Lombard's Jain, while commenting on the industry norm of having a one-year policy in motor.
http://timesofindia.indiatimes.com/b...w/51092210.cms

Has anybody taken 2 or 3 year policy? Curious to understand how NCB, IDV etc are calculated.
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Old 24th February 2016, 16:53   #3457
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A car was sold about 2 years back and it met with an accident in which the other person on the bike died. Now the car was not transfered but the person who bought the car got it insured. The driver of the car has surrendered to the police. Will the insurance company pay to the third party(the deceased family) or will they reject the claim, as the car is sold but not transfered. Can the onus of paying the compensation come the head of the registered owner. No paperwork is done as of now. How should the original owner proceed in such a case.

I didnt knew a place better then this to ask this question. Suggest me please
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Old 25th February 2016, 09:42   #3458
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Hi Insurance Gurus, need your advice on validating a reply that I got from an acquaintance who works in New India, and through whom I usually renew my car insurance:

Taking into consideration the value at 4.15 lakhs, the renewal premium works out to Rs 10510/-. Please note that there is no change in NCB slab of 50 percent, but your vehicle enter into next slab for premium ratings i.e. 6-10 years. So there is a rise on this count and two more factors add to the rise - change in third-party premium and service tax slab from 12.36 to 14.50%.

I am okay with the IDV, and the change in 3rd party premium and service tax was also expected. However, I do not understand why the NCB should be unchanged and premium should be increased for a 6-10 year car.

Is the explanation given by NIA above correct?

Cheers,
Vikram
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Old 25th February 2016, 09:50   #3459
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Default New Car insurance price ambiguity

Hi,

I am in the process of booking a new car.

I received an insurance quote from the dealership and they insisted that I take up a policy with X company since they have a tie up only with them.

On enquiring with the same X company, I directly received a quote which was substantially (about INR 18000/-) lesser than what was quoted at the dealership. The probable reason for the markup could be dealer commission.

I have requested the dealership to match X company's quote to me or cancel my booking, and awaiting their response.

Its ridiculous how much money is made by car dealerships on insurance alone, and unfortunately most buyers aren't well informed of the price disparity.

Few question I have:
1. Can a dealership say "by-party" insurance is not allowed and force a customer to take up a policy with a company of their choice?

2. Can a dealership refuse to match the quote received directly by a customer from an insurance company X. How would they then explain the mark-up to the customer?

Thanks
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Old 27th February 2016, 19:53   #3460
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Default Re: Automobile Insurance Queries? Ask me

The Insurance of our Elite i20 Asta Diesel is due for Renewal by 15-3-16.
What should be the IDV in this case? When I checked online, the IDV ranges from 4.33-6.33lakhs on policy bazaar, 5.3-6.3 Lakhs on coverfox, and 4.66-6.15 Lakhs on policybachat.

My previous IDV is 7.85Lakhs and Insurer was Bajaj Allianz (taken from Dealer as he was not letting to take Insurance from outside). But I had transferred 50% NCB from our Indigo XL while buying Elite i20 last year. Last Year Premium was Rs. 16200/-

Experts please do the needful.
Thanks in advance.

Last edited by IndigoXLGrandDi : 27th February 2016 at 19:56.
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Old 27th February 2016, 20:46   #3461
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Quote:
Originally Posted by bharath14 View Post

Few question I have:
1. Can a dealership say "by-party" insurance is not allowed and force a customer to take up a policy with a company of their choice?

2. Can a dealership refuse to match the quote received directly by a customer from an insurance company X. How would they then explain the mark-up to the customer?
1. Forcing the customer to take the insurance from the dealer depends on the number of dealers for the specific car brand in the city/locality. If its Maruti or Hyundai then the fear of loosing a customer to the competitor dealer will make him agree to your conditions. Else they will be stubborn and would not care if you would book the car with them or not. Another factor is that, bigger established dealers (called as platinum dealers) sometimes would just not worry about loosing a customer or two to retain their "commission" on the insurance. Its the smaller and new dealers who want to see their sales graph go north will allow the customer to take the policy from outside if they are not able to convince the customer

2. Dealer in most probability will refuse to match the quote brought in by the customer and would leave it to the customer to arrange the insurance on his own since they will not receive any amount to cover their activity/overheads.
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Old 28th February 2016, 12:53   #3462
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Quote:
Originally Posted by bhandary View Post
1. Forcing the customer to take the insurance from the dealer depends on the number of dealers for the specific car brand in the city/locality. If its Maruti or Hyundai then the fear of loosing a customer to the competitor dealer will make him agree to your conditions. Else they will be stubborn and would not care if you would book the car with them or not. Another factor is that, bigger established dealers (called as platinum dealers) sometimes would just not worry about loosing a customer or two to retain their "commission" on the insurance. Its the smaller and new dealers who want to see their sales graph go north will allow the customer to take the policy from outside if they are not able to convince the customer

