[RemingtonSteele]

Just got a mass mailer from Tata AIG; the mailer can be seen here Be a Smart Motorist
They also collect you contact details; so effectively they are collecting marketing leads.

They say

A Tata AIG Customer Education Initiative, this Factbook is available to you absolutely FREE! Go ahead and get it now.

The Unbelievable Car Insurance Factbook

PLUS Everything you need to know about car insurance.

The factbook can be downloaded here CarInsurancefacts.in

[carboy]

If you do a CNG conversion of your car, is it necessary to inform the Insurance company?
I know that if you want to insure the CNG Kit, you need to inform the Insurance company - i.e. you pay an extra premium to insure the CNG also as per the bill value of the CNG kit.

However, if you are willing to forgo the cost of the CNG kit, do you still need to inform the insurance company?

[Max]

Originally Posted by carboy

If you do a CNG conversion of your car, is it necessary to inform the Insurance company?
I know that if you want to insure the CNG Kit, you need to inform the Insurance company - i.e. you pay an extra premium to insure the CNG also as per the bill value of the CNG kit.

However, if you are willing to forgo the cost of the CNG kit, do you still need to inform the insurance company?

Yes, you need to inform CNG conversion to your insurance company and have it added in your insurance policy and also add CNG conversion in RC book.

[ssh1979]

Originally Posted by RemingtonSteele

Just got a mass mailer from Tata AIG; the mailer can be seen here Be a Smart Motorist
They also collect you contact details; so effectively they are collecting marketing leads.

They say


The factbook can be downloaded here CarInsurancefacts.in

Probably browser issues or network filters here at office but I am not able to download from this location. Can you/anyone who has downloaded be kind enough to attach it to this post please?

[ghodlur]

Originally Posted by ssh1979

Probably browser issues or network filters here at office but I am not able to download from this location. Can you/anyone who has downloaded be kind enough to attach it to this post please?

File attached. Hope this helps. This is a very basic Insurance handbook.

[fifthgear]

I have a 4+ yr old car which has a few scratches - noticeable scratches on the metal doors and minor dents - tinkering is required. No replacement required.

Would the insurance be reduced by 35% or will the repairs be fully covered?

The 35% is the depreciation of metal parts between 4 to 5 yrs

[bharatbs]

Thanks for this excellent FAQ

What is the IRDA recommended depreciation on IDV value? Could you list it by different years?

[ghodlur]

Originally Posted by fifthgear

Would the insurance be reduced by 35% or will the repairs be fully covered?

No the repair cost will not be fully reimbursible, you will have to pay the 35% of the repair cost. Rest will be borne by the Insurance company.

Originally Posted by bharatbs

What is the IRDA recommended depreciation on IDV value? Could you list it by different years?

You will find it in almost every Insurance policy document which is as per the IRDA recommendations. Pls see below:

AGE OF THE VEHICLE % OF DEPRECIATION

FOR FIXING IDV

Not exceeding 6 months 5%

Exceeding 6 months but not exceeding 1 year 15%
Exceeding 1 year but not exceeding 2 years 20%
Exceeding 2 years but not exceeding 3 years 30%

Exceeding 3 years but not exceeding 4 years 40%
Exceeding 4 years but not exceeding 5 years 50%

[sourabhzen]

Are the ball bearings in the wheels covered by the insurance?

One of my friend had zero depreciation policy but he had to pay the cost of ball bearings of the front wheel after an accident as the insurance company said that they are consumables. The cost of BB was 8.5 K!

[guptavis]

Originally Posted by ghodlur

No the repair cost will not be fully reimbursible, you will have to pay the 35% of the repair cost. Rest will be borne by the Insurance company.

really? i thought depreciation is subtracted only for replacement. i think labour charges are 100% covered are they not?

Originally Posted by sourabhzen

Are the ball bearings in the wheels covered by the insurance?

One of my friend had zero depreciation policy but he had to pay the cost of ball bearings of the front wheel after an accident as the insurance company said that they are consumables. The cost of BB was 8.5 K!

yes, ball bearings are treated as consumables because they grind away during normal operation of the vehicle, just like the tyres or clutch plate. so are not covered in insurance.
the cost seems to be very high. which car was it?

[sourabhzen]

Originally Posted by guptavis

really?
the cost seems to be very high. which car was it?

It was a VW POlO Tdi. I am not sure about the cost of bearing for other cars but this pinched a lot.

[dhrupadh]

Originally Posted by ghodlur

No the repair cost will not be fully reimbursible,
AGE OF THE VEHICLE % OF DEPRECIATION

FOR FIXING IDV

Not exceeding 6 months 5%

Exceeding 6 months but not exceeding 1 year 15%
Exceeding 1 year but not exceeding 2 years 20%
Exceeding 2 years but not exceeding 3 years 30%

Exceeding 3 years but not exceeding 4 years 40%
Exceeding 4 years but not exceeding 5 years 50%

This might be a silly question but as I read more about these values, I am confused between two different ways to calculate IDV:
1. reduce last year's IDV by at least 10% to arrive on this year's IDV
2. reduce the ex-showroom price by the percentage mentioned in the table above

1st point is straightforward. In case of the second point, my understanding is that the value to be reduced is calculated as a percentage as per the table on the ex-showroom price. So for a 1 year old vehicle, the IDV will be 15% reduction of the ex-showroom price.

Is this understanding correct?

Which of the above two is the standard practice?

The difference in the two approach in terms of exact value might not be significant but I would like to know how they are calculated to arrive at the exact value as a standard practice.

[ghodlur]

Originally Posted by dhrupadh

I am confused between two different ways to calculate IDV:
Which of the above two is the standard practice?

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.

[dhrupadh]

Originally Posted by ghodlur

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

Thanks for the inputs.

My only concern is that if somehow I manage to convince them for 3.4 as IDV (which is according to IRDA), will they honour it if any claim is made in case of theft/total loss?

[ghodlur]

Originally Posted by dhrupadh

Thanks for the inputs.

My only concern is that if somehow I manage to convince them for 3.4 as IDV (which is according to IRDA), will they honour it if any claim is made in case of theft/total loss?

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.