[Raccoon]

^^^ What is the basis for saying he can't get comprehensive if he discontinues the current policy? Also, why would it be difficult to change the insurer??

Besides nationalized companies, pvt. players like IFFCO and Bajaj are ready comprehensively insure bikes over a decade old and for which the previous policy long expired. I don't see why they will refuse it for a car. Some do refuse, but there are many players in the field now. Just check with others.

[~~h]

Originally Posted by parikshat

Further said that there is no other insurance company who offers the same

No that's not true, I have been offered the same by ICICI Lombard for renewal of my 2 year old Getz prime gvs.

The regular premium was coming up to 5700 or so and 0% depreciation was quoted at 8300.

[bblost]

My wagon R insurance was renewed today at the same IDV as last year.
The agent at the maruti insurance office was quite clear that depreciation need not be considered.
The 2004 Wagon R was insured at 205000 in 2008.
This year again its insured at the same amount.

Because of my 10% etc NCB this year the premium is a little lesser than what i paid last year.

I actually insisted that if they have no issues I prefer the higher IDV.

Was my above action correct.
Should I have accounted for the depreciation and reduced the IDV to 185000.

Also took a 1 Lakh PA cover for 4 passengers at an extra 200.

Now I have PA cover from my company insurance. In the event of an accident, who will pay.
Does it mean that both will share the expenses and hence give me a bigger cover.

[bj96]

Originally Posted by bblost

I actually insisted that if they have no issues I prefer the higher IDV.
Was my above action correct.

Absolutely. You made insurance company and its agent, both, richer. Without your noble gesture how can this industry prosper

Insurance company will repay (against any damage claim other than 3rd party) you either of the following (1) IDV amount or (2) Current market value of the car- whichever is lesser.

i.e. mathematically put:

damage claim = min of (IDV, Mkt Value);

Basis this, having IDV more than the market value is worthless. At the time of claim they will have evaluators/depreciation formula which will assess the value of the car. Even if you have a higher IDV you will not get a penny more unless of-course you hire either Mr. Ram Jethmalani and/or Mr. Harish Salve to argue for you.

-BJ

[~~h]

Originally Posted by bj96

Insurance company will repay (against any damage claim other than 3rd party) you either of the following (1) IDV amount or (2) Current market value of the car- whichever is lesser.

i.e. mathematically put:

damage claim = min of (IDV, Mkt Value);

If that's the case, why do people end up paying high IDV? Is it ignorance + Agent brainwashing.

I’ve seen quite a few people increasing their IDV and paying higher premium.


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[bj96]

Originally Posted by ~~h

If that's the case, why do people end up paying high IDV?

Some valid (and justifiable) grounds for increasing the IDV, could be as below:

1) Classic/unique piece- not in production, but, high antique value

2) Fitted extra (RTO legal) accessories like high end ICE, LPG kit, custom parts etc. Such changes should be supported with documentary evidence and need to be endorsed in insurance (and possibly RC) too.

3) Custom/modded vehicles- need to be endorsed

4) Old/obsolete models
etc.

For most run of the mill and still in production models, inflating the IDV is useless as Insurer could potentially buy from market at a lesser price and restore to the claimant at a lesser cost than claimed by the insurer via inflated IDV.

-BJ

[rjvora_2000]

Originally Posted by nag20in

Hi,
Even some of my friends said the same, but waht i am learning here is we can bargain from the deler on the insurance amount, so my plan is to take quote from the bajaj directly and bargain with the delear and reduce the price... suggestions from seniors are more than welcome..
thanks in advance

You are doing the right thing.

Originally Posted by rajswiftvdi

Hi Nag, I also had the same confusion when I booked my car at Maruti. Bank was offering quite lesser amount than the Dealer was asking for. But I got the information from various sources that, its always good to go with Dealer, since there will be some benefits such as cash less claim and prompt looking into the matter. Otherwise someone has to come from insurance firm and evaluate the vehicle seems.

Also the way external firm calculate the insurance amount varies, and depends upon that valuation the benfit we get upon claim also differs - this is what Dealer told me, not sure how much truth in it.

