Team-BHP - Automobile Insurance Queries? Ask me

Am in the market for a pre-owned Tata Safari Storme - the EX variant 2014 model .

My questions are:

[] If the owner agrees to transfer the insurance on the vehicle & it is possible to do so , what is the process to be followed to ensure that the transfer of insurance cover happens simultaneously with the change of ownership .

[] Given that the policy of the vehicle in question is up for renewal in September , if I opt to change the insurer which insurer is recommended ? Any specific clauses that I should opt for ?

If it’s within the same city rc transfer should take three or four days max. Insurance will need an endorsed to your name rc before they agree to transfer ownership. New insurance policy will also demand a rc in your name.

If you have an accident before the vehicle is in your name and insurance has been transferred you had better hope that you bought from the direct owner not dealer and that he is willing to put in a claim under his name.

Quote:

Originally Posted by hserus (Post 4243277)

If it’s within the same city rc transfer should take three or four days max. Insurance will need an endorsed to your name rc before they agree to transfer ownership. that he is willing to put in a claim under his name.

Transaction is between registered owner of the vehicle and me.

In spite of the above , banking on someone's goodwill / kindness to meet a statutory compliance -even if transiently - does not make sense to me at least. Is there no work around to ensure that this is not left to 'chance'?

Also the vehicle will be financed and the loan officer I am dealing with has tentatively indicated that the bank will disburse on the execution of the loan agreement by me and transfer documents by the seller , would the bank not insist on valid insurance prior to disbursement ?

Quote:

Originally Posted by tp_dominator (Post 4241925)

The premium seems to be on the higher side since they have given you 30% discount on your OD premium.

If you are buying from the showroom itself, I presume it's Honda Assure insurance with Bajaj being a partner in it. If my knowledge serves me right, the maximum discount available on Honda Jazz is 45% in the program. Negotiate more with the agent and he will have to provide you the same.

Talk to your agent in terms of this discounting thing and chances are that he might reel in and reveal the max discount available.

Also, seek a clarification on the add on covers provided in the policy since the premium for add on seems to be on the higher side. In Honda Assure, zero depreciation and engine protector add on covers are sold as a single add on product. But, looking at the premium, they might be offering you more.

Hope this helps!

Hi, Today I went to showroon and here is what the sales guy told me

They are giving me 25% dicount on OD premium and 20% on NCB.So total of 45%

Even without addon my package still covers bumper to bumper but with addon I just need to be Rs1000 + taxes for any damages.Without addon I need to pay 50% damages and other 50% is paid by insurance.Does this sound ok?

Quote:

Originally Posted by SKB (Post 4243614)

This total 45% discount thing is totally false. NCB is your right and you will get 20% since you did not make any claim last year. The NCB amount is calculated on the discounted OD premium. So its not totally 45%.

Secondly, I enquired and got to know that max discount for Jazz is 40%. So my suggestion to you is take an online quote also from Bajaj's website for your car and show it to the person there. He will have to then match it.

Thirdly, this bumper to bumper thing is a marketing gimmick. Obviously if you are purchasing an insurance for your car (comprehensive) it covers your own damage too. Ask the person for a detailed info on the parts covered in your add on package, ask them to give you a quote on 40% OD discount and then you are good to go.

Alternatively, you can approach another dealer in your city for the quote. They might provide you the higher discount and at the same time it being a Honda Assure insurance, you won't face any difficulty anywhere at all.

The bank will typically ask you to submit the RC and insurance xerox copies to them as soon as the transfer takes place. They understand this takes a few days.

They will not be as understanding if you crash the car before the transfer takes place and insurance can't be claimed. So please be patient for 4..5 days before you take the car out. Till then, leave it in the garage or authorized service centre for any necessary fix up work, servicing etc that may be needed.

Quote:

Originally Posted by fine69 (Post 4243838)

Tata AIG and New India Assurance transfer the car insurance policy on Form 29 & 30 also, they don't need the RC transfer.

I got the insurance transfer done within a day once Form 29 & 30 reached me.

Many insurers will issue a provisional policy. But just try claiming when the rc is in one name and insurance is in another.

There's at least one post on tbhp about someone who bought a pre owned jetta, took it onto the highway before rc transfer had been done, but insurance had been provisionally issued to his name.

