[Thad E Ginathom]

Originally Posted by Aviator_guy

3rd party insurance is a joke in India. ... ... ... I wish laws and processes become smoother and easier for folks to claim third party insurance from the other person at fault and not having to go thru double whammy of damaged vehicle and NCB loss for no fault of theirs.

Unless Indian insurers have turned the business on its head, that is the wrong way round.

Third-party insurance protects you from claims made by others for your damage to their property. That is why it is mandatory.

Own damage, or comprehensive, insurance is for fixing your own car. That is not mandatory.

[self_driven]

Third-party insurance, as the name suggests, takes care of claims made by a third party against you for damages to their life/property. If you are at receiving end, you file FIR and raise a claim with the other party's insurance company. Matter goes to court and claim is paid by the other party's insurance company if the judgement comes in your favour. Similarly, your third party insurance can be used by others. Involves going through the corrupt system, so people avoid using it unless they absolutely need to. Most of the cases where damage is limited to property are solved out-of-court, where the more influential party either takes compensation or walks away freely, irrespective of who is at fault.

[Aviator_guy]

Originally Posted by Thad E Ginathom

Unless Indian insurers have turned the business on its head, that is the wrong way round.

Third-party insurance protects you from claims made by others for your damage to their property. That is why it is mandatory.

Own damage, or comprehensive, insurance is for fixing your own car. That is not mandatory.

It works both ways. If you hit someone, your third party insurance should cover other party damages. Similarly, if someone hits you then his third party insurance should take care and you don't need to claim OD. That's why it is mandatory as it covers both scenarios.

Own damage cover should be only for the purpose it is designed for : damage to own car due to own fault.

[Thad E Ginathom]

Originally Posted by Aviator_guy

It works both ways. If you hit someone, your third party insurance should cover other party damages. Similarly, if someone hits you then his third party insurance should take care and you don't need to claim OD. That's why it is mandatory as it covers both scenarios

No, that's the same way in both instances. Think of the third party as "victim." Whether it is you or the other guy, it a claim made by the victim, and the claimee's third-party insurance paying for it.

I think this is the way my dad explained it to me decades ago...

First party: insured
Second party: Insurer
Third party: victim making claim against insured.

It is mandatory so that victims are not left with no recourse other than to sue an individual who may be penniless. It is to protect the injured, not the policy holder.

Own damage just means damage to own property, whether caused by self or others. If caused by others the insurer then has the option to claim from the other guy, or, more usually, his insurer. In my mother country it is called comprehensive insurance.

Aside:

Friends and I used to charter yachts for holidays in England. Like car hire, insurance is a part of the deal. And with the boat being worth a crore or more it would be stupid not to take it. I noticed that the limits on third party liability were huge, like tens of millions of GBP (1980s). I mentioned this to the charter company, who explained it, "Imagine... you do something that causes a big ship to go aground..." Point taken!

[Rajesh V]

Originally Posted by Thad E Ginathom

No, that's the same way in both instances. Think of the third party as "victim." Whether it is you or the other guy, it a claim made by the victim, and the claimee's third-party insurance paying for it.

I think this is the way my dad explained it to me decades ago...

First party: insured
Second party: Insurer
Third party: victim making claim against insured.

It is mandatory so that victims are not left with no recourse other than to sue an individual who may be penniless. It is to protect the injured, not the policy holder.

Own damage just means damage to own property, whether caused by self or others. If caused by others the insurer then has the option to claim from the other guy, or, more usually, his insurer. In my mother country it is called comprehensive insurance.

Aside:

Friends and I used to charter yachts for holidays in England. Like car hire, insurance is a part of the deal. And with the boat being worth a crore or more it would be stupid not to take it. I noticed that the limits on third party liability were huge, like tens of millions of GBP (1980s). I mentioned this to the charter company, who explained it, "Imagine... you do something that causes a big ship to go aground..." Point taken!

I think there's some misunderstanding.

You're the victim if somebody crashes into you, so you're supposed to be able to make a third party claim against them on their insurer.

Nobody is suggesting that you make a third party claim on your insurer for yourself because a "third party" was involved. The third party is from the perspective of the contract, not incident.

[Thad E Ginathom]

Originally Posted by Rajesh V

Nobody is suggesting that you make a third party claim on your insurer for yourself because a "third party" was involved.

I didn't say anything like that, or anything that was meant to be interpreted that way

The third party is from the perspective of the contract, not incident.

Yes! You have put it perfectly. Thank you.

[Rajesh V]

Originally Posted by Thad E Ginathom

I didn't say anything like that, or anything that was meant to be interpreted that way

Yeah, I was saying nobody said that, including you. It just felt like you were interpreting Aviator_guy's replies like so because both you and Aviator_guy were actually saying the same thing.

claim third party insurance from the other person

if someone hits you then his third party insurance should take care

[dass]

Question on the compulsory PA cover.

