Automobile Insurance Queries? Ask me

[ghodlur]

Originally Posted by Irish

Please advise the steps to be followed to transfer the existing insurance policy in the name of seller to the buyer in Delhi.

Its quite a simple process. Make an application for transfer of Insurance ownership to the Insurance co along with the transfer fee. If there is a format available with the Insurance, even more better. Just ensure that you calculate the NCB amount to be returned on pro rata basis if you had claimed the NCB in the policy period.

I hope you have obtained the NCB certificate from the Insurance co if you are eligible.

[Irish]

Originally Posted by ghodlur

Its quite a simple process. Make an application for transfer of Insurance ownership to the Insurance co along with the transfer fee. If there is a format available with the Insurance, even more better. Just ensure that you calculate the NCB amount to be returned on pro rata basis if you had claimed the NCB in the policy period.

I hope you have obtained the NCB certificate from the Insurance co if you are eligible.

Thanks. Actually I am the buyer and my brother in law is the seller. We are going to the RTO for vehicle transfer tomorrow. So I just wanted to know if anything needs to be done w.r.t. the insurance transfer before getting the new RC.

Cheers!
Irish

[ghodlur]

Originally Posted by Irish

Thanks. Actually I am the buyer and my brother in law is the seller. We are going to the RTO for vehicle transfer tomorrow. So I just wanted to know if anything needs to be done w.r.t. the insurance transfer before getting the new RC.

Ok, I though the car ownership transfer was already done. You can submit the same copy of documents which you would submit to the RTO during ownership transfer to the Insurance co too along with an application. Either you or your BIL would have to pay back to the Insurance co the NCB amount if applicable on pro rata basis. The insurance ownership transfer would happen only after the changed Rc is submitted to the Insurance co. Till then atleast the insurance co is aware of the ownership transfer and any claims would be admissible and processed.

[Traveler]

I need a small clarification. I took an NCB Letter for 50% NCB when I sold my previous car last year.

Now I have purchased a new vehicle and the dealer says that the 50% NCB on the new car will be refunded by the company (National Insurance) within 30 days. I have given him the NCB letter issued by my previous insurer.

My question is at the time of next year's renewal, what NCB %age will I get. As I remember I should be eligible for the same NCB %age as I am already at 50% , whereas the dealer says the NCB will be reset to zero as I have taken the NCB discount.

Can someone please clarify this question.

[ghodlur]

Originally Posted by Traveler

My question is at the time of next year's renewal, what NCB %age will I get. As I remember I should be eligible for the same NCB %age as I am already at 50% , whereas the dealer says the NCB will be reset to zero as I have taken the NCB discount.

What I could understand is that you had 50% NCB and you didn't use it when buying insurance for the new car and now you have submitted the NCB letter to the new car Insurance co for the refund. Correct? During the insurance renewal next year, you will still be eligible for 50% NCB provided you do not have any claims in the policy period. If you claim insurance, your NCB will become zero during renewal.

The dealer is taking you for a ride, dont list to him. If in doubt clarify with the Insurance co rather than the dealer.

May I ask why did you take the Insurance from the dealer for the new car?

[Traveler]

Originally Posted by ghodlur

What I could understand is that you had 50% NCB and you didn't use it when buying insurance for the new car and now you have submitted the NCB letter to the new car Insurance co for the refund. Correct? During the insurance renewal next year, you will still be eligible for 50% NCB provided you do not have any claims in the policy period. If you claim insurance, your NCB will become zero during renewal.

The dealer is taking you for a ride, dont list to him. If in doubt clarify with the Insurance co rather than the dealer.

May I ask why did you take the Insurance from the dealer for the new car?

Thanks for your reply. You are right. The NCB %age indeed carries over to the new policy (Provided you don't have any claims). I got it clarified by the dealer. Apparently he wasn't too sure either and had to confirm.

I got the insurance from the dealer since I am not present there physically and the vehicle is for my Dad. It was pure convenience decision. Thanks once again.

[BertieWoosert]

I have looked at the various threads on this topic, but not sure I have understood the details, hence posting my query afresh.

I sold my old car to Cars24.com (without insurance transfer), and have already received the payment. I have booked a new car, which has been allotted, and I need to initiate the registration process. I have accumulated NCB of 50% on my current policy, which I was hoping to use for my new car's first premium. However, upon speaking with the insurance company, I came to know that they would need a copy of the new insurance policy in the name of the new owner before they can issue such a certificate. Essentially they need a proof of sale to the new owner and RC transfer.
Is this true? Is there any other way to get this beforehand? For example - by cancelling / surrendering my insurance policy?

