Automobile Insurance Queries? Ask me

[cyclops]

Originally Posted by rjvora_2000

Increase the IDV and go for 0% dep. car insurance, It look's good to me.

Thanks for the advise.

But how is the o% dep. scheme. Does it really works? Has anyone had a first hand experience on this?

[rjvora_2000]

Originally Posted by cyclops

Thanks for the advise.

But how is the o% dep. scheme. Does it really works? Has anyone had a first hand experience on this?

I have seen the policy wording but I have not meet anyone who's claim have been paid under this policy.

[r_nairtvm]

Originally Posted by cyclops

Thanks for the advise.

But how is the o% dep. scheme. Does it really works? Has anyone had a first hand experience on this?

Cyclops,

The 0% Depreciation Policy may be new concept for India. But internationally it has been available for some time.

Usually for this the Insurance Comapny and the workshop would negotiate and arrive at an agreement to get your car repaired. Then they would give you a copy of work order which will detail what are replacements and repairs.

If you have any dispute about replacement or non replacement of any item, you can dispute it at this stage

You have the right to insepect car/vehicle at fairly reasonable intervals including before the painting process.

Once the repair is complete you inspect the car do trial run if needed, then if satisfied sign the Satisfation Note, pay the deductible/excess if any and drive out.

This I am talking from my experience in Gulf. Here for 1st year from new all vehicles would be eligible for "Agency Repair". Then it depends on your history and NCB etc. The agency repair here is extendable up to 6 years.

Again I am not familiar with what is happening in India at the moment.

Trus this would serve as a guide for you to querry the Insurance company. Ask them to give you a guide on this. Read the policy (ask for specimen) and read it up as well.

Thanks Best Regads & Ride/Drive safe

Ram

[rjvora_2000]

Dear Ram,

Thank you for sharing the International way of working in this types of insurance policies. In India also systems are similer to what you have said. Just would like to add one point that in case of total loss the entire value (Which is ex-showroom cost) is paid to the insured.

[kalyan_hyd]

Hi Sir,
I booked a Honda City and am planning to get insurance on it by myself as the dealer is quoting a pretty high premium. The ex-showroom price of the car is Rs 8,99,000.00. I am getting a discount of Rs 19,000.00 on the ex-showroom price.

I have some doubts regarding calculation of the IDV of the vehicle for insurance, should it be:
a. Rs 8,99,000.00 (ex-showroom price)
b. Rs 8,80,000.00 (ex-showroom - discount offered)
c. Rs 8,54,000.00 (calculated as 95% of ex-showroom price)

Also, if I declare the IDV value of my car as Rs 7,00,000.00. I understand that on a total loss of the car, the amount the insurance company will pay me is Rs 7,00,000.00. I wanted to know if in this case, on a partial loss which say costs Rs 50,000.00 for the repair work, will the insurance company reduce the amount payable to me by the same percentage that I reduced the IDV of the car from the ex-showroom price of the car or will I get paid fully as the damage cost is still under the IDV I declared.

[rjvora_2000]

Originally Posted by kalyan_hyd

Hi Sir,
I booked a Honda City and am planning to get insurance on it by myself as the dealer is quoting a pretty high premium. The ex-showroom price of the car is Rs 8,99,000.00. I am getting a discount of Rs 19,000.00 on the ex-showroom price.

I have some doubts regarding calculation of the IDV of the vehicle for insurance, should it be:
a. Rs 8,99,000.00 (ex-showroom price)
b. Rs 8,80,000.00 (ex-showroom - discount offered)
c. Rs 8,54,000.00 (calculated as 95% of ex-showroom price)

Also, if I declare the IDV value of my car as Rs 7,00,000.00. I understand that on a total loss of the car, the amount the insurance company will pay me is Rs 7,00,000.00. I wanted to know if in this case, on a partial loss which say costs Rs 50,000.00 for the repair work, will the insurance company reduce the amount payable to me by the same percentage that I reduced the IDV of the car from the ex-showroom price of the car or will I get paid fully as the damage cost is still under the IDV I declared.

They will reduce it in each and every claim.

