[ghodlur]

Originally Posted by vnabhi

I plan to change my 12-year old WagonR next year. So far, there's no claim at all on it, and I think the NCB is 50%.

But when I buy a new car, I'll have to pay 14% life tax instead of 12% as it will be a second car registered on my name.

Venu Sir,

NCB always goes with the owner and not with the car. Even if you transfer the car to your wife's name, you will still retain the NCB. So no point in doing that. Suggest you sell the car and obtain the NCB letter from the Insurance co and use it during the new car insurance buying.

By Life tax do you mean road tax? If so, then this is no way connected to NCB since the Insurance would be on the exshowroom cost and not on the OTR cost. So you can still benefit from the NCB. In any case you would end up paying the said road tax on any second car you buy. Hope this clarifies.

BTW is there any reference document which says that for second car you need to pay additional tax?

[vnabhi]

Originally Posted by ghodlur

BTW is there any reference document which says that for second car you need to pay additional tax?

Thanks for your suggestion. Looks like there's no way I can avoid paying 2% additional life tax.

The AP RTA website has the details of additional life tax payable for second vehicle. The only person who does not own a vehicle so far in my family is my wife. Both kids have a scooter each registered.

[malgudi]

Originally Posted by vnabhi

I plan to change my 12-year old WagonR next year. So far, there's no claim at all on it, and I think the NCB is 50%.

But when I buy a new car, I'll have to pay 14% life tax instead of 12% as it will be a second car registered on my name. I can avoid this by buying the new car in my wife's name. So my question is whether I should transfer the WagonR in her name this year, so that she gets the benefit of NCB on the new car.

But even then, the new car would be a second car on her name, and we'll have to shell out additional 2% life tax. This seems to be a Catch 22 situation.

Any suggestions, guys?

I assume that WagonR is in your name currently and you do not have any other car.
Option 1-When you sell the car next year, then there would be no car in your name and you would also get the 50% NCB certificate. So when you buy new car, there is only 1 car in your name and you pay 12% tax + get 50% discount on your insurance premium for new car
Option 2- you change the ownership to your wife. In this case also it is like selling the car. Your wife will not get the 50% NCB transferred as it would remain with you only. So you can get fresh insurance with no NCB for WagonR in your Wife's name. Since you get the NCB certificate, you can buy the new car in your name and get the disount in insurance & road tax at 12%

[ghodlur]

Originally Posted by vnabhi

Thanks for your suggestion. Looks like there's no way I can avoid paying 2% additional life tax.

The AP RTA website has the details of additional life tax payable for second vehicle. The only person who does not own a vehicle so far in my family is my wife. Both kids have a scooter each registered.

Venu Sir,

I think there might a way out. Not too sure about this but worth a try. A little birdie in the Insurance sectoe tell me that if you provide your marriage certificate with a letter to the present Insurer asking for transfer of NCB to your wife on the basis of the marriage certificate, your wife can buy the new car and claim the NCB too. Most insurers will flatly refuse it, but it seems there is such a provision. If you can stress on this aspect, may be the Insurance co will relent and transfer the NCB to your wife while buying the Insurance for the new car. Do let us know if anything fruitful comes out the conversations. I am trying to find the valid proof to substantiate the above case.

[ghodlur]

Originally Posted by malgudi

I assume that WagonR is in your name currently and you do not have any other car.

@malgudi
He does have a Ford Fiesta registered in his name, hence any new car purchase in his name will be a second vehicle.

Mods - Sorry for the back to back post, pls merge with the above post. Sorry for the incovinience.

[flyingkolors]

Friends

Can someone tell me if the zero depreciation (bumper to bumper 100% coverage) policy is not applicable for cars that more than 3 years old?

I have my zero dep policy with ICICI and its due for renewal in a weeks time. They claim that for cars more than 3years old (my car just completed 3years in mid of Jan) they do not offer zero dep policies.

Is this true? Any advice will be of great help.

[manas27587]

I have a small dent on my Rapid due to a stupid lamp from my society compound falling on my car.
My policy is due for renewal in march.
Can i wait until march get the NCB and then get the dent repaired with the new policy?

[sagnik42]

I had no idea that this was transferable. I am, however, only learning the ABCs of driving and juggling with all the information that comes along with having a personal car. But even some of my friends who have owned different cars for many years are not aware of this.

[ghodlur]

Originally Posted by manas27587

I have a small dent on my Rapid due to a stupid lamp from my society compound falling on my car.
My policy is due for renewal in march.
Can i wait until march get the NCB and then get the dent repaired with the new policy?

