4 day old Car Insurance

emehul · 8th October 2007, 10:35

We Bought NHC ZXi 2 Weeks ago and got full insurance from Reliance before delivery.We have not recived any document from the car dealer yet.On the third day of delivery my father meet with a big accident in that car and carget badly damage from front side bumper and bonet.Car not get rigister with RTO.I sent the car to the dealer landmarkHonda. they gave me the estimate of rs 1,71,000/- for the accident job. In the damge 70% of the parts are plastic so insurance company will give me only 50% of that cost .ultimately i have to pay 50 to 60k to get my car get ready again.

I didnet get understand that just 4 days old car with full insurance also i have to pay this much of money the what is benifit of insurance.

please help me that is any way that i can claim the insurance company to get more benifit for my accident job.

Zappo · 8th October 2007, 10:55

As far as I know that depreciation on plastic kicks in only after the first 6 months of buying. Since yours is a new car (4 days is just that) the Insurance company should pay the complete cost IMO. Check it out and if required threaten to take them to the Insurance Ombudsman.

It sounds foolish that the plastic parts will depreciate to half the cost within the 1st 4 days of purchase. And till the issue is sorted out to your satisfaction you should probably not be paying to the dealer any money.

Ram · 8th October 2007, 11:12

Which comes first, registration or insurance?

Legally, an unregistered car should not be driven at all, except by the dealer with temporary trade plates which are covered only by trade group insurance. And that insurance is very strict about who is allowed to drive, and under what circumstances the dealer is driving the car.

If in an accident without proper license plates, the insurance company can refuse to provide cover.

When I took delivery of my new company car, the insurance was fully paid up and the car was registered and had proper black on white license plates.

But my company still did not permit the car to be driven until the insurance certificate was issued.

The idea was that if an accident were to happen the insurance company could rightly refuse to pay, because the insured period had not yet begun.

Insured period and registration number must be written on the insurance certificate, sealed and stamped before the insurance is legally valid.

Am I completely mistaken?

Zappo · 8th October 2007, 11:36

ram, I think this provision varies from state to state. In UP they drive around a vehicle with A/F written on the number plate (stands for Applied For). I think they allow it to be driven like that for a week or two. Similarly here in AP the moment you buy a vehicle you are given a temporary number plate. Its red on yellow and bears a T/R somewhere in the middle of the number. Something like AP10 BD T/R 2582. They charge a few thousand bucks for this number. One can drive around legally for a month on this temporary plate and after that as well, albeit by paying a penalty for each additional month.

So that should not be a problem, provided the state has a provision under its MV rules. Insurance stands valid from the day the car is driven out of the showroom. They can not send you all the documents the day you drive it out. However they give you a covernote that specifically mentions the coverage and its start and end period. As long as you have that with you your vehicle is covered for all eventualities.

But the question here is whether the Insurance company is right in saying they will deduct 50% on all the plastic parts when the car is only 4 days old. I think the answer is an emphatic NO. This depreciation thing kicks in only after the first 6 months of purchase IIRC. emehul should get the full reimbursement IMO.

emehul · 8th October 2007, 12:05

Ya the Car is the with the plate that applied for registration. and the question is not the matter with insurance but my problem is that in the policy paper of insurance the have written that for all rubber /nylon/plastic parts,tyer and tubes,batterise and air bags 50 % deduaction for depreciation in respact of part is replace . Fiber part it is 30 %. and for Glass and other for first 6 months its nil

Ram · 8th October 2007, 12:37

Quote:

Originally Posted by Zappo

ram, I think this provision varies from state to state.

Does it really? Maybe an expert lawyer can give us the correct picture.

IMHO, it's like saying each state makes its own laws. Is each state allowed to have a different law in regard of what the police/RTO must implement or ignore?

Otherwise, when it comes time to pay up, the insurance co. can take the
safest position.

I know there are many lawless, rural and semi-urban places in India. But the courts don't differ from each other, when giving a verdict.
For instance, how many of us are aware that, insurance stands invalid, if the driver is drunk, blind or holding an expired license or driving on a privately owned road.

vnabhi · 8th October 2007, 13:19

AFAIK, the MV Act applies all over India---the rules framed under the act in each state may not be exactly be identical. However, they should not be repugnant to the act.
I don't really think the rules will vary from state to state on the issue of depreciation for plastic parts, or for that matter, any part

Zappo · 8th October 2007, 13:30

Lets give the MV act a short shrift here guys. The issue is whether the Insurace rules (IRDA is the body to control these) anywhere states how the depreciation is calculated on an insured vehicle? If it does then that needs to be checked.

My idea about no 50% depreciation on plastics for a 4 day old vehicle stems from my past experience. If I am not mistaken I was told about this by one of the insurance execs at a dealer's place.

My only worry is whether these are only operational practices and varies between insurance companies. If so then it is difficult. Although if the losses look big I am sure they can still be drawn to the Insurance Ombudsman and then if required even to the consumer courts on this stupid practice (of depreciating the plastics on a 4 day old car by 50%).

emehul · 8th October 2007, 14:17

here i know that insurance company will not pay more than 50% on plastic part for my case but my aim do get guide here is that make people aware that if u buy new car the from the very first day all the plastic part in the car is on own risk only 50% is on insurance company.so i want to make pepople to know that because most of the pepole in mind that car is insured so the are safe for accident loss but its not 100% coverd even if it one day or two day

