[NiInJa]

Hi All, Need some clarifications on insurance.

My car's insurance renewal is due. The IDV during last year was set to 6,60,000/- for my Ertiga Zxi+.

I came to know that the car has high demand and I can find buyers who are ready to buy my car (2019 March) for up to 8,25,000 INR.

So, I thought of increasing my IDV to 7,50,000 during this renewal, but Tata AIG sales person said that in case of total loss they will still consider IDV of previous year minus 10% , that comes to around 5,94,000. This got me confused and I asked her what is the whole point of increasing IDV then, to which she said it only helps in getting better resale value, which I found absurd.

The clarification I want is:

1. Acko is giving me IDV of 8,50,000. So if the car suffers total loss, will Acko give me this insured amount or something else? (Will they refer to previous year's IDV?)
2. If increasing IDV -as per TATA AIG sales person- is of no use since company still pays out previous IDV, then what is the use of having that option ?
3. I feel stupid that I agreed for less IDV in the previous year renewal, should I go ahead and increase it now to a fair value (considering demand for the car) ?
[Note: No claims have been taken so far]

[Aviator_guy]

Originally Posted by NiInJa

Hi All, Need some clarifications on insurance.

My car's insurance renewal is due. The IDV during last year was set to 6,60,000/- for my Ertiga Zxi+.

I came to know that the car has high demand and I can find buyers who are ready to buy my car (2019 March) for up to 8,25,000 INR.

So, I thought of increasing my IDV to 7,50,000 during this renewal, but Tata AIG sales person said that in case of total loss they will still consider IDV of previous year minus 10% , that comes to around 5,94,000. This got me confused and I asked her what is the whole point of increasing IDV then, to which she said it only helps in getting better resale value, which I found absurd.

The clarification I want is:

1. Acko is giving me IDV of 8,50,000. So if the car suffers total loss, will Acko give me this insured amount or something else? (Will they refer to previous year's IDV?)
2. If increasing IDV -as per TATA AIG sales person- is of no use since company still pays out previous IDV, then what is the use of having that option ?
3. I feel stupid that I agreed for less IDV in the previous year renewal, should I go ahead and increase it now to a fair value (considering demand for the car) ?
[Note: No claims have been taken so far]

I don't think that there is any relation of insurance IDV to the resale value. I have sold off couple of cars in the past (and also bought one) and IDV never came to the discussion. As long as you have valid comprehensive insurance, it works fine. I think you are over thinking this.

Of course, if your worry is about total loss claim then it is a grey area and other experts in the group may throw some light.

[Ojas]

Hello,

I had accumulated 50% NCB on my previous car and I got an NCB transfer letter when I sold it last year. Now I'm trying to get it applied on my new car, but it happens to be on company lease. The RC has company name AND my name as well, although the RTA website shows only the company name under "Owner Name". The insurance company is refusing NCB transfer quoting that the owner names do not match, although I'm the rightful owner in both cases. Any suggestions on if and how I can get the NCB transferred?

Thanks!

[Joelinf]

Dear knowledgable members: Is personal accident cover is only for owner driver? If there are no vehicles in my name, how can I be covered? Also, if the vehicle is in the name of an organization, can I skip PA cover in insurance? Kindly advise.

[Blue_matador]

Hello, I have a question regarding two wheeler insurance.
Iffco Tokio mentions in their policy about salvage charges even in case of repair or total loss. The salvage cost of the metal "wreck" is something to be borne by the dealer or the insurer right?
Under no circumstances the salvage cost would/ should not be deducted from the insured's claim, is this fair understanding?

For Example
Lets say handle of the bike breaks down and the replacement costs 50K.
The original (and now damaged) handle is worth 5K as salvage.
Lets say the insurer agrees for the claim amount of 50K, I would get that 50K as claim right and not 45K (50K - 5K salvage amount)?
(Assuming Zero Dep/ No Processing Fee/ Consumables add on)

[v12]

Hello Guys, I am trying to get the insurance done for my 1984 Suzuki AX100. I tried to do it from various insurance portals (Acko, Digit etc) and also directly through the insurance company portals - but all of them do not have an option to select a year beyond 2003. They are also not able to recognize the old registration number - MAJ ****. How can one go about getting an insurance online?