First confirm if the dent repair is going to cost you more than the NCB amount saved on the next year's premium. If yes, then you can renew in March and then lodge a claim but have a valid reason for the claim.

[sandeep108]

On a slightly off-topic note, the recent drastic increase in third party premiums by IRDA appears completely illogical. They keep saying that there are huge increases in claims, but 50-100% increase in one year for private cars?

I think T-BHP as an association of interested car owners must file their objections to this.

First off IRDA should release the category-wise claims provisions and premiums. They conveniently do not do this. I find it very hard to believe that private cars alone contributed to 50-100% increase in third partly liability over one year. Further they have substantially reduced the third party property liability to only Rs. 7,50,000/- (a few years earlier it was unlimited too) even though they have increased premiums manifold.

Thirdly they must collect data from RTOs and Insurance companies all over India to determine which vehicles remain uninsured. With almost all RTOs and insurance companies being computerised, this data matching (or mismatching) also should be very easy to do. This number I believe is as high as 50% or more. Once they start collecting premiums from all the uninsured vehicles, there will be a huge increase in premiums collected which will easily offset any losses and will actually result in overall premiums coming down which again will encourage more owners to buy the insurance.

Fourthly, IRDA must release 10 year statistics to show the category-wise details of third party claims provisions made and actually paid out. Often the claim is reduced by the MACT as per norms.

IRDA must implement a system of driving license data against claims and implement a NCB system based on driveras well as owner. If a driver is perpetually rash, and you try and endorse that driver on a policy, an automatic loading should occur. This will also serve as a major deterrent and encourage safer/defensive drivers and ultimately save a lot of lives.

Instead of following all these logical steps, we only find the regulator (with all due respect) simply trying to increase premiums where there may be least resistance (read private car owners as like all govt. bodies) to cover up inefficiencies in the system, and allowing a party for the insurance companies, brokers and agents through increased commissions and expense ratios.

I again re-iterate - GTO, etc. and T-BHP must collectively take this up strongly at the IRDA and FM levels.

[ghodlur]

@sandeep108,

Your reaction to the TPL rates hike has come at a right time. Suggest to use the opportunity provided by IRDA and express your concerns to IRDA directly.

Press Release
Ref: --Date: 20-02-2014

Exposure Draft on Revision of Premium Rates for Motor Third Party Insurance Covers for the Financial Year 2014-15

Attention is invited to Authority’s order no. IRDA/NL/NTFN/MOTP/066/04/2011 dated 15th April 2011, to review and adjust the premium rates for motor third party insurance covers annually based on a formula. Accordingly, the Authority has issued an exposure draft on Revision of Premium Rates for Motor Third Party Insurance Covers for the Financial Year 2014-15, which is placed at IRDA website: www.irda.gov.in

The Authority hereby invites all stakeholders to provide their comments on this draft proposal so as to reach the Authority, also by e-mail addressed to Shri Suresh Mathur, Sr. Joint Director at suresh@irda.gov.in on or before 28th February 2014

[sandeep108]

Thanks for pointing out the IRDA note from their website. I should have included that also in my post. One person taking it up will not help.

More people must also take up on these points and e-mail / petition the IRDA. That is the purpose of my post and to also give cogent reasoning for objecting to the unfair hike in TPP.

I request our members to help out - after all it will benefit the entire motoring public.

[SSD2122]

Hi Folks,

I am in the process of buying new linea in the last week of May 14. I am giving my old car to the dealer. Pls. correct my understanding regarding insurance.

1. My old car is with me for 7 years and I have accumulated 50% NCB on it. This I can transfer to my new car and would thereby get a reduced insurance premium for my new car - is this right?
2. When I give my old car to the dealer, they would give a delivery note and this I would be taking to my current insurance company who would give me an NCB letter. This I would then give to the dealer. I would get a reduced insurance premium on my new insurance policy for Linea.
3. Do I have to cancel my old car policy and if so when? My old car insurance policy is valid till Sep'14. Does this cancellation in any way help me? I am a bit confused over here.

[condor]

You can get the NCB transferred. Speak to the insurance guys, and get a quote in WRITING with break up of the premium.

Worst case, you may have to pay off the 50% discount that you have on your old policy (on a prorated basis) to be able to get the NCB transferred.

[Sheel]

Apologies beforehand as I have not read the entire thread & asking a question

If the current car is in my father's name, will the next car we buy (in my name) get the benefit of NCB?

I believe the manufacturer would be the same & most probably the insurance company as well.