8th October 2007, 10:35	#1
emehul Newbie Join Date: Oct 2007 Location: Navsari Posts: 3 Thanked: 0 Times	4 day old Car Insurance We Bought NHC ZXi 2 Weeks ago and got full insurance from Reliance before delivery.We have not recived any document from the car dealer yet.On the third day of delivery my father meet with a big accident in that car and carget badly damage from front side bumper and bonet.Car not get rigister with RTO.I sent the car to the dealer landmarkHonda. they gave me the estimate of rs 1,71,000/- for the accident job. In the damge 70% of the parts are plastic so insurance company will give me only 50% of that cost .ultimately i have to pay 50 to 60k to get my car get ready again. I didnet get understand that just 4 days old car with full insurance also i have to pay this much of money the what is benifit of insurance. please help me that is any way that i can claim the insurance company to get more benifit for my accident job.
	() Thanks

8th October 2007, 10:55	#2
Zappo Team-BHP Support Join Date: Oct 2005 Location: Hyderabad Posts: 5,922 Thanked: 2,699 Times	As far as I know that depreciation on plastic kicks in only after the first 6 months of buying. Since yours is a new car (4 days is just that) the Insurance company should pay the complete cost IMO. Check it out and if required threaten to take them to the Insurance Ombudsman. It sounds foolish that the plastic parts will depreciate to half the cost within the 1st 4 days of purchase. And till the issue is sorted out to your satisfaction you should probably not be paying to the dealer any money.
	() Thanks

8th October 2007, 11:12	#3
Ram Senior - BHPian Join Date: Dec 2005 Location: Singapore, Mumbai, Nagpur Posts: 2,166 Thanked: 219 Times View My Garage	Which comes first, registration or insurance? Legally, an unregistered car should not be driven at all, except by the dealer with temporary trade plates which are covered only by trade group insurance. And that insurance is very strict about who is allowed to drive, and under what circumstances the dealer is driving the car. If in an accident without proper license plates, the insurance company can refuse to provide cover. When I took delivery of my new company car, the insurance was fully paid up and the car was registered and had proper black on white license plates. But my company still did not permit the car to be driven until the insurance certificate was issued. The idea was that if an accident were to happen the insurance company could rightly refuse to pay, because the insured period had not yet begun. Insured period and registration number must be written on the insurance certificate, sealed and stamped before the insurance is legally valid. Am I completely mistaken?
	() Thanks

8th October 2007, 11:36	#4
Zappo Team-BHP Support Join Date: Oct 2005 Location: Hyderabad Posts: 5,922 Thanked: 2,699 Times	ram, I think this provision varies from state to state. In UP they drive around a vehicle with A/F written on the number plate (stands for Applied For). I think they allow it to be driven like that for a week or two. Similarly here in AP the moment you buy a vehicle you are given a temporary number plate. Its red on yellow and bears a T/R somewhere in the middle of the number. Something like AP10 BD T/R 2582. They charge a few thousand bucks for this number. One can drive around legally for a month on this temporary plate and after that as well, albeit by paying a penalty for each additional month. So that should not be a problem, provided the state has a provision under its MV rules. Insurance stands valid from the day the car is driven out of the showroom. They can not send you all the documents the day you drive it out. However they give you a covernote that specifically mentions the coverage and its start and end period. As long as you have that with you your vehicle is covered for all eventualities. But the question here is whether the Insurance company is right in saying they will deduct 50% on all the plastic parts when the car is only 4 days old. I think the answer is an emphatic NO. This depreciation thing kicks in only after the first 6 months of purchase IIRC. emehul should get the full reimbursement IMO.
	() Thanks

8th October 2007, 12:05	#5
emehul Newbie Join Date: Oct 2007 Location: Navsari Posts: 3 Thanked: 0 Times	Ya the Car is the with the plate that applied for registration. and the question is not the matter with insurance but my problem is that in the policy paper of insurance the have written that for all rubber /nylon/plastic parts,tyer and tubes,batterise and air bags 50 % deduaction for depreciation in respact of part is replace . Fiber part it is 30 %. and for Glass and other for first 6 months its nil
	() Thanks

8th October 2007, 13:19	#7
vnabhi Senior - BHPian Join Date: May 2007 Location: DC -> DC Posts: 5,958 Thanked: 2,393 Times View My Garage	AFAIK, the MV Act applies all over India---the rules framed under the act in each state may not be exactly be identical. However, they should not be repugnant to the act. I don't really think the rules will vary from state to state on the issue of depreciation for plastic parts, or for that matter, any part
	() Thanks

8th October 2007, 13:30	#8
Zappo Team-BHP Support Join Date: Oct 2005 Location: Hyderabad Posts: 5,922 Thanked: 2,699 Times	Lets give the MV act a short shrift here guys. The issue is whether the Insurace rules (IRDA is the body to control these) anywhere states how the depreciation is calculated on an insured vehicle? If it does then that needs to be checked. My idea about no 50% depreciation on plastics for a 4 day old vehicle stems from my past experience. If I am not mistaken I was told about this by one of the insurance execs at a dealer's place. My only worry is whether these are only operational practices and varies between insurance companies. If so then it is difficult. Although if the losses look big I am sure they can still be drawn to the Insurance Ombudsman and then if required even to the consumer courts on this stupid practice (of depreciating the plastics on a 4 day old car by 50%).
	() Thanks

8th October 2007, 14:17	#9
emehul Newbie Join Date: Oct 2007 Location: Navsari Posts: 3 Thanked: 0 Times	here i know that insurance company will not pay more than 50% on plastic part for my case but my aim do get guide here is that make people aware that if u buy new car the from the very first day all the plastic part in the car is on own risk only 50% is on insurance company.so i want to make pepople to know that because most of the pepole in mind that car is insured so the are safe for accident loss but its not 100% coverd even if it one day or two day
	() Thanks