2. Dealer in most probability will refuse to match the quote brought in by the customer and would leave it to the customer to arrange the insurance on his own since they will not receive any amount to cover their activity/overheads.
While the dealer will not be able to match the insurance quote you get from outside, they cannot refuse to sell the car to you. So you only have to insist that you will arrange your own insurance and they will have to agree. Otherwise, this will put them in hot water with the manufacturer. I have in the last 2 years bought a Volkswagen and a Renault (neither of whom have alternate dealer options in the city), both with self arranged insurance, never had a problem either occasion. The Renault dealer tried to say that since I was arranging my own insurance, they will not be able to pass on a discount offered by the manufacturer, but I firmly told him that he cannot deny me any offer from the manufacturer and they had to agree.

Last edited by reverse_gear : 28th February 2016 at 13:02. Reason: Grammar
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Old 28th February 2016, 12:59   #3463
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Quote:
Originally Posted by IndigoXLGrandDi View Post
The Insurance of our Elite i20 Asta Diesel is due for Renewal by 15-3-16.
What should be the IDV in this case? When I checked online, the IDV ranges from 4.33-6.33lakhs on policy bazaar, 5.3-6.3 Lakhs on coverfox, and 4.66-6.15 Lakhs on policybachat.

My previous IDV is 7.85Lakhs and Insurer was Bajaj Allianz (taken from Dealer as he was not letting to take Insurance from outside). But I had transferred 50% NCB from our Indigo XL while buying Elite i20 last year. Last Year Premium was Rs. 16200/-

Experts please do the needful.
Thanks in advance.
IDV on 1 year old car should ideally be 20% lower than ex-showroom price. Typically, a variance of 5% from this guidance may be OK, but not advisable to stray too much off that. No point in insuring the car for a higher value than what is represented in this table. You can refer to this depreciation table for reference:

Vehicle Ageing Depreciation Chart
  • New Car - 1st Year: Insurance done at 95% of Exshowroom Price. 5% Depreciation is Deducted
  • On 2nd Year Renewal: 20% Depreciation is Deducted. Insurance done at 80% of Original Exshowroom Price
  • On 3rd Year Renewal: 30% Depreciation is Deducted. Insurance done at 70% of Original Exshowroom Price
  • On 4th Year Renewal: 40% Depreciation is Deducted. Insurance done at 60% of Original Exshowroom Price
  • On 5th Year Renewal: 50% Depreciation is Deducted. Insurance done at 50% of Original Exshowroom Price
  • 6th Year Onward: 10% to 15% Depreciation on IDV Value of Previous Year is deducted year on year

The websites will allow you to set the IDV manually, please set that parameter as per your choice and check the quote.
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Old 28th February 2016, 15:24   #3464
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Quote:
Originally Posted by comfortablynumb View Post
Is the explanation given by NIA above correct?
That is correct. The NCB % is capped at 50% max, hence there will be no change in the %. The premium for cars with ownership more than 5 yrs will be decided by the IDV which has to be mutually agreed between the Insurer and Insured as it moves out of the depreciation table.

Quote:
Originally Posted by bharath14 View Post
1. Can a dealership say "by-party" insurance is not allowed and force a customer to take up a policy with a company of their choice?

2. Can a dealership refuse to match the quote received directly by a customer from an insurance company X. How would they then explain the mark-up to the customer?
To answer your questions serially:
1. The dealer cannot force the Insurance or the Insurer on any customer. The customer is at liberty to choose and buy the Insurance for the vehicle. The dealer many a times smartly package the discounts offered on the vehicle such that Insurance is sold to the customer at higher prices than the market values. The customer many a times is blinded by the discounts and does not bother to check the Insurance amount.

2.If the dealer cannot match the quote, that is because they know the actual quote. But many a time in the process of not losing the customer for a mere 18K approx amount, they will offer the insurance at the market value.

Quote:
Originally Posted by IndigoXLGrandDi View Post
My previous IDV is 7.85Lakhs
Your ideal IDV should be 7.065L (10% less than last year's IDV).

Quote:
Originally Posted by reverse_gear View Post
IDV on 1 year old car should ideally be 20% lower than ex-showroom price.
This would be the case if it exceeds 1 yr of ownership. If renewed within 1 yr, then the applicable depreciation is 15% of ex show room cost or in other words 10% less than last year's IDV.
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Old 28th February 2016, 20:08   #3465
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The ICICI Lombard representative told me that the NCB of 50% cannot be carried forward if I renew online. Even if I do the same, I will get recovery letter from the insurer while I file a claim. Is this true?

On policybachat, I was given a quote of 7905/- for L&T Insurance.
Should I renew online or offline?
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