[RedHerring]

This ruling has caused quite a bit of confusion. I am one of those who booked a car on 28th August and delivery will happen sometime in the next week or so. While the dealer's insurance amount was very high, I negotiated some money off rather than going with my own insurance bought from outside.

Now with this ruling, the entire thing has become very messy. Even the dealer is confused and is asking for some time before he can let me know what I need to pay. I am sure that he will try and earn some extra money from this as well. And he is sure to offer 1 yr OwnDamage + 3yrTP policy.

Also, my query is that if I go ahead with this, how do I just renew the Own Damage part of the policy? I guess that all of this is bundled right now and the insurance companies will provide separate OD & TP policies going forward?

[ghodlur]

Originally Posted by RedHerring

Also, my query is that if I go ahead with this, how do I just renew the Own Damage part of the policy? I guess that all of this is bundled right now and the insurance companies will provide separate OD & TP policies going forward?

That will be the case. For this year you will be given IMHO two policies - one for 1yr OD policy and 2nd for 3 yr TPL policy. Going forward the Insurance cos will soon come out with options to either buy the OD policy and/or the Third party Liability policy hopefully online.

[jpcoolguy]

Cross-posting from another thread (3rd party insurance period to be extended to 4 years for cars; 5 years for 2-wheelers) similar to this:

Some questions on this extended 3rd party insurance -

1. Are these 3 yr period is mandatory only for Third Party insurance component or applicable for Comprehensive as well? Shall I have the separate add-on covers like Zero Depreciation cover on a yearly basis?

2. If it is applicable to comprehensive as well, then what is the impact on NCB % on my insurance, as the NCB % will be higher for subsequent years?

3. Also, normally the IDV of the vehicle will be calculated based on the depreciation %, in case of Comprehensive policy, so I will be paying more on Own Damage premium right?

4. If this is not applicable on Comprehensive component of the policy, then what purpose it solves if I need to renew my Comprehensive policy every year again?

P.S.: Requesting mods to merge both these threads as both deals with same insurance related queries.

[S_U_N]

I was looking to book a Vespa and realized this new rule is now in place.
On-road price - 89905.
Digit Insurance - Rs. 6348 (5 years Third Party [TP] + 1 year Own Damage [OD] Zero Depreciation [ZD])
Now, I asked how much would it be for 5 years TP + 5 years OD with ZD. They took two days to get back to me with a figure of about 18000.
I asked my Bajaj Allianz agent for quotation and he gave me Rs. 6700 (initial quote was Rs. 8500) and Rs. 13500 respectively.

No one knows what will be the OD for second year.
No one knows if we can move from one provider to another for the second year OD. If there is a vendor lock-in, then this is bad for the consumer.

[ghodlur]

Originally Posted by S_U_N

Digit Insurance - Rs. 6348 (5 years Third Party [TP] + 1 year Own Damage [OD] Zero Depreciation [ZD])
Now, I asked how much would it be for 5 years TP + 5 years OD with ZD. They took two days to get back to me with a figure of about 18000.
I asked my Bajaj Allianz agent for quotation and he gave me Rs. 6700 (initial quote was Rs. 8500) and Rs. 13500 respectively.

Does the Digit Insurance quote include the CPA premium of Rs 750? I would suggest you stick 3 yr TPL + 1 yr OD combination for Insurance. Even the 3 yr TPL premium is a monkey on the back, no one knows when the govt can change the rules. If the TPL premium drops will Insurance co refund the extra amount?

[S_U_N]

^Since I am buying a two-wheeler, the discussion is for 5 years (not for 3 years) in my case.

I decided to go with Bajaj, since my other three vehicles are with the same insurance company.
What is 'CPA' btw?

I am aware of Personal Accident (PA).
There is no system of refund as far as I can understand. You buy the product by paying full money now. They do not charge you later if something changes, nor give you refund. So, it works both ways.

[ghodlur]

Originally Posted by S_U_N

I decided to go with Bajaj, since my other three vehicles are with the same insurance company.
What is 'CPA' btw?

CPA is Compulsory Personal Accident cover of 15L which costs Rs 750 and included in the TPL premium.

I was reading the circular of IRDA where it says that the 5yrs TPL covers ceases to exist if the bike is sold within 5 yrs of ownership. But does not talk anything about refund.

[S_U_N]

Originally Posted by ghodlur

CPA is Compulsory Personal Accident cover of 15L which costs Rs 750 and included in the TPL premium.

I was reading the circular of IRDA where it says that the 5yrs TPL covers ceases to exist if the bike is sold within 5 yrs of ownership. But does not talk anything about refund.

PA for 15 lacs is included - but that is only if owner is riding the scooter. I also got additional cover for if someone else is riding (including the pillion.)

[SoumenD]

Has this ruling jacked up prices for old vehicle insurance renewals as well? My 11 years old motorbike (RTR160) insurance that cost me ~1500 in 2017 now shows minimum 1800+GST(~2100) with 20% lesser IDV & 20% NCB

[SJM1214]

GST on the third-party motor cover may dip.

The government will soon bring a proposal before the GST Council to reduce the tax on the premium being paid by vehicle owners for buying third-party (TP) insurance. Currently, the GST on third-party premium is 18% and it’s mandatory for every vehicle owner to buy the TP insurance. A reduction is expected to ease the burden on consumers.

News Source.

[mithun]

https://www.youtube.com/watch?v=ms1Pr-KGvzY

The guy seems to be having a lot of valid points.


TBHP-ians inputs are welcome

[speedem0n]

IRDA withdraws Long Term Motor TP Insurance Package of 3 Years & 5 Years for 2 Wheelers & 3 Wheelers.