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Old 24th October 2018, 15:21   #4381
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Default Re: Automobile Insurance Queries? Ask me

Insurers badly hit by the Kerala floods. Most of the exposure is from the automobile segment and mostly by the PSU players.

https://www.moneycontrol.com/news/bu...e-3079081.html

When damages paid surpass the collective premiums collected, its underwriting loss for the insurer. Wondering if this will this spark another round of increase in the premiums.
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Old 24th October 2018, 15:42   #4382
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Originally Posted by saket77 View Post
Insurers badly hit by the Kerala floods. Most of the exposure is from the automobile segment and mostly by the PSU players.

When damages paid surpass the collective premiums collected, its underwriting loss for the insurer. Wondering if this will this spark another round of increase in the premiums.
Very good question! I do think it will nudge premiums upwards :-(.

The actuaries at insurance companies will definitely have observed the trend of extreme weather patterns and poor infrastructure that combine to cause flooding in urban and rural areas (e.g. Chennai in 2015/2016, Kerala/Nagaland in 2018, etc.), and will aim to mitigate the risk.

The cost of reinsurance (i.e. insurance taken by insurers) will also go up as insurers seek to further indemnify themselves against such large-scale events, and that cost is also likely to be passed on.
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Old 29th October 2018, 22:01   #4383
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We're renewing the insurance on a 2015 Polo Comfortline (1.2 MPI Petrol) and the IDV is stated to be 2,75,000. This seems rather low considering the resale value of the car. The insurer is Bajaj Allianz and it's been the same policy since the car was bought new. The quote on coverfox for Bajaj Allianz is the same but has a much higher IDV (4,15,000).

Can I get them to match the online quote? Or should I just switch providers?

Last edited by McLaren Rulez : 29th October 2018 at 22:31.
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Old 30th October 2018, 08:05   #4384
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Originally Posted by McLaren Rulez View Post
We're renewing the insurance on a 2015 Polo Comfortline (1.2 MPI Petrol) and the IDV is stated to be 2,75,000. This seems rather low considering the resale value of the car. The insurer is Bajaj Allianz and it's been the same policy since the car was bought new. The quote on coverfox for Bajaj Allianz is the same but has a much higher IDV (4,15,000).

Can I get them to match the online quote? Or should I just switch providers?
The IDV stated by Bajaj allianz must be based on 10% less than last year's IDV. To calculate the correct IDV, use the depreciation table in the policy wordings document. The correct IDV should be 30% less than the ex show room cost of the car.

Parallely you could send the screenshot of the BA quote on coverfox to get the IDV normalized.
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Old 30th October 2018, 09:05   #4385
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Originally Posted by ghodlur View Post
The IDV stated by Bajaj allianz must be based on 10% less than last year's IDV. To calculate the correct IDV, use the depreciation table in the policy wordings document. The correct IDV should be 30% less than the ex show room cost of the car.

Parallely you could send the screenshot of the BA quote on coverfox to get the IDV normalized.
My 7 year old Yeti is due for renewal of insurance. The present (adjusted last year) IDV is 10 Lac.
I wish to keep it at the same level since the condition of the vehicle is the same as last year and has been driven around 5000 kms in the intervening 12 months since the last Insurance renewal.
Saying this, I ve knocked off the Zero Dep because it is any way not offered any more. The vehicle is out of warranty etc.
I m looking at standard comprehensive insurance with co passenger cover of the max available - 2 lacs.

Last year, I paid Rs 22K premium. This year, with the adjusted IDV the premium is coming to 23K.

Ive remained with the same insurer Bajaj Allianz, for the last 7 years. In end Nov, when the renewal is due, it will be for the 8th year running.

So far no claims, so I get 50% NCB.

Are there any better alternatives? Can anyone suggest what the sensible steps for achieving this are?

Any input would be appreciated.

Thanks
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Old 30th October 2018, 19:11   #4386
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Quote:
Originally Posted by shankar.balan View Post
The present (adjusted last year) IDV is 10 Lac.
I wish to keep it at the same level since the condition of the vehicle is the same as last year and has been driven around 5000 kms in the intervening 12 months since the last Insurance renewal.