What I was also told is that I should renew the third party insurance (when it expires in March), if there is no new owner till then. Is this true? In case the dealer inordinately delays selling the vehicle, do I need to forever keep track and keep renewing the third party portion? I have a letter from cars24 saying they have taken physical delivery of the vehicle - does it not rid me of all my liability?

For now, it seems the only option is to pay the full premium for the new car, hope there is a buyer for my old car soon, and then claim a NCB refund.

Any other suggestions/advice?

[ghodlur]

Originally Posted by BertieWoosert

Is this true? Is there any other way to get this beforehand? For example - by cancelling / surrendering my insurance policy?

What I was also told is that I should renew the third party insurance (when it expires in March), if there is no new owner till then. Is this true? In case the dealer inordinately delays selling the vehicle, do I need to forever keep track and keep renewing the third party portion? I have a letter from cars24 saying they have taken physical delivery of the vehicle - does it not rid me of all my liability?

Ah, the perennial question related to sale of car to a dealer.

With regards to your first query:
Since you have sold the car to a dealer, the dealer will take time to initiate the car ownership transfer till he finds a customer for your car. Until the car ownership transfer happens and RC is updated with new owner details the Insurance co will not provide you the NCB certificate. What they can provide is an endorsement of the NCB eligibility on an application from your end. This endorsement is more than sufficient to use while buying insurance for the new car. If dealer tells you any thing different, tell him that you will buy Insurance from outside. If the dealer is promising you free insurance, still insist on buying insurance from outside and ask dealer to compensate the insurance cost as additional discount from the car cost.

Your second query:
If the insurance on the car you sold has a valid insurance, then it is upto the dealer to renew the same after it expires. You need to ensure that the forms 28, 29 & 30 along with the delivery note & Insurance policy copy which you & dealer have signed are available with you even if its a copy. Make a couple of copies of these documents and send them to the RTO where your old car was registered with a letter explaining the sale of the car to the dealer (include the dealer's address and contact details) and also to the Insurance co. This in a way will absolve your liability although not completely (unless the actual car and Insurance ownership transfer happens and you get an intimation of the same)

[BertieWoosert]

Originally Posted by ghodlur

Ah, the perennial question related to sale of car to a dealer.

With regards to your first query:
What they can provide is an endorsement of the NCB eligibility on an application from your end. This endorsement is more than sufficient to use while buying insurance for the new car. ..
...
Your second query:
You need to ensure that the forms 28, 29 & 30 along with the delivery note & Insurance policy copy which you & dealer have signed are available with you even if its a copy.
...

Thanks a lot for your reply. On the first point, is there a prescribed format for the application, or is it simply a letter that I write to them, asking for NCB endorsement? I am dealing via Maruti Insurance, and will take insurance from the same insurer again (New India). The insurance person at Maruti mentioned he may be able to get the NCB benefit, based on the possession letter provided by Cars24. I am going to speak to him in person tomorrow.

On the second point, my understanding is that the Forms 28, 29 and 30 will be signed by the new buyer and not the dealer. So, I do not have a copy of them, till the new buyer is found. Did I miss something here? Will it help if I send the copy of the possession letter to the RTO, mentioning that the forms will follow once the new buyer is found?

One more point - the Maruti insurance person told me that the actual NCB benefit will be restricted to the benefit amount in the current old car's policy (~1,200), which is based on the IDV of the old car (~1,00,000). Is that correct? My understanding was that it would be 50% of the new car premium (so 50% of 20,000 or so), irrespective of whatever the IDV of the old car was.

[ghodlur]

Originally Posted by BertieWoosert

On the first point, is there a prescribed format for the application, or is it simply a letter that I write to them, asking for NCB endorsement? I am dealing via Maruti Insurance, and will take insurance from the same insurer again (New India). The insurance person at Maruti mentioned he may be able to get the NCB benefit, based on the possession letter provided by Cars24. I am going to speak to him in person tomorrow.

No prescribed format, a simple application letter stating the purpose of NCB eligibilty due to old car sale is sufficient. Hand a copy of the this letter to the new car insurance co to avail the NCB discount. If same Insurance co, more so better as they would readily do so since the business stays with them itself. Attach the delivery note received from 24 cars.

On the second point, my understanding is that the Forms 28, 29 and 30 will be signed by the new buyer and not the dealer. So, I do not have a copy of them, till the new buyer is found. Did I miss something here? Will it help if I send the copy of the possession letter to the RTO, mentioning that the forms will follow once the new buyer is found?

Agreed that the forms will have new buyers signatures but the forms will be counter signed by the dealer as assurance that the required forms are provided for the car ownership transfer. Get the copy of the same from 24 cars. If possible get a letter from 24 cars regarding the nullifying of your liabilities. Initially they would hesitate, but with a coaxing they will provide the same. Now this along with the forms and Insurance co bundle, send to the RTO with a letter explaining the sale. Do the same to the Insurance co too.

