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Old 11th April 2012, 21:24   #1966
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Default Re: Automobile Insurance - Ask me

Need some advise. I have my insurance renewal due shortly. My vehicle was purchased in April 2011.

What percentage of depreciation would be applicable and on what value when I get the insurance renewed this time.

ICICI has told me that that will calculate IDV after deducting 20% on the ex-showroom invoice price. While Bharti AXA says that will calculate after deducting 10% on the ex-showroom price.

I looked up the table printed on the Bharti AXA policy document and that states the following

Age of vehicle - Not Exceeding 6 months - 5%
Age of vehicle - Exceeding 6 months but not exceeding 1 year - 15%
Age of vehicle - Exceeding 1 year but not exceeding 2 years - 20%

As per my understanding the IDV for my vehicle should be calculated after deducting 20% as above since my vehicle will be more than 1 year but less than 2 years for the new policy that I am going to take.

I am confused as to what is the right method to calculate IDV as per IRDA norms. Any insight will be really helpful. Both Bharti and ICICI are insisting that they are calculating as per IRDA norms.

Any insight will be really helpful.
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Old 12th April 2012, 08:03   #1967
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Quote:
Originally Posted by srishiva View Post
Insured Declared Value (IDV): 784975
Premium Estimate* : 17938
If the IDV equals to 20% less than the present exshowroom cost then the IDV quotes is correct. To check whether the premium is fair, you need to get a cost comparator. Try online quotes from other Insurers and compare. Suggest you to opt for zero% depreciation since your car is new.

Quote:
Originally Posted by Traveler View Post
As per my understanding the IDV for my vehicle should be calculated after deducting 20%
Your understanding is correct, it is 20% of the present ex show room cost and not the ex showroom cost when you purchased the car. Suggest you to check the present exshowroom cost and depreciate by 20%. Pls note most of the Insurers dont have an updated exshowroom cost in their records, so when they quote they still calculate based on what value is there in their records.
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Old 12th April 2012, 16:59   #1968
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Quote:
Originally Posted by ghodlur View Post
If the IDV equals to 20% less than the present exshowroom cost then the IDV quotes is correct. To check whether the premium is fair, you need to get a cost comparator. Try online quotes from other Insurers and compare. Suggest you to opt for zero% depreciation since your car is new.


Your understanding is correct, it is 20% of the present ex show room cost and not the ex showroom cost when you purchased the car. Suggest you to check the present exshowroom cost and depreciate by 20%. Pls note most of the Insurers dont have an updated exshowroom cost in their records, so when they quote they still calculate based on what value is there in their records.
Thanks a lot for all of your responses. I finally got the insurance today from Tata AIG. They calculated the IDV at 15% and gave me a decent deal with an additional Silver Cover which protects the NCB in case of claims where there are no parts replaced and only repair work is carried out.
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Old 13th April 2012, 12:53   #1969
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Default Re: Automobile Insurance - Ask me

Anyone has experience with L&T insurance.
I got a call from them for my civic, and the quote is too good to be ignored.

While the others are hovering around 10 - 11K for an IDV of 5 lakhs, these guys are telling 8.8K

Any advice about L&T? Any experiences?
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Old 13th April 2012, 14:54   #1970
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Default Re: Automobile Insurance - Ask me

I think these tables arose since earlier the IDV was whatever was fancied. The Insurer / agent never depreciated the car since this way they got more premium. There was a lot of litigation when a claim was made. This table made it mandatory for the insurer to honour the IDV. One point though, many dealers in trying to minimise teh cost do not include the Road Tax in the initial IDV calculation.
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Old 13th April 2012, 16:57   #1971
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We have recently transferred ownership of a car, and contacted the insurance company for transfer of the policy. The procedure outlined by the insurance company involves physical inspection of the car. Since the car has been bought from another town, it's rather inconvenient to drive out there and get the insurance formalities completed. At the same time the procedure outlined by the company includes a 'new proposal' and transfer of the NCB from the original policy.

Is this similar to taking out a new policy?

If so, can a new policy be taken from a different insurance company? Do we lose the NCB from the original insurance company?

Till the insurance policy is transferred/purchased in the new owner's name, what is the status of the car's insurance? Is it insured or not?
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Old 15th April 2012, 22:39   #1972
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Default Re: Automobile Insurance - Ask me

Quote:
Originally Posted by laluks View Post
Anyone has experience with L&T insurance.
I got a call from them for my civic, and the quote is too good to be ignored.

While the others are hovering around 10 - 11K for an IDV of 5 lakhs, these guys are telling 8.8K

Any advice about L&T? Any experiences?
They are doing good. They give good discounts since they are relatively new to market. Nothing to worry about.
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Old 16th April 2012, 12:46   #1973
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Quote:
Originally Posted by honeybee View Post
We have recently transferred ownership of a car, and contacted the insurance company for transfer of the policy. The procedure outlined by the insurance company involves physical inspection of the car. Since the car has been bought from another town, it's rather inconvenient to drive out there and get the insurance formalities completed. At the same time the procedure outlined by the company includes a 'new proposal' and transfer of the NCB from the original policy.

Is this similar to taking out a new policy?

If so, can a new policy be taken from a different insurance company? Do we lose the NCB from the original insurance company?