I tried speaking to an agent and they said for old bikes , it is not possible to take insurance online. But they are able to do it - and it will take at least 10 days to get it done.

Can someone help to clarify the process?

[Blue_matador]

Originally Posted by Blue_matador

Hello, I have a question regarding two wheeler insurance.
Iffco Tokio mentions in their policy about salvage charges even in case of repair or total loss. The salvage cost of the metal "wreck" is something to be borne by the dealer or the insurer right?
Under no circumstances the salvage cost would/ should not be deducted from the insured's claim, is this fair understanding?

For Example
Lets say handle of the bike breaks down and the replacement costs 50K.
The original (and now damaged) handle is worth 5K as salvage.
Lets say the insurer agrees for the claim amount of 50K, I would get that 50K as claim right and not 45K (50K - 5K salvage amount)?
(Assuming Zero Dep/ No Processing Fee/ Consumables add on)

I checked with a relative who works for and insurance firm, apparently the insurance companies to minimize the overhead of storage of the salvaged wreck and auction are now punting of dealing with the wreck on the insured.
So the example I took the net claim would be 45K (It is usually a small amount though).
But the insured can contest this and say that he does not want to take the wreck and does not want to deal with it and the insurer in that case has to take the onus of auctioning the items and the claim in that case would be 50K.
Everything is so convoluted!

[mukeshgoel]

Hi.

My car's insurance is due for renewal. Existing policy with Tata-AIG ends on 31st March, 2023.

Since last 8-10 days, I have been trying to renew it online (like I do every year and like I did for my other car insured with Tata-AIG in Feb'23). But if I enter my car number, it says "We are unable to identify the registration number entered by you" and asks for policy number.

When I enter my policy number, it says "Your policy is not due for renewal".

It was available for renewal on 8th March (saved screenshots to note IDV, premium and inclusions) when I checked it but I decided to renew it later.

I contacted Tata-AIG customer care on 25th March but their systems were down. I again contacted them yesterday and they created a SR (Service Request).

Today, I got a call from Tata-AIG in response to the SR. He said that the broker (Aditya Birla Insurance Brokers Ltd) has disabled renewal. I have never taken a claim from Tata-AIG in both my cars, not sure what's wrong with them.

Previous year NCB was 35%, this year it is going to be 45%.

Tata-AIG says they are not able to do anything. Either visit their branch (some 15-20 kms) or buy any other insurance. Any suggestions guys?

[Transmission]

New car purchase - Nissan Magnite. Dealer insurance from MS Chola.

Question:
Once I have been issued a policy (not a quote, but the actual policy) can I ADD addon-ons to it?

The insurance guy is quite useless and I have had some strange trouble calling up MS Chola's customer care numbers, hence asking here if anyone has done something like this before - even if on other providers...

[Joelinf]

Dear members: recently I heard some insurance agents (private ones like Royal Sundaran, Go digit, etc. and not the govt. ones like United India) claiming that there are discounts to the tune of 10k for school vehicles as school buses are relatively risk-free for the insurance providers, as they are driven carefully and they ply for 4 hours max. Is this true or there is a catch somewhere?

[mayjay]

Hello all,

I wanted to share my experience of purchasing insurance at the time of car purchase from the dealer and take the fellow members’ opinion on whether there is anything amiss in what happened.

I purchased my car last year for a sum of around 60 lakhs (rounded). This was after a discount of around 10 lakhs (this included some cash component and service package, etc.). The ex showroom of the car was 59 lakhs. At the time I was not very alert to it, but the invoice value was given at 49 lakhs (59-10 discount). The insurance IDV was set using this invoice value : (49 lakh - 5% = 46.5 lakh)

I only saw the details when I looked into this year’s renewal notice and why the IDV was coming to only 42 lakhs for a 60 lakh car which is only 1 year old. On questioning the dealer, the SA said that this is standard practice and the insurance premium has to be linked to the invoice value and so everything is above board (it feels like I was made to pay a high premium for a low IDV and this will put me at a disadvantage if I ever have to claim total damages).

