Team-BHP - Automobile Insurance Queries? Ask me

QUICK REQUEST:

Can you review the attachment and comment whether I've managed to correctly procure Zero Depreciation cover for my car?

BACKGROUND STORY:

When my 2 year old Fortuner's auto insurance came up for renewal, I started scouring these pages for insight into how to get myself optimum cover with minimum cost. Here's the trigger - while reading Herr Guderian's Togo Channel updates about his Fortuner, I realized that the last year I had paid too high a premium.

So I started soliciting quotes from all around. Putting requests on policybazar type of sites got me some inquiries. Separately, there exists an army of local Direct Sales Agents (DSA's) who are on the lookout of insurance renewals coming up. I dutifully answered all such cold calls and expressed interest. Once the quotes came in, I realized that the elements of the offer were apples and oranges and difficult to fathom how to compare them. I then took the approach of defining my own parameters and then seeking quotes against that. From some of the quotes I divined a practical set of parameters. So I froze on the following:

IDV: 17,00,000
NCB needed: 35% (my current was 25%)
Zero Depreciation cover needed.

I received a new set of quotes. I started sharing the lowest of the quotes with the other parties and seeking them to beat that. Pretty soon I figured out that the insurance company sales folks and the portal folks (like those at policybazar) have limited appetite for bargaining. Whereas the DSA's really stick on like limpets. Since I started this process about a month prior to renewal due date, I had time on my hands. I started playing the DSA's against each other and seeing how much they'd would reduce the premium. Apparently, the DSA's give discount out of the portion of commission that they get from Insurance agencies. I got an inkling that they're willing to forgo 50-60% of that commission. I'd almost settled on renewing with my previous insurer for 32k, when another DSA buckled and agreed for 29k for this insurer. Reading these forums it seemed that this was a decent insurer and at least one of the Toyota dealers in Bangalore (Ravindu) seemed to have cashless tie-up with them. So I went ahead.

I've received the insurance policy today. I wanted your expert eyes to take a look at the policy attached, as to whether the Add-On Package plan mentioned in the Policy Schedule actually amounts to a satisfactory Zero Depreciation Policy. Comments welcome.

Please excuse the fact that I've blackened out portions of the information from the attached because of privacy reasons. Hope what is visible is sufficient information. If not, I am happy to supply necessary parts of the blackened out information.

And thanks to all the experts here who helped in this $$$ savings.

The addon says 'Drive assure welcome'. I cannot cannot confirm whether it includes depreciation shield.

My BA insurance clearly mentions Plan Name: 'Drive Assure Economy' and Plan Description: 'Engine Protector, Depreciation Shield, 24x7 Spot Assistance'.
In your case they have only mentioned Plan Name. Please enquire with BA customer care whether this plan includes Depreciation Shield. Depreciation shield is 0% Dep plan and that is what really matters.

Edit: BA also uses the codes S1, S3, S4 for these plans. S4 is Engine Protector, S3 is Depreciation shield. Please check if you have any additional pages where it mentions these codes for Add-on packages.

Quote:

Originally Posted by harry10 (Post 3462406)

Do we need to approach the insurance company for it or the dealer can do it for us?

You need to approach the Insurance co coz its offered by them and not the dealer. The cost is usually a % of the OD premium and varies from Insurer to insurer. You will need to get it touch with the Insurers for quotes.

Quote:

Originally Posted by Raghav_K (Post 3462426)

Does the NCB gets carried on when you switch insurance companies automatically? Or do we have to get a letter from the old insurer and claim the same with new one?

NCB goes with the owner and not with the car. It is always preferable to get the NCB letter from old Insurer when shifting to new coz it might be asked for in case of claim lodge.

Quote:

Originally Posted by RoadFiend (Post 3464481)

QUICK REQUEST:
Can you review the attachment and comment whether I've managed to correctly procure Zero Depreciation cover for my car?

Hi RoadFiend,
I went through the policy and find that there is definition of Drive Assure and the same being clarified in the notes as tantamounting to Zero Dep. I can't state for certain whether your policy includes that package as there is nothing to show that you have paid an additional amount for that package in the calculations. It's however mentioned in the footnotes as "Add On" - but the calculations don't show any evidence of the payment for it. Please have that checked.
Also in the policy document - normally they show the base premium and then deduction towards special discounts and NCB are mention and the final premium indicated. I don't see that either.
I think you should ask for clarifications from your agent/agency.
Incidentally I find it much better going directly to the insurance company rather than through DSAs etc.
Let's know of the outcome. It'll be a learning.
Good luck !

Quote:

Originally Posted by RoadFiend (Post 3464481)

whether the Add-On Package plan mentioned in the Policy Schedule actually amounts to a satisfactory Zero Depreciation Policy.

Reg the query, as per the document you have been given the add ons of Drive Assure which talks of RSA and zero depreciation. In other words you have bought them, however the details of the costing of the add on and the NCB discount provided isnt seen on the premium computation. You might want to ask BA for that clarification, ask them to give in writing rather than verbal confirmation.

The add on package mentioned in the policy is a satisfatory zero dep .

Needed some sound advice. Sorry if i sound like a dud but Insurance is very confusing, since i have received at least a dozen or so quote letters and even more calls. How does everyone get my information that my car is up for renewal? My Skoda Rapid MPI insurance is due for its first renewal in July.

The original policy is from Bajaj Allianz the IDV is 810,856 and the premium was 25k, renewal quote from Bajaj is IDV 682,827 premium 19k

I have had no claims in the past year, so i'm assuming i will be eligible for a 20% NCB.

Now what would be the ideal/recommended IDV for the renewal, considering depreciation and/or can i opt for a 0 depreciation policy now? The quotes i received vary the IDV from 8L to 6.8L ? Premium ranging from 14k to 22k.

Any and all guidance on how i proceed welcomed please:

Quote:

Originally Posted by KevinP (Post 3465057)

Now what would be the ideal/recommended IDV for the renewal, considering depreciation and/or can i opt for a 0 depreciation policy now?

Kevin,

As per IRDA rules the IDV should be calculated as current exshow room cost of the variant times less the depreciation year in %. In your case it would Exshowroom cost -15%. This is ideal IDV

Other way of looking at is 10% less than last year's IDV which comes around to 7.3L, you will need to get a quote according to this IDV. This is recommended IDV.

You can opt for zero dep since yours is only an year old. But this will be offered as add on along with normal Insurance policy for which you have to pay extra cost in addition to the premium.

Quote:

Originally Posted by Holyghost (Post 3464550)

The subsequent pages does have the 'POLICY WORDINGS
Drive Assure Welcome' and that includes 'S1 - 24x7 SPOT ASSISTANCE' and 'S3 - DEPRECIATION SHIELD'. I called up the customer care and was also told the same.

Quote:

Originally Posted by Guderian (Post 3464679)

I had called the customer care and was told that they aren't providing the breakup of the premium, but the schedule clearly mentions that 'Drive Assure Welcome' is the add-on package with wordings also provided in subsequent pages. Not sure whether I need to do any more diligence on this.

Quote:

Originally Posted by ghodlur (Post 3464688)

Thanks! You're right on the details of costing missing. I've sent an email asking for the break-up of costing, let me see.