Go Back   Team-BHP > BHP India > Team-BHP Reviews > Indian Car Loans & Insurance


Reply
 
Thread Tools Search this Thread
Old 14th September 2017, 17:01   #31
BHPian
 
feluda86's Avatar
 
Join Date: May 2017
Location: Pune
Posts: 97
Thanked: 215 Times
Default Re: Increasing your Car's IDV during insurance renewal -Whats your take?

Following is what i learnt from my interactions with surveyors of different insurance providers.

IDV is the maximum value of the car that the insurer is liable to pay. If a car is declared a total loss or is stolen, it is only then that the IDV is looked at. Another time IDV is looked at is when assessing damage coverage. Insurance companies declare the car a total loss if the repair expense is expected to cross a certain percentage of IDV (75%-80% is industry standard). In most cases with high repair costs, the dealer works hand in glove with the insurer in declaring the car a total loss. In such cases, it is good to check with FNGs for repair costs.

Every car has a market value associated with it - decided by market dynamics, resale value and demand for that particular model. The insurer is aware of this value. Let us call this as A. Every insurer has a depreciation table for every model they insure. Let us call this B.

Case 1: The car is declared a total loss. A and B are both more than the IDV. This is generally the case for a new car (less than 6 months). You will get back IDV-depreciation for number months after policy issue that has passed (remember IDV is the value on the day of issue of policy and depreciation will be calculated on IDV for every day that passes).

Case 2: The car is a total loss. IDV (-depreciation) is more than B. The insurer will perform a market survey to determine if A is less than B. You can perform a survey of your own and inform the insurer if your A is more than what he quotes. The insurer is then liable to pay you lowest of the A and B. However, negotiation skills of the insured plays an important role here. Insurer pays only balance of what is decided and salvage value. Unfortunately in India there is no rule/law that governs salvage value. So the insurer generally gets a free hand.

In rare cases, the insured gets back full IDV or close to what the IDV is like the case shared earlier in the thread.

Moral of the story: Always know the market value of your car. Keep IDV around this market value. You will only increase your premium year on year without real benefit when a situation of total loss happens by keeping high IDVs. Remember, some of the add-ons like zero dep protection depend on IDV. Increasing IDV for an old car not only increases basic premium but also some add-on costs.

Experts, please correct my understanding if I am wrong.

Hope this helps!
feluda86 is offline   (1) Thanks Reply With Quote
Old 27th November 2017, 12:17   #32
BANNED
 
Join Date: Dec 2007
Location: Pune
Posts: 119
Thanked: 55 Times
Default

Dear Friends,

Need immediate help. I am purchasing insurance for my new ecosport. Ex-showroom price of the car is 10,67,300/-
Please help in deciding IDV of the car. Can I increase IDV to OTR?
If only Ex-showroom price is applicable, should I keep it 95% of the Ex-showroom value?

Attached is the quote from HDFC argo.

Name:  Ecosport_premimum.PNG
Views: 870
Size:  20.0 KB

Is this quotation good and includes all necessary covers? Please note I have opted 3&4 year warranty and road side assistant of car from the dealer.

Also, is it good to go with HDFC Argo? Any other recommendations are also welcome.

Thanks,
Manish

Last edited by ampere : 27th November 2017 at 12:48. Reason: back to back posts merged.
manish_symc is offline   Reply With Quote
Old 27th November 2017, 12:49   #33
Senior - BHPian
 
Join Date: Oct 2008
Location: Bangalore/Pune
Posts: 1,200
Thanked: 1,572 Times
Default Re: Increasing your Car's IDV during insurance renewal -Whats your take?

Quote:
Originally Posted by manish_symc View Post
Dear Friends,

Need immediate help. I am purchasing insurance for my new ecosport. Ex-showroom price of the car is 10,67,300/-
Please help in deciding IDV of the car. Can I increase IDV to OTR?
If only Ex-showroom price is applicable, should I keep it 95% of the Ex-showroom value?

Attached is the quote from HDFC argo.

Attachment 1699893

Is this quotation good and includes all necessary covers? Please note I have opted 3&4 year warranty and road side assistant of car from the dealer.

Thanks,
Manish



Also, is it good to go with HDFC Argo? Any other recommendations are also welcome.
Simple. Choose the Return-to-invoice cover. In case of theft or a total loss accident, you'll get back the OTR price you paid for the car. This cover can be purchased for the first 3 years of the car's life.

Cheers,

Jay
JayPrashanth is offline   Reply With Quote
Old 27th November 2017, 12:56   #34
BANNED
 
Join Date: Dec 2007
Location: Pune
Posts: 119
Thanked: 55 Times
Default Re: Increasing your Car's IDV during insurance renewal -Whats your take?

Quote:
Originally Posted by JayPrashanth View Post
Simple. Choose the Return-to-invoice cover. In case of theft or a total loss accident, you'll get back the OTR price you paid for the car. This cover can be purchased for the first 3 years of the car's life.