I want to put this to the members - is the dealer right in his assessment?

I don’t expect that anything can be done now, but it would be good to know and maybe serve as a reference point for the community.

[Aviator_guy]

Originally Posted by mayjay

Hello all,
The ex showroom of the car was 59 lakhs. At the time I was not very alert to it, but the invoice value was given at 49 lakhs (59-10 discount). The insurance IDV was set using this invoice value : (49 lakh - 5% = 46.5 lakh)

I only saw the details when I looked into this year’s renewal notice and why the IDV was coming to only 42 lakhs for a 60 lakh car which is only 1 year old. On questioning the dealer, the SA said that this is standard practice and the insurance premium has to be linked to the invoice value and so everything is above board (it feels like I was made to pay a high premium for a low IDV and this will put me at a disadvantage if I ever have to claim total damages).
i
.

What makes you think that you were made to pay higher premium for low IDV? The premium would have been commensurate with the invoice price, isn't it? At least this is what dealer is claiming. Do you know if dealer is offering insurance at same price for both cases where car is sold with and without discount? Then what you say makes sense but even then I don't think anything could be done about it once the deal is done. But thanks for sharing so that it could be a reference for us.

[lamborghini]

Originally Posted by mayjay

Hello all,

I only saw the details when I looked into this year’s renewal notice and why the IDV was coming to only 42 lakhs for a 60 lakh car which is only 1 year old. On questioning the dealer, the SA said that this is standard practice and the insurance premium has to be linked to the invoice value and so everything is above board (it feels like I was made to pay a high premium for a low IDV and this will put me at a disadvantage if I ever have to claim total damages).

I want to put this to the members - is the dealer right in his assessment?

I don’t expect that anything can be done now, but it would be good to know and maybe serve as a reference point for the community.

Unless you bought return to invoice as an add on, this seems fair.
In the case of return to invoice, the value including RTO taxes will be reimbursed to you or a new car would be provided of exact specification.

If you've bought regular insurance without RTI, then the policy will be based on the invoice value less RTO taxes and discounts. They will pay you less than what you paid for the car in keeping with depreciation norms, and for the 10L of tax you would have paid - you are free to approach the RTO for a refund if your RTO has such a policy (thus taking it to be 42L + 10L = 52L for a 59L OTR car).

But to expect the insurance to pay you 50-52L for a car you purchased at 49L + tax wouldn't be fair because then people would buy and total cars for profit.

[mayjay]

Originally Posted by lamborghini

Unless you bought return to invoice as an add on, this seems fair.
In the case of return to invoice, the value including RTO taxes will be reimbursed to you or a new car would be provided of exact specification.

If you've bought regular insurance without RTI, then the policy will be based on the invoice value less RTO taxes and discounts. They will pay you less than what you paid for the car in keeping with depreciation norms, and for the 10L of tax you would have paid - you are free to approach the RTO for a refund if your RTO has such a policy (thus taking it to be 42L + 10L = 52L for a 59L OTR car).

But to expect the insurance to pay you 50-52L for a car you purchased at 49L + tax wouldn't be fair because then people would buy and total cars for profit.

Thanks, this is definitely a useful perspective. I’m just wondering if it was fair that discount provided against things like Service package, logistics charges, to name a couple (which are not part of the ex-showroom cost) have been set off against the invoice value of the car. Maybe only the cash discount should have been reduced. Rest I would ideally look at as incentives to making the purchase.

[lamborghini]

Originally Posted by mayjay

Thanks, this is definitely a useful perspective. I’m just wondering if it was fair that discount provided against things like Service package, logistics charges, to name a couple (which are not part of the ex-showroom cost) have been set off against the invoice value of the car. Maybe only the cash discount should have been reduced. Rest I would ideally look at as incentives to making the purchase.

Ideally yes, those were packages that would have anyways been over and above the ex-showroom value of the car; but this is a common norm with most dealerships as the Insurance is another angle where they try to make a fair amount of commission.
For this reason, we prefer to get our insurance done from outside on our own through a trusted broker - it can also be done online, but the broker is able to save time on comparisons, also guide us on various options, and in case a claim has to be filed - the broker again comes to the rescue to put added pressure.