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Old 6th July 2010, 18:34   #1
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Default You claim insurance and no renewal next year!

Dear all,
I had a vehicle insurance with Bajaj Allianze for two years running for my Palio here in Hyderabad. It was to expire early this month. When I called them to find out the premium amount, they bluntly told me that since I had made a claim earlier this year, they are not interested in renewing the policy! In fact, I have been pursuing the matter a week prior to the expiry, but they kept dragging the issue of informing me this until the last day. Eventually I went to the National Insurance.

Is it the norm of insurance companies that if you make a claim they do not renew the policy? What is the use of paying them so much money when we do not get any benefit. Is there any corrective measures I need to pursue with regard to the attitude of the company in this instance? Or, is it their right to deny cover?

Any suggestion will be appreciated.

Regards.
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Old 6th July 2010, 18:42   #2
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A behaviour that has been heard of from some of the pvt insurance company players. Also for vehicles that are older than 5 years. I dont think it is allowed.

@RJVora, what do you say ?
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Old 6th July 2010, 19:01   #3
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Yes, the insurer has the right to deny cover if it believes that the risk is high. Again how they calculate risk is internal to them and can hardly be questioned for private players.
What has happned to you is definitely not fair. If it would have been US, most of the reputed players would have asked for a higher premium but would not have denied cover. But then this is India!
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Old 6th July 2010, 19:05   #4
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Quote:
Also for vehicles that are older than 5 years. I dont think it is allowed.
+1; I once approached Iffco Tokio to take a cover on insurance for my 2 decade old RX & they said they've insure only newer model motorcycles & not RX. When I pointed out that they'd RX100 mentioned on their website, they asked me to take the motorcycle for evaluation to one of their centres with no guarantee that an insurance will be covered.
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Old 6th July 2010, 19:05   #5
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Originally Posted by condor View Post
A behaviour that has been heard of from some of the pvt insurance company players.
I tried calling other private players. It looks like there is a cartel. In all probability they would have called up Bajaj Allianze and known my status. When these private players called me back, they came up with exorbitant quotation, knowing pretty well that I am helpless because I didn't have much time left before the renewal. I should have started my quest much earlier, only if I had known this, so as to avoid the last minute rush. I was under the impression that renewal was only a routine affair.
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Old 6th July 2010, 19:10   #6
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Approach public sector companies like National Insurance. You have more than a fair chance of getting a policy at reasonable terms.

Murthy
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Old 6th July 2010, 19:22   #7
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Approach public sector companies like National Insurance. You have more than a fair chance of getting a policy at reasonable terms.

Murthy
Yes, that's what I did. Walked into the nearest National Insurance office. The person there calculated and came up with a quote almost similar to what I paid the previous year. A bit of haggling, and he came up with a reasonable figure. He said he couldn't lower it any more since there was no No Claim Bonus. Fair enough, I thought.
What we have here is the private players with they swanky offices manned by people with glib talk, driven by ideas incubated in IIMs. The only motive: fill their coffers. Ultimately, it is juggernauts like National Insurance or Oriental Insurance that come to our rescue. I actually didn't feel bad paying a premium almost equal to the previous year's knowing that the govt. gets the benefit.
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Old 6th July 2010, 19:40   #8
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Wow, this is news to me. I have BA as well and I have made a claim, so looks like they could deny renewal for me as well.

Did you go through the BA sales guy affiliated with your dealership? My BA insurance was provided for free by Ford and I'll make sure I raise a stink at Ford as well if renewal is denied.

But having said that, pvt. companies indeed exist to fill their coffers and they do have a right to not continue doing business with you based on your risk profile. What they should have done is raise the premium (after setting NCB to zero, calculating new IDV, evalutaing your risk profile etc) rather than sending all your money away to a competitor. What was your claim amount?
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Old 6th July 2010, 20:02   #9
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What was your claim amount?
Total claim was less than Rs. 12000. The claim was carried out through MyTVS. It went smoothly.

The day before the expiry, I received a call from their Pune office. The guy said the same thing as what others at their office at Hyderabad was saying: due to the absence of NCB, it is difficult to extend the cover! When I asked if his was the final word on the renewal, he struck a conciliatory note and said if I paid a "loading charge", my policy would be renewed. I asked him what this "loading charge" is and how much that would be. He said someone from their Hyderabad office would call up and inform me. That call never came and I was running out of time. I didn't want any break in the cover. (I am not sure if this is the case with regard to vehicles. I know this for sure with regard to health cover.)
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Old 6th July 2010, 20:13   #10
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When I went for my car's renewal this year, I decided to try insurance from Maruti as I had certain discount that I wished I could claim from them. The dealer told me that they cannot renew my insurance as my car is 7 years old. I didn't wait much longer, I just got my insurance renewed at oriental insurance for a NCB of 35% without any questions asked.
I have now decided to go in for oriental or national insurance for all my insurance purposes.
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Old 6th July 2010, 20:26   #11
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Quote:
lejhoom (You claim insurance and no renewal next year!) : It looks like there is a cartel. In all probability they would have called up Bajaj Allianze and known my status.
Cartel ? Possible. BA calling up others ? Dont think so. The others would have probably guessed that BA has refused your coverage, and hence responded in a pre-mediated fashion.

Quote:
SDP (You claim insurance and no renewal next year!) : Yes, the insurer has the right to deny cover if it believes that the risk is high. Again how they calculate risk is internal to them and can hardly be questioned for private players.

What has happned to you is definitely not fair. If it would have been US, most of the reputed players would have asked for a higher premium but would not have denied cover. !
1 claim does not make a coverage risky. Not for a 12k claim. Risk calculations may be internal, and they can hide behind the term called "policy" which you would not be able to question.

Higher premium is already there by the loss of NCB. So it is not that the companies are doing you a favor by continuing coverage.

On an another note, I have heard of these same pvt companies providing the NCB if the claim was with another company. Say you were with ins company A & had a claim in one year. Next year, you would not be eligible for the NCB. But if you tried company B, then they would have given you the NCB, since they were gaining a customer.
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Old 6th July 2010, 20:41   #12
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This is exactly what i am afraid of with entry of private players in indian market. not just this private player, but all pvt players for whom we have welcomed with open heart!

Is there a provisional for we consumers to know WHY from insurance company? legally?
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Old 6th July 2010, 22:21   #13
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@mjothi: It may take you five years at least!
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Old 7th July 2010, 03:05   #14
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I have comprehensive insurance for a 10 + year old M800 from Tata AIG in Bangalore.

Have made 3 claims in the 5 years that I have been buying my insurance from them. One was quite large(30K +) and involved an apron+fender replacement when my friend crashed the car. Never had a problem with renewal or claims processing.
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Old 7th July 2010, 08:46   #15
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My experience with ICICI Lombard was good enough even after I made a claim although not a huge amount Rs 5K & had been renewing my earlier car and taken insurance for the new car from them without any hassle.

@vora bhai - can you confirm on this no renewal tactis by pvt insurers in the wake of any claim. Guess this is a double edged sword used by Insurers.
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