Till the insurance policy is transferred/purchased in the new owner's name, what is the status of the car's insurance? Is it insured or not?
There are two ways of doing this.
1) Go for the existing Insurer and try to find out if the physical inpection can be done by the branch office in your city. They can then forward the information to the other town office for the transfer formalities.
2) Go for a new Insurer which will still require inspection but opt for Insurer who is in your town/city.
In either cases it will be a new proposal since the ownership has changed. The NCB will remain with the original car owner. However if you have NCB in your name then you can use the same with the new Insurance policy. Ensure details such as policy period, premium paid etc are inline with the existing. IMO till the transfer takes place the old policy can still be in existence, needs to be verified.
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Old 17th April 2012, 12:04   #1974
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Default Re: Automobile Insurance - Ask me

Update on my Baleno Insurance, went to HDFC ERGO Car Insurance to get a quote. Somehow their system refused to accept 2.88L as the IDV of my Baleno and they recommended it to be 2.5L, hence the premium dropped to about 7K. This wasn't apples to apples comparison so i decided to go ahead with Bajaj Allianz. Premium came to 9K with 35% NCB for an IDV of 2.88L. Third party cover cost ~2-3K, i guess it used to be few 100 Rupees, quiet bad in my opinion.
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Old 22nd April 2012, 01:18   #1975
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Hi,

I have a 2003 santro which has been insured by bajaj allianze since 2007, and I have made no claims in this period. I work abroad for many months at a stretch, and my policy expired when I was away recently. I tried getting a new policy from icici and they refused..citing that my insurance was not continuous and there were some dents in the car (which Mumbai car doesn't !)..tried contacting bajaj to renew and they asked me to go to a branch and only after inspection will a new policy be issued..
Question - why is this such a big deal?..and what's the easiest way to get my car insured..considering the age of the car, and the fact that it had a covered and secured parking should I just go for the 3rd party cover , as the bare minimum required legally?
Any tips would be helpful
- Umesh
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Old 22nd April 2012, 10:04   #1976
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Default Re: Automobile Insurance - Ask me

Hi,

Can somebody tell me about depreciation? If the car is 5-6 years old and there is a claim then would depreciation be applicable to all parts or just rubber glass etc? How do you know the depreciation applicable to your vehicle?
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Old 23rd April 2012, 09:59   #1977
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Default Re: Automobile Insurance - Ask me

Quote:
Originally Posted by Umesh D View Post
Hi,

I have a 2003 santro which has been insured by bajaj allianze since 2007, and I have made no claims in this period. I work abroad for many months at a stretch, and my policy expired when I was away recently. I tried getting a new policy from icici and they refused..citing that my insurance was not continuous and there were some dents in the car (which Mumbai car doesn't !)..tried contacting bajaj to renew and they asked me to go to a branch and only after inspection will a new policy be issued..
Question - why is this such a big deal?..and what's the easiest way to get my car insured..considering the age of the car, and the fact that it had a covered and secured parking should I just go for the 3rd party cover , as the bare minimum required legally?
Any tips would be helpful
- Umesh
Umesh, anytime there's a break in the insurance policy, even of a day or two, the insurance company won't sell you a new policy without inspection. This applies to both the comprehensive as well as the third party insurance policies. I have two personal experiences to substantiate this.

My personal suggestion would be to stick to your existing insurance company, take the vehicle to your nearest branch for inspection and get the policy asap. Once you have an active policy for the vehicle, you can next year switch to a cheaper company if you like.

And please note: don't drive the vehicle without a valid insurance policy.
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Old 23rd April 2012, 15:06   #1978
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Default Re: Automobile Insurance - Ask me

Guys,

I've my existing car policy with BA and its due for renewal by April 29. I bought it online last year (same day for my bike and car).

I'm planning to buy a new car and it may get delivered by May/June or may even be later than that.

I have got 50% NCB on my last renewal for my existing car and want to make use of it when I buy my new car policy a couple of months down the line.

I have aske BA to provide me the NCB certificate that I want from them on my existing car and I would not need the NCB on my existing car when I renew. They said that they cannot provide NCB certificate unless I'm seeling my car. Is this true?

What do you think are my options to make use of NCB for existing car that I have accumulated when I buy a new car a couple months later from now. if its really necessary to sell the car, in that case, I may have to think about transferring ownership to a family member! I dont know if that will be too much of hassels to go for the savings on my new car insurance with this NCB (I'm considering it to be high for XUV 500 W6).
Please advise.
Thank you.

EDIT: Another thing I forgot to mention, this car that I'm planing to buy will be in the name of company (lease). I doubt that if I will be able to transfer the NCB (car in my name) to a new car in co. name. Can someone please confirm?

Last edited by Ketan : 23rd April 2012 at 15:14.
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Old 23rd April 2012, 18:25   #1979
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Default Re: Automobile Insurance - Ask me

Both your guesses are right: You cannot avail of the NCB against your new car's insurance unless you are selling your old car, and if you are buying the new car in the name of your company, you cannot transfer the NCB of your old car to the new one (since it's not in your name).
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Old 24th April 2012, 12:18   #1980
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Default Re: Automobile Insurance - Ask me

Have a insurance renewal query regarding my wife's company-leased car. The car is owned by The Financing company and my wife's company is just the registered owner with her being the registered user. We have just completed a claim-free year and wanted to know if she is eligible for NCB or not. The first year's amount was capltalized along with the cost of the car and is thus built-in to the EMIs.

As she is the registered user and has completed a claim-free year, is she eligible for NCB?
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