[Accius]

Hi,

This I guess is the new funda with our Insurance providers. While renewing the insurance policy for our new Amaze last year, the showroom agent, while providing the quotes, said that some insurance companies only allow maximum 2 zero dep claims in a year and then you cannot renew the policy with the same company. These policies were having approximately 20% less premium as compared to other zero dep policies which allowed unlimited number of claims.

[Hayek]

Originally Posted by blue_pulsar

Also, Tata AIG has a maximum of 2 claims per year. They processed my single incident as 2 claims and not do not want to renew.

Am amazed that Tata AIG treated a single incident (a multiple car pile up) as two claims, and processed it that way. Did they give you any reason why they did that? Did you have evidence to show that both damages took place in one incident, either through an FIR or photos? You clearly seem to have been hard done by.

However, I am quite surprised at the kind of matters for which people make claims. Someone scratching a parked car is not what I would consider an insurable damage - just because you have a zero dep policy, it does not mean you ask the insurance to pay for any and every damage. I have had the odd scratch in various cars (impossible to avoid in India and have to be seen as normal wear and tear). In such cases, I let them pile up for a while and then get the panel repainted or touched up - at my expense, despite having a zero dep policy. Am certain that if I were running an insurance company in India, I would refuse to cover folks who make insurance claims for such matters. Please note that you have no right to force a company to serve you - and insurance is all about avoiding adverse selection where people take policies with the intention of “recovering” their premium each year through minor claims, while retaining the option of a large claim if something really goes wrong. Don’t mean to pick on any individual but I do think we need to relook at our general attitude towards insurance claims.

[Lalvaz]

Originally Posted by VKumar

My experience with three companies has been quite good:
1) Bajaj Allianz: My preferred insurer, never faced any kind of issue with them. Claims are quick, and in fact, my petrol Polo goes for one claim every year (3 in 2018); not a single issue with them till date. Still they are my insurer.

2) Reliance: My insurer since 2 years, not a single issue till date. I must appreciate the fact that their settlement is lightening quick. I thank my VW dealer for suggesting me Reliance (My Polo diesel is covered by them)

3) United India: Corolla - 7 claims in 3 years, Ecosport - 3 claims in 2 years
My experience has been best with them so far, never a single issue.

Note: I have always taken the insurance from my dealer itself. 1000-2000 is max I can save from outside, but the way these guys help me with claims, and the speed of settlement keeps me happy.

I am an anti NCB guy actually, if I am giving 30k, I am not interested in saving 6-7k; just give me 60-70k back in form of claims, and I will happily pay 30k again.

About Tata AIG, once I insured with them, one big claim was taken (Toyota Fortuner), next year premium was actually quite high.

The sheer amount of Insurance claims you've made is mindboggling. Is this due to your style of driving or just plain bad luck?

Judging from your previous posts, I used to always think of you as being a seasoned motorist. Now after reading your post on the number of claims, I'm not so sure.

You're happy about the fact that you pay 30k and claim 60-70k. You do realize that customers such as yourself cannot be a sustainable business model for any insurance company? This will eventually be recovered from other motorists by means of higher premiums for no fault of theirs.

[Laxman9192]

Originally Posted by revv_maniac

Hi,

I insured 2 of my cars and 4 bikes with ACKO, Coverfox which ever comes the cheapest and offers Zero Dep

How has your experience with Acko been? Considered it the last time my car policy was up for renewal but later got it renewed via the dealer for peace of mind and uncertainty with Acko.

[yesyeswe]

Happened to me as well last year, my polo hit a stone while driving on unpaved roads, total expenses were around 18k, claim was passed without any issues but at the time of renewal i was refused as well.

[kovilkalai]

Originally Posted by GTO

Wait a minute. So, Tata-AIG is refusing renewal due to a customer actually using his insurance policy? What does that mean? That Tata-AIG wants to keep collecting premiums only? What nonsense. Thanks for sharing! We will be adding this to our news section for maximum visibility .

I understand your reaction to this specific case. However, there are guys who frequently get into accidents. The insurance companies need some way of responding to people who make frequent claims. They do it in one of two ways, raise price or cut risk (drop policy). Indian regulators are among the most stringent in the world - they keep a close eye on insurers. The regulator seems to be okay with this and it is standard practice across the world. Some countries ensure that even the riskiest driver gets a policy through special policies.

While I agree with your response to this case, I have to say that the policy of penalising unsafe drivers and rewarding safe drivers is useful.

[pganapathy]

Originally Posted by blue_pulsar

"We regret to inform you that, considering the experience on the policy / segment, we are not in a position to offer you package cover on renewal. Instead we will be happy to
provide you a Liability Only policy, as per the terms and conditions of the respective policy"

Can anyone tell me what is going on here?

Essentially every insurance company has an algorithm which calculates the value of a customer. If it works out that you are potentially going to cost more than the income you bring in, they either raise the policy rate or refuse you. There are multiple things that go into the algorithm, including where you live, type of car, your driving/accident history etc.

For whatever reason it has decided you are too expensive. Maybe it was the value of the repairs of your first accident in the second or third year of ownership.

Anyway, it is easier to move onto another insurance provider. There are still other good providers out there.

[Dry Ice]

Originally Posted by kovilkalai

I understand your reaction to this specific case. However, there are guys who frequently get into accidents. The insurance companies need some way of responding to people who make frequent claims. They do it in one of two ways, raise price or cut risk (drop policy). Indian regulators are among the most stringent in the world - they keep a close eye on insurers. The regulator seems to be okay with this and it is standard practice across the world. Some countries ensure that even the riskiest driver gets a policy through special policies.