There is no such rule that you have to take the insurance from dealer only. I have not seen a single dealer who knows the detailed calculation for motor insurance. Normally they fool the client who may not know much about motor insurance.

Originally Posted by sdp1975

Guys, need some advice here. Booked a punto in B'lore from concorde motors in dairy circle and the 1st yr insurance is coming free with it.

My options are Royal Sundaram, icici lombard and national insurance. Which one is preferable ? I'm looking at ease of claim settlement and hassle free service.

Don't go for Icici.

Originally Posted by bblost

My wagon R insurance was renewed today at the same IDV as last year.
The agent at the maruti insurance office was quite clear that depreciation need not be considered.
The 2004 Wagon R was insured at 205000 in 2008.
This year again its insured at the same amount.

Because of my 10% etc NCB this year the premium is a little lesser than what i paid last year.

I actually insisted that if they have no issues I prefer the higher IDV.

Was my above action correct.
Should I have accounted for the depreciation and reduced the IDV to 185000.

Also took a 1 Lakh PA cover for 4 passengers at an extra 200.

Now I have PA cover from my company insurance. In the event of an accident, who will pay.
Does it mean that both will share the expenses and hence give me a bigger cover.

Agent or Maruti officer fooled you and nothing else. Higher IDV dose not mean that you increase the car's value without any change in vehicle. If there is no change in the car and car is in normal condition then you have to reduce the car's value by 10% to 20%.

If there is a claim tomorrow, insurance company will pay you less only and not your full IDV.

Originally Posted by ~~h

If that's the case, why do people end up paying high IDV? Is it ignorance + Agent brainwashing.

I’ve seen quite a few people increasing their IDV and paying higher premium.

If you have a proper reason then only Idv should be increased otherwise you should not increase the car's value.

Originally Posted by bj96

Some valid (and justifiable) grounds for increasing the IDV, could be as below:

1) Classic/unique piece- not in production, but, high antique value

2) Fitted extra (RTO legal) accessories like high end ICE, LPG kit, custom parts etc. Such changes should be supported with documentary evidence and need to be endorsed in insurance (and possibly RC) too.

3) Custom/modded vehicles- need to be endorsed

4) Old/obsolete models
etc.

For most run of the mill and still in production models, inflating the IDV is useless as Insurer could potentially buy from market at a lesser price and restore to the claimant at a lesser cost than claimed by the insurer via inflated IDV.

-BJ

you are 100% right...

[bblost]

Carwale price for my car under Individual Good condition is 208000.
So the IDV I chose is correct.

And I found this court ruling

Insurance companies should pay the insured value of vehicles in case of theft and not the prevailing market value, a district consumer forum has ruled.

COMMON CAUSE :: Journal

I remembered this point. Thats why googled it back up.
So in a way higher IDV is not such a bad thing.
Considering that it was I who insisted on it.

The agent was more than willing to recalculate the same.
So the point is no one can fool me.
In this case I did that myself

[bj96]

Originally Posted by bblost

Carwale price for my car under Individual Good condition is 208000.
So the IDV I chose is correct.

Since, market value of your car is as much, IDV is probably OK. However, I am not sure, how one can justify the "good" condition of car in court of law should the opposite party (here insurer) contest that?

Originally Posted by bblost

And I found this court ruling
COMMON CAUSE :: Journal

This particular case involved a 18yr old car- it is probably old/obsolete model and manufacturer's price list may not have been available. Hence, the court ruled in favor of consumer. But, if the model is recent and still in production, the story could have been different.

Remember we can not generalize this ruling because it could lead to a lot of unknown/illegal issues- e.g. it could lead to a racket where owners will insure for a higher IDV and willingly loose cars and then claim higher compensation. E.g. I could theoretically orchestrate theft of my Safari and buy a Prado from the compensation . Such things, could lead to proliferation of a whole new kala dhanda in car insurance.

-BJ

[nag20in]

Hi Friends,
i just called Bajaj Alianz today to get a quote for my new ford fiesta,
the Exshowroom price is 6,43,000 and the premium is 17,630.

