[tp_dominator]

Originally Posted by Endofdayz

hi All,

My car Hyundai Verna is up for insurance renewal. this year i had made one claim. however have noticed that insurance premium is very high. Query i have is does zero dep insurance makes sense since its been 3 years now ? if not i can save some amount there. please suggest.

Your premium might be high since your Verna falls under cars with engine capacity of more than 1500cc (I am using you have the 1.6 L engine one) for which third party premium rates have increased by almost 3.5k. Coupled with that no NCB means your premium is definitely going to be higher.

Also, the prices of add on covers increase with the age of the vehicle. However, I would definitely recommend you to go with the Zero Depreciation add on cover as it will minimize your losses in the unfortunate incident of an insurance claim.

[drmohitg]

I had bought a new car in March 2017 with the insurance cover provided by Tata AIG. Now I have transferred my old car's number on my new car and vice versa. Do I update the same in my insurance policy? The engine number, chassis number, owner's details etc stay the same.

[ghodlur]

Originally Posted by drmohitg

I had bought a new car in March 2017 with the insurance cover provided by Tata AIG. Now I have transferred my old car's number on my new car and vice versa. Do I update the same in my insurance policy? The engine number, chassis number, owner's details etc stay the same.

Yes you will need to update the same in the Insurance policy records too provided the same have been updated in the RTO records and the RC reflects it.

[amutreja]

Experts, Just a quick question - I renewed my year old Baleno's insurance for 2017-18 (Switched from National to Bharti AXA) from Policy Bazaar. I could see variation in IDV (Insured Value / Cover) from different companies and it wasn't standardized to 10% less from previous IDVs. Being a low risk taker, I chose the one with the lowest IDV and hence, the lowest premium.

I wonder how could they reduce it so much bringing the overall insurance cost down in just a year? I mean there must be a minimum value set by IRDAI a company can offer just for the sake of insuring a vehicle.

Coming to my question, can I get a higher IDV / Cover for my car next year within same or different insurer? Or will it only be calculated based on the existing policy (which is lower than it should be for a 1 year old vehicle)

E.g. Market value of my car today is Rs. 5,00,000. However, this year I got it insured for 3,50,000.
Next year, market value of my car would be 4,50,000. Will I be able to insure it for 4,50,000?

[Thad E Ginathom]

Seems to me that IDV never reflects the actual value of the car. That is, if you were (god forbid) to write it off, the insurers would not pay you enough to fo out and buy an identical car in identical condition.

That said, the payment I received for my flooded vehicle, plus the amount that the vehicle sold for did equal what I thought I might have been able to sell the car for had it not been been damaged.

My understanding is you can pay a higher premium and get a higher IDV --- but the company is not obliged to pay out the entire sum even in the case of theft or write-off.

Experts: have I got these things right?

[hserus]

Well you can buy a zero depreciation policy so that your IDV is protected. And bumper to bumper coverage so that you can claim larger than usual dents and scratches. The insurer will become very rich.

[fordday]

Originally Posted by Thad E Ginathom

My understanding is you can pay a higher premium and get a higher IDV --- but the company is not obliged to pay out the entire sum even in the case of theft or write-off.

Experts: have I got these things right?

I am not the expert. But I have seen this in the policy wordings of my BAllianz policy.

"IDV shall be treated as the 'Market Value' throughout the policy period without any further depreciation for the purpose of Total Loss (TL) / Constructive Total Loss (CTL) claims."

This may mean they are supposed to give back the IDV in full in case of write-off.

Again, experts please comment.

Fordday.

[drmohitg]

Originally Posted by ghodlur

Yes you will need to update the same in the Insurance policy records too provided the same have been updated in the RTO records and the RC reflects it.

Sir I am yet to receive my policy document from Tata AIG and have only got the cover note. There is no mention of the car's registration number on the cover note. I called my SA and she told me that for a new car in the first year, there is no vehicle registration number on the insurance policy since the policy is issued before the vehicle goes to the RTO. According to her the same can be updated at time of renewal next year and as a result the change of number doesn't matter at all.

I have got the changes done at the RTO and have received the updated RC from them.

[hserus]

Originally Posted by drmohitg

According to her the same can be updated at time of renewal next year and as a result the change of number doesn't matter at all.

I have got the changes done at the RTO and have received the updated RC from them.

That is fine. You can send the updated RC to the insurer now itself - walk into one of their offices and give them (or just courier) a xerox of the updated RC and a copy of your policy, + a note requesting them to update the details.

[ghodlur]

Originally Posted by Thad E Ginathom

My understanding is you can pay a higher premium and get a higher IDV --- but the company is not obliged to pay out the entire sum even in the case of theft or write-off.

Correct. Even if you under insure or over insure you car, in case of total loss the Company will calculate the amount payable based on current market value and not on the IDV. Hence no point in paying a higher premium for a higher IDV.

