[centaur]

Ok. That brings me to another question. Suppose there is an accident or damage to a vehicle and the insurance company is informed within the stipulated time period but the repairs are not done, then in that case can insurance be claimed at a later stage to repair that damage?

Also suppose there are some minor damages which are not informed, but then there is a major damage which is informed, then how does this thing work out?

Sorry for the barrage of questions but have been having these doubts for a long time now and want them cleared if possible.

[ghodlur]

Originally Posted by centaur

Can an insurance firm reject a claim because the part being claimed under insurance was not damaged recently?
Now suppose in September the same year, the owner decides to get it fixed because there are lot of other damages to the same part, can the insurance company reject the claim stating that this is an old damage and will not be covered? If yes, then how does one go about it?

Irrespective of the period of claim, Insurance co are only concerned about the area of damage. If the damages are at different locations on the bumper, then Insurance co will force you to file two different claims but they will honour the claim for sure. They cannot refuse a claim saying that the damage had happened in the past. You can come up with n number of possibilities for the damage, surveyor has to be convinced. If the surveyor is sharp and expert, he will realize the damages could have happened at different times.

Originally Posted by centaur

Suppose there is an accident or damage to a vehicle and the insurance company is informed within the stipulated time period but the repairs are not done, then in that case can insurance be claimed at a later stage to repair that damage?

Also suppose there are some minor damages which are not informed, but then there is a major damage which is informed, then how does this thing work out?

I don't think the process of informing the Insurance co about the damage and claiming later works. If you inform the Insurance co about the damage and later some additional damage happens, the Insurance co will refute the claim straightaway saying the latter damages was caused knowingly by you. Hence you file a claim when you want to get the damage repaired.

[saket77]

Third party liability may provide limited covers as compensation if this new law comes into effect. It is proposed that a cap of Rs 10 lacs and Rs 5 lacs to be imposed for payout in case of accidental death and injuries, respectively, as compensation.

Eg. If a court rules for 15 lac rupee compensation to the family of deceased, then the insurer will payout a max of 10 lacs and the vehicle owner will foot the balance Rs. 5 lac bill.

Source: http://www.financialexpress.com/indu...-cover/352439/

[ghodlur]

Originally Posted by saket77

It is proposed that a cap of Rs 10 lacs and Rs 5 lacs to be imposed for payout in case of accidental death and injuries, respectively, as compensation.

Eg. If a court rules for 15 lac rupee compensation to the family of deceased, then the insurer will payout a max of 10 lacs and the vehicle owner will foot the balance Rs. 5 lac bill.

This is daylight robbery. In a way the govt is helping the Insurance co to reduce its liability and increase the profitability. Very bad move. The insurer's contribution till date in case of TPL claims was unlimited. I don't think putting the onus of balance compensation payment is going to make drivers more cautious when on roads.

Ome more news in this regards
http://www.thehindubusinessline.com/...cle8961178.ece

[speedmiester]

Originally Posted by ghodlur

This is daylight robbery. In a way the govt is helping the Insurance co to reduce its liability and increase the profitability. Very bad move. The insurer's contribution till date in case of TPL claims was unlimited. I don't think putting the onus of balance compensation payment is going to make drivers more cautious when on roads.

Ome more news in this regards
http://www.thehindubusinessline.com/...cle8961178.ece

What's the point of taking comprehensive and liability insurance when even the owner's are liable to pay such hefty amounts as compensation. This is another decision made without thinking about the consequences.

[bhavik.1991]

Folks,

I just renewed the insurance for my Jetta Highline DSG. I switched to HDFC Ergo from Videocon Liberty. The agent visited home and collected the amount.

I just received my policy and there is a problem in it. It shows Jetta Comfortline(lower variant) instead of Highline. All other information including IDV are correct. This is a mistake from agent as it is clearly mentioned Jetta Highline in previous policy and RC book and he collected copy of them with the amount.

I will shortly contact the agent and see how he responds. Meanwhile is it safe to drive the car?
I am specially worried about DSG as it is not the part of comfortline variant. If anything happens to it, will it be covered by insurance?

I believe DSG failure is very likely to happen even in a small accident. Ref: http://www.team-bhp.com/forum/test-d...speed-dsg.html

Please advise me how should I proceed with the situation.

[arunphilip]

Originally Posted by bhavik.1991

I just received my policy and there is a problem in it. It shows Jetta Comfortline(lower variant) instead of Highline.

Meanwhile is it safe to drive the car? I am specially worried about DSG as it is not the part of comfortline variant. If anything happens to it, will it be covered by insurance?

Get it corrected via an endorsement, no problem at all there. Is your VIN number in the new policy matching the car's VIN? Also, see that the premium doesn't change ("sir, we calculated premium for the other variant, for this variant the premium is higher").

While that happens, you should be fine to drive, because all the documentation you have indicates its a mistake on the insurer's part, not a mistake (or malicious intent) on your part. The insurance ombudsman should be on your side.

[saket77]

I suggest you get it corrected ASAP by the way the insurers develop a cold feet when paying out big sums. Lets avoid any hassle from our side. It should not take more than a day.
I wonder if this has to be some ploy by insurance agents/ companies as once I had my Civic which is S-MT mentioned as E variant (which was a lower variant).