Your IDV has to be Rs. 8,36,000/- (Which is 880000 X 95%)

[r_nairtvm]

Originally Posted by rjvora_2000

They will reduce it in each and every claim.

Your IDV has to be Rs. 8,36,000/- (Which is 880000 X 95%)

Kalyan,

I would modify the above slightly; If the dealer discount is shown in your final invoice then your IDV should be INR 836 K. If its not shown in final invoice the you are better off taking a IDV as option c. INR 854 K.

Not that it would make any significant difference at any stage.

Best Regards & Drive/Ride Safe

Ram

[DCEite]

What exactly are the anti-theft devices which make the car eligible for discount. Does an aftermarket Gear lock count?

[rjvora_2000]

Originally Posted by DCEite

What exactly are the anti-theft devices which make the car eligible for discount. Does an aftermarket Gear lock count?

Any anti-theft device which is approved by ARAI. (Automotive Research Association of India) for more in this please visit their web site. Home : Automotive Research Association of India(ARAI)

[kalyan_hyd]

Originally Posted by rjvora_2000

They will reduce it in each and every claim.

Your IDV has to be Rs. 8,36,000/- (Which is 880000 X 95%)

Thanks for the suggestion. Now I understand how IDV is calculated.

[kalyan_hyd]

Originally Posted by r_nairtvm

Kalyan,

I would modify the above slightly; If the dealer discount is shown in your final invoice then your IDV should be INR 836 K. If its not shown in final invoice the you are better off taking a IDV as option c. INR 854 K.

Not that it would make any significant difference at any stage.

Best Regards & Drive/Ride Safe

Ram

Thanks for the suggestion. Will look at the final invoice and then decide upon the IDV value as you suggested. In the sales contract, it does mention the discount.

[bblost]

My car is insured for about 2Lakhs.
If I crash into a Mercedes and their bill runs to a couple of lakhs. Will my insurance company pay them.

The assumption is I am at fault and agree that it is my fault.
So does my insurance company pay them.

What if instead of my car, its my bike that crashes into the merc and shatters the windscreen.
Will my insurance cover the repair cost.

[sdp1975]

There are 2 parts to any insurance : own damage(OD) and third party insurance.

OD(damage to your 2L car) is optional, but 3rd party insurance(Merc) is compulsory as per law.

There are limits to 3rd party damage, don't remember what the limits are. Even if it's your fault, insurance should cover it ( provided that the driver had a valid license while driving, was not under the influence of anything - standard clauses ).

The process is for the 3rd party to go to the MACT ( motor accidents claims tribunal) and claim for damage. Long drawn affair.

[rjvora_2000]

Originally Posted by sdp1975

There are 2 parts to any insurance : own damage(OD) and third party insurance.

OD(damage to your 2L car) is optional, but 3rd party insurance(Merc) is compulsory as per law.

There are limits to 3rd party damage, don't remember what the limits are. Even if it's your fault, insurance should cover it ( provided that the driver had a valid license while driving, was not under the influence of anything - standard clauses ).

The process is for the 3rd party to go to the MACT ( motor accidents claims tribunal) and claim for damage. Long drawn affair.

Sirji wrong information.

Originally Posted by bblost

My car is insured for about 2Lakhs.
If I crash into a Mercedes and their bill runs to a couple of lakhs. Will my insurance company pay them.

The assumption is I am at fault and agree that it is my fault.
So does my insurance company pay them.

What if instead of my car, its my bike that crashes into the merc and shatters the windscreen.
Will my insurance cover the repair cost.

If bike owner crashes to Mercedes guy that it's the Mercedes guy's comprehensive insurance policy which will pay for repair of damage of his Mercedes car and not the bike's insurance policy.

Third party dose not mean the way you have understood it. Otherwise Mercedes guy will not go for comprehensive insurance, forget about him even you and me we all will have TP only.

[mrkanitkar]

My Corolla 1.8 VL, due for Insurance renewal. It's new car, I got delivery on 1st Jan 2009. The ex-showroom price was 1273740/- Current Insurance is done with United by dealer. Dealer have tie up with United,ICICI. There is no claim in last one year, dealer paid 40K for premium.
1. What should be new IDV?
2. Should I change insurance company even if there is no tie up with dealer?