Originally Posted by fordday

This may mean they are supposed to give back the IDV in full in case of write-off.

Not the IDV in full as there will be calculations to determine the pro rata market value of the vehicle. But yes, Insurance co will pay around the IDV.

[hrman]

Originally Posted by ghodlur

Correct. Even if you under insure or over insure you car, in case of total loss the Company will calculate the amount payable based on current market value and not on the IDV. Hence no point in paying a higher premium for a higher IDV.
.

Are you sure about this? I read in some thread that the insurance company is liable to pay back the IDV, since that is the market value agreed with the seller at the time of taking the policy.
Hypothetically, if the market value turns out to be higher than the agreed IDV, will the company pay more for the vehicle in a total loss scenario? I have my doubts, because the premium was charged keeping the IDV in mind. Why will they charge a lower premium pay back a higher IDV.

[Ry_der]

Hi all.
I am raising this query on behalf of a neighbour.

My neighbour met with an accident with his car in Ahmedabad. He has a lerner's licence and was travelling with a hired driver holding a valid driving licence. At the time of the accident, my neighbour was driving the vehicle and the driver was sitting in the second row.

After the accident, both of front row occupants sustained some major injuries(Non Fatal Ones). Now when my neighbour applied for insurance claim against damage of the car the insurance company rejected the claim on the grounds that the valid licence holder was sitting in the rear seats so the learning licence rules were not being followed at the time of accident.

What are the options available for my neighbour apart from going to the court?

Any help is this matter will be highly appreciated since the repair bill is going to be huge.

Thanks.

[ghodlur]

Originally Posted by hrman

Are you sure about this? I read in some thread that the insurance company is liable to pay back the IDV, since that is the market value agreed with the seller at the time of taking the policy.
Hypothetically, if the market value turns out to be higher than the agreed IDV, will the company pay more for the vehicle in a total loss scenario? I have my doubts, because the premium was charged keeping the IDV in mind. Why will they charge a lower premium pay back a higher IDV.

Market value does not mean the selling value of the vehicle. You are right in saying that in case of Total loss, the IDV will be considered as the market value of the vehicle. So in that case the selling value of the vehicle If it was not for total loss) will not be considered and the agreed IDV will be considered provided the correct IDV is considered based on the age of depreciation schedule.

In case of total loss the liability of the Insurance co will not be more than IDV less the scrappage value. So either the Insurance co will sell the scrappage on your behalf and give you the money or you can sell the same on your own. What the Insurance co will give is the agreed IDV minus this amount. This is what mentioned in the policy document.

The Company may at its own option repair reinstate or replace the
vehicle or part thereof and/or its accessories or may pay in cash the
amount of the loss or damage and the liability of the Company shall
not exceed :
(a) for total loss/constructive total loss of the vehicle – the Insured's Declared Value (IDV) of the vehicle (including accessories thereon) as specified in the Schedule less the value of the wreck.

Originally Posted by Ry_der

Now when my neighbour applied for insurance claim against damage of the car the insurance company rejected the claim on the grounds that the valid licence holder was sitting in the rear seats so the learning licence rules were not being followed at the time of accident.

By Learner's Licence I assume your friend has that temporary 3 month licence. If that's the case, I think the Insurance co is right in rejecting the claim purely for the reasons that the driver did not have a valid licence. Learner's licence is not considered valid. See the policy document wordings (c) as below:

This cover is subject to
(a) the owner–driver is the registered owner of the vehicle insured
herein;
(b) the owner-driver is the insured named in this policy.
(c) the owner-driver holds an effective driving license, in accordance
with the provisions of Rule 3 of the Central Motor Vehicles Rules,
1989, at the time of the accident.

I am surprised as to how the vehicle was sold to your friend on the basis on learner's Licence.

[Ry_der]

Originally Posted by ghodlur

By Learner's Licence I assume your friend has that temporary 3 month licence. If that's the case, I think the Insurance co is right in rejecting the claim purely for the reasons that the driver did not have a valid licence. Learner's licence is not considered valid. See the policy document wordings (c) as below:

AFAIK the learning licence is also treated as a valid one if
(A) Any permanent licence holder is accompanying the learner.
(B) "L" sticker on front and rear of vehicle.

I am surprised as to how the vehicle was sold to your friend on the basis on learner's Licence.

I dont think that driving licence is needed for purchasing the vehicle. You only need a photo ID and local Address proof.

[Thad E Ginathom]

Originally Posted by Ry_der

I dont think that driving licence is needed for purchasing the vehicle.

You are right. When I first came here, expected more difficulties being a foreigner dealing with Indian bureaucrats than I actually encountered, but, at first, we did a lot of stuff in my [Indian] wife's name, including buying my first car. It was registered in her name: she has never held a licence.