Regards.

[sdp1975]

I was looking at the Railways Act and the compensation limit is 4 lacs in case of death . ( Source )

Why isn't there a similar upper limit for motor accidents ?

The govt conveniently sets a limit when it has to shell out money , but when it comes to motor cars it helps the insurance companies and passes on the burden to owners.

[Ritzvxi]

Hey,

Story:
That time of the year where I have to renew my car's insurance. My 2012, Aurangabad registered, MS Ritz VXI had an IDV of 3L last year. The current loan amount due should be around 1.8L, I was planning to reduce the IDV to around 2.5L for this year.

Query:
Is there any cap on the percentage by which the IDV can be reduced while renewing car insurance?

[r_nairtvm]

Originally Posted by sdp1975

I was looking at the Railways Act and the compensation limit is 4 lacs in case of death . ( Source )

Why isn't there a similar upper limit for motor accidents ?

The govt conveniently sets a limit when it has to shell out money , but when it comes to motor cars it helps the insurance companies and passes on the burden to owners.

The Railway runs on its "own land" and not on "public land". Technically persons other than railway employees and fare paying passengers have no easement right in any of the railway land - be it station, yard or railway lines (excepting level crossings in a limited way). So (as far as I understand) strictly speaking, the laws of Third Party Liability does not apply to any one intruding in to the path of a train. Legally there is no liability on the part of Railways to compensate for such casualties. But the Government of India has fixed an ex-gratia payment to compensate for such events and that is the limit of INR 4 Lakhs.

The Motor vehicles ply on "Public places" and hence will fall within the purview of laws of Third Party Liability. Here the courts have a jurisdiction to decide on a "fair & just" compensation as per the credentials of the person meeting with the casualty, subject to the principles of third party liability laws - note that there are minimum compensation fixed even for this (by Government of India). Other than the minimum fixed to ensure a minimum compensation, the Government rightly should not interfere with just awards from a court of law.

Yes whether courts are paying any attention to the factors like contributory negligence of the victim etc. is a question for a different debate on its own.

If I am not mistaken - even in case of Railways - a fare paying passenger meeting with a casualty in train accidents (not collision with train)have a recourse to sue the railway for higher compensation.

Yes it does push up the cost of insurance - that is an unfortunate but inevitable consequence.

May be others with legal experience can clarify this further

Best Regards & Drive safe

Ram

[bhavik.1991]

Originally Posted by arunphilip

Get it corrected via an endorsement, no problem at all there. Is your VIN number in the new policy matching the car's VIN? Also, see that the premium doesn't change ("sir, we calculated premium for the other variant, for this variant the premium is higher").

While that happens, you should be fine to drive, because all the documentation you have indicates its a mistake on the insurer's part, not a mistake (or malicious intent) on your part. The insurance ombudsman should be on your side.

Originally Posted by saket77

I suggest you get it corrected ASAP by the way the insurers develop a cold feet when paying out big sums. Lets avoid any hassle from our side. It should not take more than a day.
I wonder if this has to be some ploy by insurance agents/ companies as once I had my Civic which is S-MT mentioned as E variant (which was a lower variant).


Regards.

Thank you for help folks.

I contacted the agent and he said he would get it corrected in next 2-3 days (no extra money demanded). I am still skeptical about it and will also drop an email to hdfc ergo customer support keeping him in CC.

[bhavik.1991]

Originally Posted by Ritzvxi

Hey,

Story:
That time of the year where I have to renew my car's insurance. My 2012, Aurangabad registered, MS Ritz VXI had an IDV of 3L last year. The current loan amount due should be around 1.8L, I was planning to reduce the IDV to around 2.5L for this year.

Query:
Is there any cap on the percentage by which the IDV can be reduced while renewing car insurance?

Upper limit of IDV has to be reduced by minimum 10% every year.
So you can set max 2.7L IDV for your ritz this year. 2.5L seems fare IDV to me.
I am not aware of the lower limit. If there is any, I think fellow bhpians might be able to point it.

Request to mods: Please merge it with my previous post. Apologize for the multiple posts.

[ghodlur]

Originally Posted by Ritzvxi

Is there any cap on the percentage by which the IDV can be reduced while renewing car insurance?

Why would you want to reduce the IDV of the car and under insure it? To reduce the premium? By the depreciation table, your correct IDV should be 2.7L, so the premium calculated for this IDV would not be very costly from the premium calculated for 2.5L IDV. Better to get the car insured at the correct IDV.

[Ritzvxi]

Originally Posted by ghodlur

Why would you want to reduce the IDV of the car and under insure it? To reduce the premium? By the depreciation table, your correct IDV should be 2.7L, so the premium calculated for this IDV would not be very costly from the premium calculated for 2.5L IDV. Better to get the car insured at the correct IDV.

Hi ghodlur,

I am okay with 2.7L as IDV as well, but I was given a renewal quotation from my existing insurer (Royal Sundaram) with the same IDV as last year. Also, I was thinking that as the financial liability of car is down to 1.8L, do I need cover it for a higher amount.

Just seeking information, I am the one to go by the books wherever possible.

Thanks for your immensely helpful insights