But interestingly the agent told me one more plan called "Drive Assurance"
the features are
1) Engine Protector ( it wil cover all the engine internal damage)
2) Depriciation shield ( by this al the parts of the vehicle wil not covered 100%, Like no depriciation on plastic part)
3) 24/7 Assistance (he told me lot features)
for the Price of Rs 23,000(5,000 extra than the normal premium)

So, if any one has got more details or suggestions plese reply ASAP asi need to take the insurance tomorow....
thanks in advance....

[Raccoon]

Originally Posted by bj96

This particular case involved a 18yr old car- it is probably old/obsolete model and manufacturer's price list may not have been available. Hence, the court ruled in favor of consumer. But, if the model is recent and still in production, the story could have been different.

Remember we can not generalize this ruling because it could lead to a lot of unknown/illegal issues- e.g. it could lead to a racket where owners will insure for a higher IDV and willingly loose cars and then claim higher compensation. E.g. I could theoretically orchestrate theft of my Safari and buy a Prado from the compensation . Such things, could lead to proliferation of a whole new kala dhanda in car insurance.

-BJ

What about cars that are not in production like the Esteem? Ours is over 6 years old, in great shape and stock. Would insuring with a higher IDV help in any way?

[rjvora_2000]

Originally Posted by Raccoon

What about cars that are not in production like the Esteem? Ours is over 6 years old, in great shape and stock. Would insuring with a higher IDV help in any way?

No sirji I don't think so. If there is a total loss claim tomorrow insurance company will not pay higher value.

If you are still keeping the higher value I will advice you to go for valuer's report along with the insurance. Only that can help you in case of claim.

[~~h]

@BJ thanks for the clarification or increasing the IDV stuff..

@rjvora_2000 : Just curious ,why is everyone is apprehensive of icici ? Even my own adviser asked to change to new India

[Raccoon]

Originally Posted by rjvora_2000

No sirji I don't think so. If there is a total loss claim tomorrow insurance company will not pay higher value.

If you are still keeping the higher value I will advice you to go for valuer's report along with the insurance. Only that can help you in case of claim.

How does go about to get a valuer's report?

Originally Posted by ~~h

@BJ thanks for the clarification or increasing the IDV stuff..

@rjvora_2000 : Just curious ,why is everyone is apprehensive of icici ? Even my own adviser asked to change to new India

He has already mentioned this a few posts earlier. Please search this thread.

[sdp1975]

Originally Posted by bblost

So in a way higher IDV is not such a bad thing.
Considering that it was I who insisted on it.

I know a friend , and a bhp-ian , who renewed his first yr insurance for his car at a pretty high IDV. His concerns were vehicle lying outside and possible theft.

Nothing wrong in having a high IDV if that's the way you want it - after all you *are* paying a higher premium for a higher IDV

Originally Posted by nag20in

Hi Friends,
i just called Bajaj Alianz today to get a quote for my new ford fiesta,
the Exshowroom price is 6,43,000 and the premium is 17,630.

But interestingly the agent told me one more plan called "Drive Assurance"
the features are
1) Engine Protector ( it wil cover all the engine internal damage)
2) Depriciation shield ( by this al the parts of the vehicle wil not covered 100%, Like no depriciation on plastic part)
3) 24/7 Assistance (he told me lot features)
for the Price of Rs 23,000(5,000 extra than the normal premium)

So, if any one has got more details or suggestions plese reply ASAP asi need to take the insurance tomorow....
thanks in advance....

Engine warranty should take care of your engine. Is this a 24/7 roadside assistance programme? You'll get plenty of those outside at around Rs400/- a year. It's your call if you want to go for the 0% depreciation on plastics by shelling 5K extra - I don't think it's worth it. I think you negotiate can further on the premium.

Originally Posted by bj96

Since, market value of your car is as much, IDV is probably OK. However, I am not sure, how one can justify the "good" condition of car in court of law should the opposite party (here insurer) contest that?

Does it matter in cases of total claim what the car condition is ? After all the IDV was agreed upon between the insured and the insurer - why did the insurer agree to the high IDV initially if it's market value is lower than IDV ? I'm sure that in case of a dispute the consumer courts will direct the insurer to shell out the IDV. There may be possible guidelines from the IRDA as well. Checking out the fine print on the insurance note should also help.