One more point - the Maruti insurance person told me that the actual NCB benefit will be restricted to the benefit amount in the current old car's policy (~1,200), which is based on the IDV of the old car (~1,00,000). Is that correct? My understanding was that it would be 50% of the new car premium (so 50% of 20,000 or so), irrespective of whatever the IDV of the old car was

Maruti Insurance guy is BSing you. The NCB is always in % and not in amount irrespective of the IDV of the old car. Since you are eligible for 50% NCB, when you buy new car insurance, this is the figure that will be applied while calculating the insurance.

[anandpadhye]

I got the registration number for my new car from Pune RTO 2 days back via SMS. The SMS says the RC is under preparation. I have bought the insurance on my own (not from dealer) and as the insurance policy copy is mandatory for registration, the insurance was bought based on VIN and Engine number. Today I shared the registration number with insurance company and asked them to update the same on the policy, but they need a copy of RC. As the RC may take upto 90 days to arrive, what's the standard operating procedure in this case? Can I just leave it like this until I get the copy of the RC? I don't want any problems in claim processing (should there be a situation) in the interim.

Thanks in advance!

[blackwasp]

Originally Posted by anandpadhye

As the RC may take upto 90 days to arrive, what's the standard operating procedure in this case? Can I just leave it like this until I get the copy of the RC? I don't want any problems in claim processing (should there be a situation) in the interim.

My first year policy was not having the car number. It was updated in their records only on renewal. But I had sent them an email when I had got my number - I had done self registration, so I got the number the same day. But my RC book took almost 6-7 months to come. To tackle this, I had got my tax receipt stamped by the RTO with words - RC delay due to printing'. Apparently, there was a change of contractor for the printing paper so RTO themselves had come up with the solution.

I also spoke with a claims agent who said that you can also get vehicle details from RTO by paying a small fee (Rs. 50 IIRC) and submitting it to them incase you have to claim. Try asking if they'll update your policy on basis of this.

[libranof1987]

Originally Posted by anandpadhye

As the RC may take upto 90 days to arrive, what's the standard operating procedure in this case? Can I just leave it like this until I get the copy of the RC? I don't want any problems in claim processing (should there be a situation) in the interim.

A typical problem in Pune considering how long it takes to get the RC.

I got the Insurance done through my agent as well; all he needed to open a policy was the VIN/Engine no. He assured me that there would be absolutely no problem in any claims if the reg. no. was not printed.

When I renewed the policy the following year, he updated the reg. no. on the policy. You can get the RC Extract in the meanwhile, just to be on the safer side.

Also, just to assure you: while on a Pune-Goa drive 9 months after I'd bought the car, I was stopped at a toll naka during a routine nakabandi. Told the cop I didn't have the RC because I haven't received it yet and he didn't make a fuss of it. Clearly, they've got the memo from RTO about delays too.

Originally Posted by blackwasp

I also spoke with a claims agent who said that you can also get vehicle details from RTO by paying a small fee (Rs. 50 IIRC) and submitting it to them incase you have to claim. Try asking if they'll update your policy on basis of this.

It is called an RC Extract. Takes about half n hour and Rs. 100ish to procure.

[ashwin49]

Originally Posted by a_micky

Hi,
I have a icici Lombard 4wheeler insurance issued through maruti dealer while purchasing the car last year. It is time for renewal and the dealer is quoting 19K with very low idv of 7.2L Policy baazar is providing option to increase the idv to 8L and premium of 13K with zero dep and roadside assistance.
Existing policy includes zero dep, engine protect, return to invoice price, driver and co passenger accidental cover of 2L each for 7 passengers. Maruti insurance states all components of existing policy will carry forward to renewed policy. Don't need engine protection and return to invoice but would like higher idv. Would you recommend availing the insurance thru policy baazar?

@micky - Whats your experience with moving away from Maruti Insurance ? I want to pick up Tata AIG directly as they mention that most big dealers have cashless facility in Bangalore at least.

[rajeshekm]

Looking for some advice on the below.

While my father was driving our car (2006 Getz), an auto hit from the left side, causing some denting on both front and back doors on the left side.
There is also trouble opening the car front left car from the outside (due to the denting, there is something mechanically blocking when we pull the door flap from outside).

Any idea if it makes sense to go for insurance claim for this repair or get it done from outside?
Currently insurance amount per year is about 5,600 with a 50% NCB (coming to Rs 2,200).

I'm planning to take it to the service center tomorrow. But would be good to get an idea.
I know that for metal parts only 50% would be covered (since vehicle is more than 10 years old). How about cost of painting and labour ?