I m looking at standard comprehensive insurance with co passenger cover of the max available - 2 lacs.
IDV is no way related to the condition of the car, purely depends on the depreciation due to ownership. Could not understand why would you want to keep the IDV same as last year, suggest to depreciate it by 10% than last year's IDV.

Does the BA quote of Rs 23K is inclusive of the Compulsory Personal Accident cover premium of Rs 750/- for a cover of Rs 15L? Did you check Coverfox, Digit, Acko for an alternate quote just for comparison purpose?

One add on cover which you could opt for is NCB protection which will not reduce your NCB to zero in case of any claims.
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Old 30th October 2018, 19:29   #4387
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Default Re: Automobile Insurance Queries? Ask me

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Originally Posted by shankar.balan View Post
Are there any better alternatives? Can anyone suggest what the sensible steps for achieving this are?

Any input would be appreciated.

Thanks
Try Acko, heard they are cheapest . Not sure if the IDV is configurable with Acko. Every year your car depreciates and hence the IDV, now since you want same IDV as last year, your premium is higher. Unless you plan to put your car on total loss, higher IDV is not going to be of much help.
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Old 1st November 2018, 19:45   #4388
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Default Re: Automobile Insurance Queries? Ask me

Quote:
Originally Posted by shankar.balan View Post
My 7 year old Yeti is due for renewal of insurance. The present (adjusted last year) IDV is 10 Lac.
I wish to keep it at the same level since the condition of the vehicle is the same as last year and has been driven around 5000 kms in the intervening 12 months since the last Insurance renewal.
Saying this, I ve knocked off the Zero Dep because it is any way not offered any more. The vehicle is out of warranty etc.
I m looking at standard comprehensive insurance with co passenger cover of the max available - 2 lacs.

Last year, I paid Rs 22K premium. This year, with the adjusted IDV the premium is coming to 23K.

Ive remained with the same insurer Bajaj Allianz, for the last 7 years. In end Nov, when the renewal is due, it will be for the 8th year running.

So far no claims, so I get 50% NCB.

Are there any better alternatives? Can anyone suggest what the sensible steps for achieving this are?

Any input would be appreciated.

Thanks
Hi Shankar, my yeti has completed 6 years recently and over the years I've used four insurers based purely on costing when the inclusions remained common across all insurance cos. The best I got was from ICICI Lombard but that was way back and I opted out because their renewal was higher than their previous policy. When I dug deeper, I was told that they normally charge more for their renewal which would reduce if I'd take a standalone policy. So, I went in for HDFC Ergo which was good enough and the premium was not bad either. It continued for another year as the premium reduced a bit and they give me the top of the line product. During the fifth year of renewal, I moved to Tata AIG as most of the insurers stopped offering Zero dep and engine protect. I' wanted these due to the car's character and having extra protection wouldn't be a bad thing also they offered me NCB protect. I've been happy with them and looks like they are happy with me as they have given me a zero-dep policy again for the sixth year which is quite a surprise as nobody in the market does so for the 6th year. But again, with your car it is seventh year so I really don't know how it would be. Specifically, Bajaj was the worst of all insurance cos in my case as they not only were higher but also were least accommodating.

Quote:
Originally Posted by ghodlur View Post
IDV is no way related to the condition of the car, purely depends on the depreciation due to ownership. Could not understand why would you want to keep the IDV same as last year, suggest to depreciate it by 10% than last year's IDV.

Does the BA quote of Rs 23K is inclusive of the Compulsory Personal Accident cover premium of Rs 750/- for a cover of Rs 15L? Did you check Coverfox, Digit, Acko for an alternate quote just for comparison purpose?

One add on cover which you could opt for is NCB protection which will not reduce your NCB to zero in case of any claims.
I don't think there would be an NCB protect available for a 8th-year car if so yes it definitely makes sense to have it. A point to remember here is that if you have a claim in the existing policy and want to move to a different insurer the next year then the NCB reduces automatically as your present insurer will not transfer the protect.

