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Old 30th December 2012, 10:40   #16
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Default Re: Increasing your Car's IDV during insurance renewal -Whats your take?

Here is a ruling(4.5 years old) by the Supreme Court, in a case where the compensation amount offered by the Insurance company
was amost half of the IDV. Although in this case, the Insurer did not increase the IDV at the time of renewal.

Hats off to this guy for taking the fight all the way up to the Supreme Court

Summary of the case:
(Complete details can be found in the attached PDF)

IDV : Rs.3,54,000/-

Repair Estimated : Rs.3,37,246.59
(By Service Center after Vehicle met with an accident)

Value of the Vehicle as assessed by Surveyor : Rs.1,80,000
(Total loss)

Depreciation considered by the Supreme Court
(for 7 months for the date of commencement of Insurance) : 10,000/-

Final Order For Compensation : Rs. 3,44,000/- (Plus 25,000/- as expenses)
(By the Supreme Court)

And the Judgment
(extract from the attached PDF file):

"...It must be borne in mind that Section 146 of
the Motors Vehicles Act, 1988 casts an obligation on the
owner of a vehicle to take out an insurance policy as provided
under Chapter 11 of the Act and any vehicle driven without
taking such a policy invites a punishment under Section 196
thereof. It is therefore, obvious that in the light of this
stringent provision and being in a dominant position the
insurance companies often act in an unreasonable manner
and after having accepted the value of a particular insured
good disown that very figure on one pretext or the other when
they are called upon to pay compensation. This ‘take it or
leave it’ attitude is clearly unwarranted not only as being bad
in law but ethically indefensible. We are also unable to accept
the submission that it was for the appellant to produce
evidence to prove that the surveyor’s report was on the lower
side in the light of the fact that a price had already been put
on the vehicle by the company itself at the time of renewal of
the policy. We accordingly hold that in these circumstances,
the company was bound by the value put on the vehicle while
renewing the policy on 13th February, 2002..."

PDF File obtained from http://supremecourtofindia.nic.in/
attached for reference

Thanks
Attached Files
File Type: pdf IDV.pdf (80.5 KB, 840 views)
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Old 3rd September 2014, 13:35   #17
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Default Re: Increasing your Car's IDV during insurance renewal -Whats your take?

I have recently tried to renew my insurance and as per my conversation with the agent, the IDV agreed on between the insurer (company) and the insured (you), is final and binding on the company even if it is above market value.

What this means is, if your IDV is 3,00,000 as per the standard depreciation chart (calculated at market value of the car) but you choose to go for a higher IDV voluntarily - lets say 3,50,000 after paying the agreed premium, the insurance company is obliged to pay the 3,50,000 in case of total loss/theft or total constructive loss of the vehicle since that was the agreement between the two parties.

My logic: if you have a house or jewellery or antiques (some of these items cannot always be valued accurately as there is no set benchmark) you can have it insured for whatever value you see fit (within reasonable limits) and the insurance company has to pay that amount in-case of damages.
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Old 28th April 2015, 14:13   #18
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Default Re: Increasing your Car's IDV during insurance renewal -Whats your take?

Bumping up an old thread, but I'm in a similar situation & came across this article from last year, the author is an Exec Director at ICICI Lombard-
Quote:
It is to be noted that at the time of first purchase as well policy renewal, current selling price of the brand and model is considered for computation of IDV and not the price at the time of purchase of the vehicle. For instance, if a customer bought a particular brand and model in April 2012 at Rs.10 lakh and the current June 2014 selling price of the same brand and model is Rs.11 lakh, the insurance company would consider the current listed selling price, Rs.11 lakh, for computation of IDV. If one declares a lower IDV than the reasonable market value and were to make a claim for total loss, one would receive a lower claim amount since the IDV declared was lower. A little saving on the premium by declaring a lower IDV can thus result in much higher loss in an unfortunate event of a large claim or theft of the vehicle.
At the same time, some customers tend to declare a high IDV assuming that the claim amount will accordingly increase or it can help them if they were to sell the vehicle in the market. However, it must be noted that IDV is the maximum possible claim amount that the insurer will provide depending on the type of loss. At the time of claim processing, the insurer will consider the age of the vehicle and hence its depreciation before finalizing the claim. As such, one may end up receiving a lower claim amount despite having taken a higher IDV, and paid a higher premium.
So, the next time you renew your vehicle insurance, make sure that the IDV declared is in sync with the vehicle age and model.
Full link to the article - http://www.livemint.com/Money/jiHrDO...-your-car.html
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Old 28th April 2015, 16:41   #19
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Smile Re: Increasing your Car's IDV during insurance renewal -Whats your take?

As rightly said by the ICICI guy, one has to be very careful when deciding the IDV during renewals. Every policy document states the calculation very clearly and as mentioned below. Increasing IDV with an assumption of higher insurance protection in case of any claims is absolutely baseless. Insurance co do due diligence when it comes to claims settlement and IDV amount plays a key factor in deciding the compensation.