He hit a dog causing 40k worth of body damage as estimated by VW ASS, so he was hunting for replacement parts from pudupet (chennai's chor bazaar for auto parts) so that he could minimize his costs. Besides even if the insurance would cover it, a lot of damage was to plastic parts for which only 50% would be given.

Quote:

Originally Posted by hserus (Post 4243844)

Many insurers will issue a provisional policy. But just try claiming when the rc is in one name and insurance is in another.

Yeah you did warn me about the Jetta incident but when I wrote to Tata AIG they said that even Form 29/30 or Sale letter would work.

I decided to give it a try and the inspection as well as the transfer was done the same day. I did have to visit the Tata AIG branch twice. If I had the Fortuner with me he could've arranged for inspection at the branch only and saved me the second trip.

You can definitely claim the insurance even if RC transfer is in progress. The insurance company can decide to refuse anything but if insurance is transferred based on sale letter they know that RC transfer is in progress. My dad is with United Insurance from last 1 year and has worked for New India Assurance all his career before it so he did confirm that claims have been given in such cases.

In fact, even when the insurance transfer hasn't happened claims have been given if the new owner can prove the sale but the consumer court process would definitely take some time.

As for plastic parts, if one has paid extra premium for 'Depreciation Reimbursement' then they will have to pay nothing for damage to glass & plastic parts also.

My car's previous owner opted for it and after I paid the NCB deductible everything was transferred as it was. Special clauses like Depreciation Reimbursement, Emergency transport, hotel expenses etc. are mentioned in the certificate explicitly.

Sam Kapasi paid nothing (except for some processing fee) when his Superb was hit just because he had depreciation reimbursement add:on in his insurance policy.

EDIT: Add-ons like Depreciation Reimbursement, hotel expenses, travel etc. are so much worth the extra premium when dealing with an expensive car. I never knew about this till a few days ago but now I will ensure that I keep this add-on because in a car like Fortuner the maximum probability of damage is going to be of bumper, claddings & lights.

Quote:

Originally Posted by tp_dominator (Post 4243706)

Thank you so much.Newbie question, how do I know the discount amount I am getting for my OD premium.Is there a way I can calculate to know that I am getting 25% discount

Quote:

Originally Posted by SKB (Post 4244431)

Thank you so much.Newbie question, how do I know the discount amount I am getting for my OD premium.Is there a way I can calculate to know that I am getting 25% discount

There is definitely a way. According to the tariff provided by IRDA, your vehicle falls in A zone in the 1000-1500 Cc engine capacity. So, take 3.283% of your vehicle's IDV which is your basic OD premium. Then, apply the discount (suppose 25%) on your basic OD. The 12,xxx figure in your quote and this is how you can know the discount given!

Quote:

Originally Posted by vinu_h (Post 4250479)

Since an insurance policy is issued prior to registration of a new vehicle, my policy does not have a mention of the registration number. The insurance company says that they will include it during renewal. As per them, if the VIN and engine number are listed right in the policy, the car is covered. Is this ok ?

Yes that is OK. As long as the engine and chassis no along with the Insured's name and address are Ok there should be no problem at all. You can get the registration no updated either during renewal or during the current policy too. In the current policy it will not reflect in the policy document but will appear as an addendum.

My insurer is offering me 6.19lacs as IDV for my 2 year old vehicle. However, I have asked him to increase the IDV to 7 lacs (with corresponding increase in basic premium). I have two questions in this regard:
1. Does the zero depreciation add on cost also increase with increase in IDV (like in my case)?
2. How is the depreciation calculated in the event of a "total loss"? Is it calculated on 7 lacs or will they go back to 6.19 lacs for calculating depreciation?

Thanks in advance.

Quote:

Originally Posted by feluda86 (Post 4253227)

1. Does the zero depreciation add on cost also increase with increase in IDV (like in my case)?
2. How is the depreciation calculated in the event of a "total loss"? Is it calculated on 7 lacs or will they go back to 6.19 lacs for calculating depreciation?

1- Everything is proportional and ever increasing in India :Frustrati

2- IDV or Market price whichever is LESSER! will be paid in case of total loss.

I wouldn't recommend a higher IDV after the first 2-3 years when your bumper to bumper no dip covers end.