Quote:
Originally Posted by PrideRed View Post
Try Acko, heard they are cheapest . Not sure if the IDV is configurable with Acko. Every year your car depreciates and hence the IDV, now since you want same IDV as last year, your premium is higher. Unless you plan to put your car on total loss, higher IDV is not going to be of much help.
Hi Pride, did try them for my other car Amaze and found them to be more than what my agent who is also a friend quoted with HDFC Ergo, so I stuck with the same insurance and got it renewed. Also, my Amaze is turning 6 years and the same issue about zero-dep not available was getting flagged on all the websites whereas my existing insurer was giving me. Cheers
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Old 1st November 2018, 21:44   #4389
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@GHODLUR: IDV as per my experience, is configurable. I can choose to pay a higher premium for a higher IDV basis the condition of MY car.
BA Quote includes add on personal accident cover of 2 lacs for passengers. And general personal accident cover for the driver. I ll need to check the value of this.

NCB is no longer available across most insurers for a 7 year old car. But if I kick Bajaj a bit they will probably offer it to me albeit at a higher premium, because of my track record.


Quote:
Originally Posted by ghodlur View Post
IDV is no way related to the condition of the car, purely depends on the depreciation due to ownership. Could not understand why would you want to keep the IDV same as last year, suggest to depreciate it by 10% than last year's IDV.

Does the BA quote of Rs 23K is inclusive of the Compulsory Personal Accident cover premium of Rs 750/- for a cover of Rs 15L? Did you check Coverfox, Digit, Acko for an alternate quote just for comparison purpose?

One add on cover which you could opt for is NCB protection which will not reduce your NCB to zero in case of any claims.
Quote:
Originally Posted by PrideRed View Post
Try Acko, heard they are cheapest . Not sure if the IDV is configurable with Acko. Every year your car depreciates and hence the IDV, now since you want same IDV as last year, your premium is higher. Unless you plan to put your car on total loss, higher IDV is not going to be of much help.
@ PRIDERED: Acko has a configurable IDV upto a max of 7.7 lacs for MY car. I dont mind higher premium for higher IDV.

Quote:
Originally Posted by sumzup View Post
Hi Shankar, my yeti has completed 6 years recently and over the years I've used four insurers based purely on costing when the inclusions remained common across all insurance cos. The best I got was from ICICI Lombard but that was way back and I opted out because their renewal was higher than their previous policy. When I dug deeper, I was told that they normally charge more for their renewal which would reduce if I'd take a standalone policy. So, I went in for HDFC Ergo which was good enough and the premium was not bad either. It continued for another year as the premium reduced a bit and they give me the top of the line product. During the fifth year of renewal, I moved to Tata AIG as most of the insurers stopped offering Zero dep and engine protect. I' wanted these due to the car's character and having extra protection wouldn't be a bad thing also they offered me NCB protect. I've been happy with them and looks like they are happy with me as they have given me a zero-dep policy again for the sixth year which is quite a surprise as nobody in the market does so for the 6th year. But again, with your car it is seventh year so I really don't know how it would be. Specifically, Bajaj was the worst of all insurance cos in my case as they not only were higher but also were least accommodating.



I don't think there would be an NCB protect available for a 8th-year car if so yes it definitely makes sense to have it. A point to remember here is that if you have a claim in the existing policy and want to move to a different insurer the next year then the NCB reduces automatically as your present insurer will not transfer the protect.


@SUMZUP: There is the full 50% NCB on my car since I havenít claimed. My own previous experience with Tata AIG has always been good. But I was forced to change to the Bajaj guys when I bought the Yeti. Because of the dealer deal with them. I went along at the time because they matched the AIG deal. But now I ve been with Bajaj for 7 years and this is the 8th...let me think if I want to switch back to AIG...