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
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Old 21st February 2016, 10:17   #20
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Default Re: Increasing your Car's IDV during insurance renewal -Whats your take?

Going through this thread I am convinced that higher IDV for older vehicles do not provide any extra benefit.

I am looking forward to renew my policy (comprehensive) for Maruti Alto LX (2006) with existing IDV @Rs. 77000/- + NCB 25% (National Insurance)

From online portals which let me choose IDV I am selecting Rs 69000/- as the IDV. The lowest premium I found is Rs. 2635/- from New India Assurance. Private insurers are costing few hundred more. Should I go ahead & get this policy.

Any pointers to consider for my car?
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Old 21st February 2016, 19:14   #21
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Default Re: Increasing your Car's IDV during insurance renewal -Whats your take?

A query to insurance experts.

My 2007 Civic's insurance will be due for renewal Soon. The current insurer is ICICI and the IDV is 3.34 lacs. I paid about Rs. 14k as premium. My cousin has a similar model and vintage which he got insured by Bajaj Allianz. He has an IDV of about 4.8lacs(which I feel is high) for which he paid Rs. 18k as premium. Both cases 0 percent NCB. Please let me know the fair IDV for my car for which I should go for next time as I plan to change insurer this time. Kindly advise.
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Old 21st February 2016, 19:30   #22
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Smile Re: Increasing your Car's IDV during insurance renewal -Whats your take?

Quote:
Originally Posted by wolf_lone View Post
From online portals which let me choose IDV I am selecting Rs 69000/- as the IDV. The lowest premium I found is Rs. 2635/- from New India Assurance.
If you are comfortable with Public Insurance co, then you should go ahead and buy it. I would suggest to check with National Insurance co on their website if online portal premium calculation is still same. You can also go through the terms and conditions just to be sure.

Quote:
Originally Posted by saket77 View Post
Please let me know the fair IDV for my car for which I should go for next time as I plan to change insurer this time.
Your IDV ideally should be 300600 rs. You can get the premium quotes online. Pls note since Civic is a discontinued model, the IDV has to be mutually agreed. You can refer your friend's IDV if you need to get a higher IDV.
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Old 21st February 2016, 19:43   #23
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Default Re: Increasing your Car's IDV during insurance renewal -Whats your take?

Quote:
Originally Posted by ghodlur View Post
If you are comfortable with Public Insurance co, then you should go ahead and buy it. I would suggest to check with National Insurance co on their website if online portal premium calculation is still same. You can also go through the terms and conditions just to be sure.

National Insurance is offering it for Rs. 3109/- @ IDV 66000/-.

Any reasons to avoid Public Insurance companies.
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Old 21st February 2016, 19:51   #24
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Smile Re: Increasing your Car's IDV during insurance renewal -Whats your take?

Quote:
Originally Posted by wolf_lone View Post
National Insurance is offering it for Rs. 3109/- @ IDV 66000/-.

Any reasons to avoid Public Insurance companies.
Extremely sorry for quoting National Insurance instead of New india. I meant check on New India website to confirm the same premium quote.

Their Sarkaari attitude during buying and later during claims is enough for me atleast to stay away from them.
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Old 21st February 2016, 20:20   #25
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Default Re: Increasing your Car's IDV during insurance renewal -Whats your take?

Quote:
Originally Posted by ghodlur View Post

Your IDV ideally should be 300600 rs. You can get the premium quotes online. Pls note since Civic is a discontinued model, the IDV has to be mutually agreed. You can refer your friend's IDV if you need to get a higher IDV.
Thanks for this info. As you know the spares for civic cost on the higher side, I am a little reluctant to go for low IDV as in case of a 'not so severe crash' the insurer can force me to go for total loss as the repair bill approaches 75% of the IDV. would an IDV of about Rs. 4 lacs be a bad idea? Will insurance companies develop a cold feet when it comes to actually pay for repair or total loss?

Thanks in advance.
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Old 22nd February 2016, 00:40   #26
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Default Re: Increasing your Car's IDV during insurance renewal -Whats your take?

Quote:
Originally Posted by ghodlur View Post
Extremely sorry for quoting National Insurance instead of New india. I meant check on New India website to confirm the same premium quote.

Their Sarkaari attitude during buying and later during claims is enough for me atleast to stay away from them.
Cannot blame you for that callous attitude for these sarkaari companies..

New India Assurance is asking for Rs. 3273.89/- if bought from their website for IDV 69000/-

New India Assurance is the cheapest quote I got for. The car is not used much & only gets taken out 4-5 times a month.

Last edited by wolf_lone : 22nd February 2016 at 00:42.
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Old 23rd February 2016, 10:12   #27
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Default Re: Increasing your Car's IDV during insurance renewal -Whats your take?

