Automobile Insurance - FAQ

[dhrupadh]

Originally Posted by ghodlur

They would and they are liable to once the policy is issued. No two thoughts about that. I am searching for the document which gives the details about the IDV calculations Insurers are supposed to use, will attach once I locate that.

I talked to the dealer and he insists that they have a system which has all the details regarding the previous insurance and they just have to input the car registration number and it will automatically calculate the IDV for the renewal which is currently taking as 20% reduction on the showroom price for my case of 1 year completion. When I countered with the argument that 1 year is yet to complete, he says that when the policy comes into effect, it will be over an year.

So they can't do anything to change the IDV.

So I have decided to go with the same.

[livetodrive]

Hi,

In an insurance claim settlement sheet I found the following columns which I could not understand. Can anyone please explain the following:

Salvage Net Part Amt O/F Est. DT Est. Pt Est.
Thanks and regards,
livetodrive

[travelex]

Thanks for this thread. Unfortunately I read this after I met with an accident yesterday.
My car is insured with Bharti axa. Can anyone tell me if at all there is a difference between a zero depreciation and a depreciation cover policy? If there is, which one is better?

[ghodlur]

Originally Posted by travelex

Thanks for this thread. Unfortunately I read this after I met with an accident yesterday.
My car is insured with Bharti axa. Can anyone tell me if at all there is a difference between a zero depreciation and a depreciation cover policy? If there is, which one is better?

Sad to know about your accident, hope the occupants are safe.

Zero depreciation is an addon cover provided by Insurance co above the normal insurance policy. You have to pay extra 3K or so for the zero dep add on cover over and above the Insurance premium cost. A depreciation cover is already inbuilt within the normal policy. Zero depreciation liberates you from contributing towards repair charges in case of claims, the complete expenses is borne by the Insurance co. All you have to pay is the Rs1K claim charges. Hope this helps.

[travelex]

Thanks. I was the only occupant and I did not have any harm. I called up Bharti axa and confirmed that I have depreciation cover on my policy.
Also on reading the details on Bharti website

Basic Cover

Cover includes comprehensive car insurance (if your car is stolen, damaged by fire or during an accident)
Third Party Liability (if other people claim against you for injury or damage to their car or property)
Personal Accident cover for the driver offering a compensation of Rs. 2 lakhs in the event of death/permanent total disablement arising from car accident

and as add on

You can customize your policy with add-on covers:

Depreciation cover - Get 100% of the value of the replaced part, at the time of damage

Invoice Price cover - Get back the insured value of the car along with registration, road tax & insurance, in case of theft or total loss

Medical Expenses - Cover treatment towards physical injury for the driver and passengers caused by car accident up to Rs. 10,000 per person.

Personal Accident cover for Passengers - Gives a compensation of Rs. 1 lakh for the passengers travelling in the car at the time of accident in the event of death/permanent total disablement

Hospital Cash - Covers daily cash benefit up to Rs. 1000 per day for maximum 30 days on hospitalization towards treatment and medical needs in case of car accident

[CRV2010]

Please help!

Our old car is in my mother's name and we have not claimed any damages from last two years.

We are planning to sell this car and buy a new car soon however the new car would be in my name. What will be my chances to get the NCB transferred from the old car insurance to my new car insurance.

[ghodlur]

Originally Posted by CRV2010

Our old car is in my mother's name and we have not claimed any damages from last two years.

We are planning to sell this car and buy a new car soon however the new car would be in my name. What will be my chances to get the NCB transferred from the old car insurance to my new car insurance.

Sorry mate, you cant transfer the NCB of the old car to your new car unless you buy the new car in your mother's name. Only then can you use the NCB during Insurance buying. NCB always remains with the owner and does not go along with the car.

[CRV2010]

Originally Posted by ghodlur

Sorry mate, you cant transfer the NCB of the old car to your new car unless you buy the new car in your mother's name. Only then can you use the NCB during Insurance buying. NCB always remains with the owner and does not go along with the car.

Thank you!

Is my only other option is to transfer the ownership from my mother to me. Will this affect the resale value of the car ?

[ghodlur]

Originally Posted by CRV2010

Is my only other option is to transfer the ownership from my mother to me. Will this affect the resale value of the car ?