While I agree with your response to this case, I have to say that the policy of penalising unsafe drivers and rewarding safe drivers is useful.

Hypothetically speaking -

I am stationary on a red signal, someone rear ends me, apologies and offers to make good the NCB, I will lose by claiming my insurance. Police also advocate this approach, as its a win-win for all parties.

Car is repaired, the day I bring it home, a coconut falls on the windshield. Back to garage and another claim.

Now, for no fault of mine, and inspite of being stationary at both incidents, I am a dangerous or risky driver. Which I find out at renewal.

-------------

I agree that rash drivers should be penalised, but for that to work you also need a fair system which allows you to claim 3rd party insurance easily, and for the insurer's to track your violation history.

Only number of claims should not be the yardstick

[sandeepmohan]

Sounds like one needs to start reading the fine print on our insurance policies. Be it for a vehicle, home contents, etc. I must admit that I have never read it. Unless and otherwise it specifically states under the policy terms, that you cannot have more than a specific number of claims in a year or a given time period, there is no reason insurance companies can refuse a claim or renewal. If they still give you trouble, move on. They don't deserve your business.

Refusal of insurance renewal for a diesel vehicle is new to me and odd.

You would think that these guys operate based on data as that would highlight each individual case. Does not seem to be the case though, atleast for AIG.

[McLaren Rulez]

Originally Posted by Hayek

However, I am quite surprised at the kind of matters for which people make claims. Someone scratching a parked car is not what I would consider an insurable damage - just because you have a zero dep policy, it does not mean you ask the insurance to pay for any and every damage. Don’t mean to pick on any individual but I do think we need to relook at our general attitude towards insurance claims.

I'm not sure why you blame the customer here - he/she is simply choosing the best financial option. It is the insurance company's responsibility to use the customer's claims history to decide his/her premium till they are profitable. The current system (where switching companies essentially erases your history) is a flawed one. Of course people are going to take advantage of it!

[rajeshsundaram]

One thing I realised is - Insurance companies take into account how much premium have you paid so far - when you raise a claim. That plays an important factor in providing you the claim, and option to renew with the same provider in the following year. If the settlement is more than the sum of premiums you have paid so far, they kick you out. They dont want you as a customer anymore. Simple as that.

My current insurance provider for my Xylo is Royal Sundaram. While they are bit expensive, they offer decent service. After I made two claims in a single year, I was allowed to renew albeit at a higher premium.

With auto insurance you are always at the mercy of the Insurance providers, the surveyors and their higher ups. Ombudsman is a joke.

And one thing should be noted - In our country many people tend to misuse insurance claims intentionally, or unintentionally. Just because we pay premium does not mean that everything will be covered, every time. So the insurance companies resort to treat every customer as a burden. And every month / quarter they have a threshold for settlements. So if the claims cross that threshold, they try to find ways to reject claims or make it tough.
Can't blame them fully though.

[nvldvr]

I suggest write a strongly worded email to their customer care, intimating them that you would be taking up this issue with IRDAI. Keep a track of the email correspondence, and actually do take up the issue with IRDAI if the firm doesn't oblige.

This is no joke. As GTO mentioned, is TATA AIG in this business only for collecting permiums? This is unacceptable. Such unethical practices need to be strongly highlighted at all possible forums.


By the way, I am ditching TATA AIG as my insurance provider based on this.

[aniyo]

Even I had a funny incident with TATA AIG. I bought my Nexon diesel last year (March 2019) from KHT and they came close to insurance quote from outside and I paid 34K or 35K for comprehensive insurance including 3 year 3rd party from KHT.

Now in this march I was trying to renew and TATA AIG website was not allowing me to renew claiming technical problem. When I reached out to customer care number, they made me go in circles and finally after 3 days i got a call back telling that my policy is still not up for renewal in their database. This is 2 weeks before policy expiring.
KHT had not updated any of my details with TATA AIG. Afetr I gave all my info twice with 2 different reps across 1 week, they sent me a quotation of 35K same as last year.

I corrected them that for renewal 3rd party will not be applicable and the premium should be lesser and they stuck to their price and I renewed with Go Digit finally.

[tilt]

Originally Posted by Dry Ice

Hypothetically speaking -

I am stationary on a red signal, someone rear ends me, apologies and offers to make good the NCB, I will lose by claiming my insurance. Police also advocate this approach, as its a win-win for all parties.

Car is repaired, the day I bring it home, a coconut falls on the windshield. Back to garage and another claim.

Now, for no fault of mine, and inspite of being stationary at both incidents, I am a dangerous or risky driver. Which I find out at renewal.

-------------

I agree that rash drivers should be penalised, but for that to work you also need a fair system which allows you to claim 3rd party insurance easily, and for the insurer's to track your violation history.

Only number of claims should not be the yardstick

This is why India need a "no fault" classification for insurance policies.

In North America, if the damage is not attributed to directly the insured's fault, even in a crash, your renewal premiums or discounts or risk rating will NOT be affected.

Therefore, coconut falliing on the car, being crashed into while stationary, being hit on the rear even while moving, being crashed into because of the other driver's fault or negligence etc. will not affect you negatively in any fashion.

So, I can have many no-fault claims which will be paid, and I can still get favourable terms upon renewal or cross-shopping.

Unfortunately in India, this concept is not there, and the fact that you made a claim is more than enough for you to be penalised quite heavily and stigmatised.

Cheers

[ChiragM]

Thanks to Muthukumaran Ganesan for sending this information in. Heartfelt gratitude for sharing it with other enthusiasts via this Team-BHP page!

Today I sent a mail to TATA AIG for renewal and I am surprised to get the below mail from them. I don't know what's happening with them.