Hmm... Edit button is missing. I am also getting quote of

Rs. 2859/- - Bharti AXA (IDV Rs. 69000/-)
Rs. 2932/- - HDFC ERGO (IDV Rs. 68927/-)
Rs. 2968/- - Royal Sundram (IDV Rs. 89775/-)

Never had any experience with any of the above mentioned companies. How are they? Anybody faced problems with them or New India Assurance.
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Old 23rd February 2016, 13:19   #28
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Smile Re: Increasing your Car's IDV during insurance renewal -Whats your take?

Quote:
Originally Posted by wolf_lone View Post
Hmm... Edit button is missing. I am also getting quote of

Rs. 2859/- - Bharti AXA (IDV Rs. 69000/-)
Rs. 2932/- - HDFC ERGO (IDV Rs. 68927/-)
Rs. 2968/- - Royal Sundram (IDV Rs. 89775/-)

Never had any experience with any of the above mentioned companies. How are they? Anybody faced problems with them or New India Assurance.
Amongst the three I would rate royal Sundaram the best in terms of customer support during buying process and during claim settlement. I had brought insurance from them and the process was very smooth, same during claims settlement too. Very professional, quick communications by Surveyor. Over all a satisfying experience.
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Old 8th July 2016, 14:11   #29
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Default Re: Increasing your Car's IDV during insurance renewal -Whats your take?

Quote:
Originally Posted by VMC View Post
1) HAs anyone done this IDV increase?
2) Will they really cough upto 7 lacs as they claim?
3) Does the IDV caluclation change from companies to companies( TATA AIG's 0% depreciation is only for first 3 years)
4) Should I go ahead with the increase in IDV value?
While OP might not need the answer the responses can help fellow bhpians

1) Many people fall for it. Its an excellent way for private players to gather more premium

2) Nope. IDV is not final and binding, especially if you are dealing with a private player. Expect anything around the market value but if you think you'd get 7 lacs for a car which has 4.5 lac value in the used market, you are mistaken.

Indemnify! This is the word to look out for in your insurance policy. Did you know that an insurance company can even give you a replacement car and not the cash you thought you'd get, that's essentially what indemnify means.

3) IDV calculation changes from company to company because increasing it helps them get more premium. Settlement is a different ball game altogether. It would be a surprise to me if a semi-govt. insurance company (National, New India, United, Oriental) agrees to increase IDV by something like 50%.

4) If its something like 5-10%, that too after a proper survey from the semi-govt. insurance company, then go ahead. When it comes to private players, avoid even the 5%.

Please note that Antique Item Insurance is a bad analogy for Motor Vehicle Insurance. One can propose 10 lacs as the amount but your proposal means zilch to the insurance company at the time of claim settlement. Expect a 5-10% increase in IDV if these semi-govt companies work with you to get your car assessed through their surveyor and submit a report to the company that since the car is extremely well maintained compared to other cars in market they'd increase the value.

Note that insurance is not a profit making venture for the person insured, its merely a total loss avoidance scenario.

When it comes to claim settlement expect the IDV from semi-govt. companies because they don't mislead you in the first place. In fact for the first 5 years they have a set percentage deduction which leads to your IDV calculation and they simply cannot reduce it further. After 5 years, some subjectivity does creep in and this is where you can get a survey done and increase the IDV, marginally though.

Private players are ready as ever to go to the court and best known for 'across the table settlements' when it comes to cases where IDV was significantly higher than the market value.

If you have accessories in the car, get them insured too. A total loss/theft claim would always be a significant loss to someone who maintained the car too well and had uninsured accessories in the car, case in point, me!

I would be getting 2 lacs for my 2010 Swift Ldi (86k odo) which was stolen this week and was in pristine condition. Brand new Michelin's XM2 185s which were less than a week old (all 5), an ICE setup costing ~45k, new brake pads and shoes (less than a week old), alignment, balancing, tyre rotation done every 5k kms, fluid changes every 5k kms and the list goes on. Go figure the market price for this and learn from my mistake.
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Old 6th September 2016, 17:57   #30
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Default Re: Increasing your Car's IDV during insurance renewal -Whats your take?

I have in a very different situation here. I had my original insurance during car purchase from Bharti-Axa. That was 5 years back. I have still continuing with that as they have a cashless tie up with Nissan service center.
As the matter popped up now, I realized I have a higher IDV than the IDV value of other insurance providers.
As I just checked, I am getting an IDV in the range up 2 – 2.5 lac from other insurance provider, whereas Bharti-Axa offering me around 3.5. Almost 50% higher.
For the current year renewal, I was offered the same IDV as last year and I had accepted that. That makes the IDV as current year and last year as (4th year and 3rd year) 3.7 and the previous years in the order of (2nd year)3.9, (1st year)4.05. Original value should have matched with the invoice value I guess; I don’t have that insurance copy with me to cross check.
So, am I already in the trap? Should I ask them to reduce the IDV as per market value or continue with higher IDV?
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