If I own multiple vehicles in my name, taking one PA cover in one of the insurance policies should be sufficient, correct? I do not need to take PA cover for all of vehicles at the same time.

What if I own the vehicle, someone else (spouse) rides the vehicle? Should we be taking PA cover for spouse as well, or since the registered owner has one, will it cover all drivers of that particular vehicle?

[Aviator_guy]

Originally Posted by dass

Question on the compulsory PA cover.

If I own multiple vehicles in my name, taking one PA cover in one of the insurance policies should be sufficient, correct? I do not need to take PA cover for all of vehicles at the same time.

One PA cover is sufficient, no need for multiple covers for same person.

Originally Posted by dass

What if I own the vehicle, someone else (spouse) rides one the vehicle? Should we be taking PA cover for spose as well, or since the registered owner has one, it will cover all drivers of that particular vehicle?

PA cover is for individual person and your wife needs to have separate PA cover. In the insurance options, I have seen option to add paid driver/passengers for accident cover but not sure or don't remember about adding another driver. You can check with the insurance company to add your wife to PA cover as an additional driver.

[ShreyG]

Hello guys

I had a small query regarding renewal for my 3 year old car. I am obviously getting blasted with calls from across vendors with varying quotes. However, quite a few of them are providing a highly inflated IDV (>10 lakhs for 2021 Nissan kicks Turbo). However, a few (reputable ones as well) a offering a substantially lower IDV (~8 lakhs) with an RTI cover. Both offer the standard zero dep, RSA etc cover. However, the quotes differential is ~25% higher for the ones with higher IDV. My logic says to opt for lower IDV and RTI cover since it is priced lower.
Any thoughts, feedback and views will be greatly appreciated.

[Aviator_guy]

Originally Posted by ShreyG

Hello guys

I had a small query regarding renewal for my 3 year old car. I am obviously getting blasted with calls from across vendors with varying quotes. However, quite a few of them are providing a highly inflated IDV (>10 lakhs for 2021 Nissan kicks Turbo). However, a few (reputable ones as well) a offering a substantially lower IDV (~8 lakhs) with an RTI cover. Both offer the standard zero dep, RSA etc cover. However, the quotes differential is ~25% higher for the ones with higher IDV. My logic says to opt for lower IDV and RTI cover since it is priced lower.
Any thoughts, feedback and views will be greatly appreciated.

Chose IDV commensurate with the car's age and yearly depreciation (not too low, not too high). There is no use of inflated IDV as any claim settlement would still happen at normal IDV as per insurance company calculations.

Unsolicited advice : Please select insurance company which has wide network coverage, good claim settlement and service levels.

[rascalangel]

I have to renew my 1 year old interceptor insurance. I'm confused as to what options to take? Own damage is the least I suppose? I always assumed Third party is mandatory and the least one could buy. But companies like ICICI Lombard are quoting for just OD and there isn't any option to add TP. Should I also opt for ZD and RTI? I am assuming a depreciated value of 2.8 Lacs on 3.21 lacs Ex. Show. when i bought new.

[Aviator_guy]

Originally Posted by rascalangel

I have to renew my 1 year old interceptor insurance. I'm confused as to what options to take? Own damage is the least I suppose? I always assumed Third party is mandatory and the least one could buy. But companies like ICICI Lombard are quoting for just OD and there isn't any option to add TP. Should I also opt for ZD and RTI? I am assuming a depreciated value of 2.8 Lacs on 3.21 lacs Ex. Show. when i bought new.

For new 2w, third party cover is valid for 5 years. Please check your policy. You only need to renew OD cover if you want it. While buying OD cover, mention the existing TP cover so that insurance company can endorse it in new policy documents.

Add-ons depends on your preference and situation. Personally I haven't claimed any insurance for 2w in past 10-15 years of ownership of various bikes and scooters. So I don't bother with add-ons. However for car, I always prefer zero dep, engine protect and RTI. If you want to keep some add-on since your bike is still new then I'd say zero dep and RTI could be good options.

[PGA]

I recently purchased Grand Vitara Hybrid and my insurance worked out to Rs 31,410/- with 50% NCB added into it. A photo of the policy document is below. Since I was only looking at the overall budget I did not check the finer details.

Additional amount has been charged for

Depreciation Protect
Engine and Gear Box protect
Return to Invoice
Key Loss Cover
Consumable Cover
Private Car EV Shield

While I do understand that some of the above is optional/on as required basis, is it necessary to have an EV shield and Engine and Gear Box Protect? Shouldn't that be part of the overall policy cover. IDV of the car is little over Rs 17.50/-Lakh