Cheers,

Jay
Thanks Jay for quick reply. I am checking for Return to invoice cover with coverfox.
Can you please comment rest of the attached invoice look good and HDFC ergo is good to go with?

Thanks,
Manisn
manish_symc is offline   Reply With Quote
Old 28th November 2017, 12:57   #35
Senior - BHPian
 
ghodlur's Avatar
 
Join Date: Sep 2009
Location: Thane
Posts: 5,137
Thanked: 2,329 Times
Smile Re: Increasing your Car's IDV during insurance renewal -Whats your take?

Quote:
Originally Posted by manish_symc View Post
Thanks Jay for quick reply. I am checking for Return to invoice cover with coverfox.
Can you please comment rest of the attached invoice look good and HDFC ergo is good to go with?

Thanks,
Manisn
Manish,

You correct IDV should be 1013935. No point in over insuring the car with higher IDV.

Do you get a similar quote of HDFC ergo website too? You an do away with the RSA from Insurer since you already have it from Ford. If you feel you would be using a route which gets water logged during monsoons, then suggest to add Hydrostatic lock cover add on cover. If not then I feel zero dep add on cover should be more than sufficient.

Instead of spending additional amounts on the add on covers, I would suggest to get the 3M under body anti rust coating done with the saved amount.

The quote looks OK.
ghodlur is offline   (1) Thanks Reply With Quote
Old 6th December 2017, 13:45   #36
BHPian
 
vsrivatsa's Avatar
 
Join Date: Jan 2014
Location: Bangalore
Posts: 772
Thanked: 793 Times
Default Re: Increasing your Car's IDV during insurance renewal -Whats your take?

Quote:
Originally Posted by ghodlur View Post
The quote looks OK.
I am in the same boat and the best quote from the coverfox website seems to be from HDFC Ergo. Does anyone have any experience with HDFC Ergo - how is their Settlement timelines etc?
vsrivatsa is offline   Reply With Quote
Old 6th December 2017, 17:04   #37
Senior - BHPian
 
Join Date: Apr 2007
Location: Pune
Posts: 2,537
Thanked: 1,156 Times
Default Re: Increasing your Car's IDV during insurance renewal -Whats your take?

Quote:
Originally Posted by feluda86 View Post

In rare cases, the insured gets back full IDV or close to what the IDV is like the case shared earlier in the thread.

Moral of the story: Always know the market value of your car. Keep IDV around this market value. You will only increase your premium year on year without real benefit when a situation of total loss happens by keeping high IDVs. Remember, some of the add-ons like zero dep protection depend on IDV. Increasing IDV for an old car not only increases basic premium but also some add-on costs.
I don't think so.
In case of total loss, insurance company pays the full IDV. My 9 years and 10 month old Tucson met with an accident, it was total loss and BajaAllianz paid the IDV. No daily/monthly depreciation, no market value discussion. They took some time for due diligence but it was a genuine accident and they honored their liability.

Note: They found a salvage buyer, asked him to pay the salvage amount directly to me and then they paid me the remaining amount (IDV - salvage value). I found this a little odd, ideally they should have handled all by themselves (sell the scrapped vehicle to the salvage buyer, receive salvage amount from him in their account and pay the IDV to me) but for some reason they did not want the salvage amount transferred to their account!

Last edited by anandpadhye : 6th December 2017 at 17:11.
anandpadhye is offline   (1) Thanks Reply With Quote
Old 20th December 2017, 21:11   #38
BHPian
 
reihem's Avatar
 
Join Date: Dec 2014
Location: Chennai
Posts: 167
Thanked: 319 Times
Default Re: Increasing your Car's IDV during insurance renewal -Whats your take?

I have a very specific question. The fact that I made a couple of bad decisions here is evident ... you don't need to rub it in !

I bought a Honda Jazz AT S in July 2014. My wife banged the car up a fair bit and I also let my insurance lapse in 2016. I noticed it had lapsed in September 2017 and used coverfox to buy fresh insurance via bharati axa. I took on a barebones policy with a low IDV and as expected bharati sent someone to photograph the car (in its banged up state).

This month I went ahead and fixed up the car at huge cost, it looks and runs virtually new now.

How do I get my insurance to reflect this ? I feel that any claim i make now will use its old banged up state as the point of reference. Can i get a fresh assessment done and take a new policy ? Any advice will be appreciated.
reihem is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Insurance renewal : IDV confusion and more ... meerkat Indian Car Loans & Insurance 22 3rd March 2017 08:12
ICICI Lombard: Send photo of your current policy, get quote for insurance renewal ghodlur Indian Car Loans & Insurance 2 5th August 2015 10:08
Car from Gurgaon, now in Bangalore, insurance up for renewal libranof1987 Indian Car Loans & Insurance 11 30th September 2010 13:33
IDV value for a new car - Only 95% of ex-showroom value? kuttapan The Indian Car Scene 9 21st July 2009 15:27


All times are GMT +5.5. The time now is 22:44.

Copyright 2000 - 2018, Team-BHP.com
Proudly powered by E2E Networks