Hi Pride, did try them for my other car Amaze and found them to be more than what my agent who is also a friend quoted with HDFC Ergo, so I stuck with the same insurance and got it renewed. Also, my Amaze is turning 6 years and the same issue about zero-dep not available was getting flagged on all the websites whereas my existing insurer was giving me. Cheers
@ SUMZUP: Zero Dep was stopped in my Yetiís 7th year renewal. I had it until the 6th. They did offer it for the 7th but the overall premium was almost 35K. So I opted out. Iím sure if I push Bajaj they ll offer Zero Dep for this year too but the premium will be very high. Thatís why Iím opting out of Zero Dep in general.
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Old 2nd November 2018, 18:24   #4390
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Default Re: Automobile Insurance Queries? Ask me

Dear all,

Going to renew the insurance of my car which is entering in 2nd year of it's life.

Zero dep policy by default, additionally they have also quoted INR 1300 for "Engine protect" and "Return to invoice" options.

Wanted to know if it makes sense to go for these additional options when opted for zero dep policy and car has a total of 5 years of warranty.

What is the difference between Zero dep and Return to invoice?

Is it the IDV against the invoice amount?

Last edited by MunnabhaiMBBS : 2nd November 2018 at 18:37.
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Old 2nd November 2018, 19:09   #4391
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What is the difference between Zero dep and Return to invoice?

Is it the IDV against the invoice amount?
Engine protect makes sense if there are chances that your vehicle wades through flooded areas either during monsoon or other wise where water ingress can damage the engine during your normal route of travel. Otherwise you can skip it.

Return to Invoice is helpful only when the car is totalled. This means that the Insurance co is liable to pay you the amount equal that of the vehicle invoice during purchase. During such times the IDV is superceded by the Return to Invoice

Zero depreciation is add on cover where the Insurance co bears the expenses of repair excluding the consumables and the compulsory deductible. Some Insurance cos offer unlimited claim repairs while most of the Insurance co offer it for 2 claims per policy year. Anything claim repair expenses beyond 2 will have to be borne by the vehicle owner.
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Old 11th November 2018, 13:29   #4392
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Default Liability on a zero dep bumper to bumper insurance

Hi folks
Recently I had the misfortune of being an accident victim. Thankfully all is well no injuries to anyone. The car had serious frontal damage.
There is Zero depreciation insurance with bumper to bumper coverage so still do i have to pay any amount other than a policy excess fee of 1500 INR.kindly help understand. I will share the accident details later and the story too. Thanks
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Old 12th November 2018, 07:55   #4393
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Originally Posted by Dieseldunk View Post
Hi folks
Recently I had the misfortune of being an accident victim. Thankfully all is well no injuries to anyone. The car had serious frontal damage.
There is Zero depreciation insurance with bumper to bumper coverage so still do i have to pay any amount other than a policy excess fee of 1500 INR.kindly help understand. I will share the accident details later and the story too. Thanks
In additional to compulsory deduction, you will also have to pay for the consumables unless you have an add on for the consumables too.
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Old 12th November 2018, 08:29   #4394
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Thanks Ghodlur. Let me choose that too.
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Old 12th November 2018, 16:57   #4395
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Hi Everyone,

My Nov-2013 car's insurance is due for renewal at the end of this month, at which time it will be 5 years old. I'm currently with Bajaj Allianz and I have the 0-depreciation and engine protect add-on as well.

I know that 0-depreciation is usually not allowed for cars beyond 5 years, but when I go on the Bajaj Allianz website to renew - they're giving me the option to take the 0-depreciation package.

So, my question is that if (God forbid) the time comes - will Bajaj Allianz honour it since I have paid for it (and presuming that I have met all their other required criteria at the time of the claim)?

I also went through the detailed T&Cs, and there wasn't any mention of age of car under the exclusions for 0-depreciation.

Some websites say that the 5-yr age limit is more like a guideline than a norm and insurers may provide it depending on the owner's history.

Anybody have any history with this? Insurance gurus, what is your take?

PS: I'm reluctant to call the company as I'm sure they'll probably just say yes to everything now, and then just mess up my life later.

Last edited by sidpunjabi : 12th November 2018 at 16:59.
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