[gopa99]

For a car older than 5 years, I have a confusion on the claim possible as there is no correct IDV here. Do read the FAQ pasted below from my insurance provider:

QUOTE:
How underinsurance will affect you?
For example, if your car is worth Rs 100,000 and you insured it for Rs 80,000 you are only insuring your car for 80% of its value. If you claim accidental damages to the amount of Rs 5,000 (although covered in the Rs 80,000), you will only be paid out Rs 4,000 or 80% of the Rs 5,000 (Rs 5,000 x Rs 80,000 ÷ Rs 100,000 = Rs 4,000). While the difference may not be a lot of money on a claim Rs 5,000, if the car is stolen, you’ll be responsible for the Rs 20,000 difference if you want to replace the vehicle. It makes sense then to insure for replacement value instead of saving every month.
ENDQUOTE:

Now my query is how will this rule apply for a car more than 5 years old? If I have a claim of 5K, how will they do the above MATH?

[ghodlur]

Originally Posted by gopa99

Do read the FAQ pasted below from my insurance provider:

Now my query is how will this rule apply for a car more than 5 years old? If I have a claim of 5K, how will they do the above MATH?

You got some wrong information. IDV is no way related to the claims amount. If you have claims of 5K, then based on the depreciation rates for the spares repaired/replaced you claim will be reimbursed. Yes if the vehicle gets stolen, then IDV comes into picture and you will be paid the amount you insured your vehicle for.

Also why would someone under insure the vehicle for monthly savings?

For a vehicle older than 5 yr, the IDV is to be mutually agreed between the Insurer and the insured.

[gopa99]

Originally Posted by ghodlur

You got some wrong information. IDV is no way related to the claims amount. .

I was quoting from the ICICI lomboard insurance site. So I will be worried if they are putting up wrong information on their website.

Is there a standard method for checking the IDV for vehicles more than 5 years old?

Reason being, I got three quotes from 3 companies with entirely different IDV values on my 2006 GETZ. When I asked one of them as to why the IDV is so different, they replied they have a +/- 10% band in which they can play. However the band which I got was in the range of +/- 30%. Now my only fear is whether this will hinder in any way on my small value claims like a windshield change or a fender repair which is the most probable in my running in daily traffic.

[coolguru4ever]

Hello guys,

I am confused about the whole insurance renewal process. Until now I believed that it was a pretty simple process, but after going through multiple threads, I came to know how twisted all this is.

So, my i10's insurance is due for renewal on 22 June, 2014. This is my first insurance renewal and got a couple of quotes from different insurers. But, need help on deciding on which one to go for. Also, have some queries, which I have listed below.

Initial IDV of Car (at time of buying) - Rs. 4,20,210
Initial Insurer - TATA AIG
Insurance - 0 Dep
Premium - Rs. 14,000 (approx.)
NCB - 20% (for all quotes)
Claims - 0

Quotes -
HDFC Ergo -
IDV - Rs. 3,58,000
Premium - Rs. 10,900 (discounted)
Depreciation - 15%
Insurance - 0 Dep


TATA AIG -
IDV - Rs. 3,38,000
Premium - Rs. 10,700
Premium - Rs. 9,700 (After discount)
Depreciation - 20%
Insurance - 0 Dep

I asked the TATA AIG person to increase the IDV and here is the new quote -
IDV - Rs. 3,57,000
Premium - Rs. 11,700 (approx.)
Premium - Rs. 10,100 (After discount)
Depreciation - 15%
Insurance - 0 Dep

Haven't had any issues with TATA AIG, since haven't had a chance to take any claims so far. Also, just want to stick to TATA AIG, since have heard lot of goodies about it on the forum. I am considering HDFC Ergo (Silver Plan), since it's providing any number of claims in 0 dep as opposed to 2 claims per year in other insurance providers.

So, based on the quotes and what I have read about it on the forum, have some queries -
1. How much depreciation should happen for first year? According to IRDA the depreciation should be 15% for first year. But the insurance guy says that 15% + 5% depreciation happens when the car comes out of the showroom. Is this correct?

2. Is keeping higher IDV beneficial? I have read on the forum that whatever IDV you decide at the time of renewal, in case of a total loss situation, the IDV will be calculated by the insurance company taking into account depreciation, even in 0 dep poilcy. So the higher IDV mentioned in the policy will not be considered.

3. HDFC Ergo have come up with a Silver Plan for 0 dep insurance which gives the facility to take any number of claims in a year, as opposed to 2 claims limited by other companies. This seems too good to be true. Why would any company take a loss by providing any no. of claims? People would take a claim for even a minor scratch. Can anyone verify this thing?

Waiting for your suggestions.

Thanks

[Tanmay K]

Sorry for a dumb sounding question:

Does the IDV affect how much reimbursement one gets during a small repair claim?

An example. Someone rear-ends you and it breaks your bumper. You file an insurance claim and the total workshop bill is 10,000. Lets say your IDV is 7,00,000 and you have to pay 3500 to get the repairs done. My question is: Had the IDV been 6,20,000, would I still pay 3500 or will I pay more out of pocket in the second case?

Edit: This is assuming the age of the vehicle is the same in both instances.

[ghodlur]

Originally Posted by Tanmay K

Does the IDV affect how much reimbursement one gets during a small repair claim?

Absolutely no. Period.

Only the renewal premium gets affected due to loss of NCB.

[Majumdarda]

Guys, Please advise how much IDV should one prefer for a new 4 wheeler insurance. I have opted for Kwid RxT 1.0L (M) and insurance will be via HDFC Ergo.

For an IDV of 3333019 with 0 Dep, the premium is 10801
Mid way, for an IDV of 350000 with 0 Dep, the premium is 11225
Higher up, for an IDV of 400000 with 0 Dep, the premium is 12474
And the max offered IDV of 42555523 with 0 Dep, the premium is 13111

What benefits one gets in choosing a higher IDV ?

[ghodlur]

Originally Posted by Majumdarda

Guys, Please advise how much IDV should one prefer for a new 4 wheeler insurance. I have opted for Kwid RxT 1.0L (M) and insurance will be via HDFC Ergo.

The correct IDV for the the new car will be ex showroom cost (excluding taxes) less 5%.

There is no advantage in under insuring or over insuring your car. Just ensure that HDFC has a cashless tie up with the Renault workshop where you would generally intend to service your car.