Transfering the ownership of old car from your mother to you will not help in using the NCB for new car insurance purchase. NCB in no way is related to car re-sale value.

The only alternative you got is sell the car ( without tranferring to your name) and buy a new car in your mother's name OR pay the normal insurance for the new car and get the new car in your name.

[YGarg]

My car usage is small (< 10000 kms/year), mostly on town roads or highways. I'm planning to buy a Safari Storme LX or EX as my next car, and (though it may appear a bit weird) I'm seriously considering "Third-party only" insurance on it. The money saved will be approx 35000 in first year alone, and I think it would more-than-compensate the requirement of maintenance (multiplied by probability) if needed. What is your expert opinion on this?
P.S. My driving style is sedate, and vehicle use will be single-handed.

[ghodlur]

Originally Posted by YGarg

My car usage is small (< 10000 kms/year), mostly on town roads or highways. I'm planning to buy a Safari Storme LX or EX as my next car, and (though it may appear a bit weird) I'm seriously considering "Third-party only" insurance on it. The money saved will be approx 35000 in first year alone, and I think it would more-than-compensate the requirement of maintenance (multiplied by probability) if needed. What is your expert opinion on this?
P.S. My driving style is sedate, and vehicle use will be single-handed.

On the contrary I would advocate the Comprehensive insurance for the highway driving since the kind of accident the car can meet on the highways would result in higher repair expenses than the ones encountered in city limits driving. However sedate you may drive but there's no guarentee that others may be driving in the same style. Although the proposition of savings is substantial, I would advise that you opt for the comprehensive insurance.

[dhanushmenon]

I am buying XUV 500 W8 in another fortnight's time.
I am looking at insurance fields now and to be frank, am quiet neatly confused.

As per my understanding, these are the things I should be opting for:
1) Cashless claims
2) B2B
3) zero dep.

Is there anything else which I should care my thoughts to?
Does the clause of "max number of claims in a year" be taken to seriously?

regards
Dhanush

[ghodlur]

Originally Posted by dhanushmenon

I am buying XUV 500 W8 in another fortnight's time.
I am looking at insurance fields now and to be frank, am quiet neatly confused.

As per my understanding, these are the things I should be opting for:
1) Cashless claims
2) B2B
3) zero dep.

Is there anything else which I should care my thoughts to?
Does the clause of "max number of claims in a year" be taken to seriously?

regards
Dhanush

Dhanush,

Sorry if this is coming as late.
B2B and zero dep are one and the same. These are basically the add ons one can buy along with the comprehensive Insurance. Pls note that this add a cost over and above the normal Insurance premium. I would suggest opt for a zero dep with NCB retention feature. This way any claims in an policy year will not affect your NCB. This feature is available in Future Generali atleast, dont know about others. Worth checking.

Reg no of claims limitation, there are some insurers who offer unlimited claims. I am sure there must be a catch somewhere, need to dig out and find.

[F150]

Originally Posted by ghodlur

As per IRDA regulations, the second point of IDV calculation is the correct one, however most of the Insurers (in fact all of them) adopt the first point of IDV calculation as their database is not regularly updated with the latest ex-showroom prices which keep changing as per the auto industry decisions. Hence Insurers use a thumb rule of reducing the IDV by 10% of the previous year. Even the 10% IDV calculation is many a times flawed due to mistakes on the Insurer's part to give a correct IDV.

Car owners need to take a call as to which practice they would adopt.

Hmm.

Coming back to my previous question, IDV for a 5Lac (Exshowroom) price car should be Rs 2,50,000 after 4 Yrs.

Bajaj Allianz has sent me a renewal notice for Rs 3,54,497 and I can reduce the IDV to Rs 3,36,158

Please suggest !!

[ghodlur]

Originally Posted by F150

Coming back to my previous question, IDV for a 5Lac (Exshowroom) price car should be Rs 2,50,000 after 4 Yrs.

Bajaj Allianz has sent me a renewal notice for Rs 3,54,497 and I can reduce the IDV to Rs 3,36,158

This means that BA's database must be reading the car cost as 7L maybe slightly lesser too. Which I guess would be the current exshowroom cost of the car model/variant. Call them up and enquire if thats the case. If yes, then you stand to gain the extra IDV at the premium cost.