Paint work - Insurance or not

Spectre · 13th December 2010, 21:22

Good day,

I got a pre-owned 3yr old Santro Xing 3 months back, which has a valid comprehensive insurance till April 2011.
The previous owner had NCB, so I had to pay about 1300 extra to insurance company, to compensate for his NCB
The last premium paid was around 4500/-

Now, i have a paintwork to be done, which is quoted @ 5000/- by a 3rd party garage. Kun Hyundai has quoted 8500/-

I spoke to a colleague of mine, who told me NOT to go for insurance for such minor expenses as it will hit my NCB, plus insurance companies will levy 'loading charges' over the next premium, proportional to the claim, done in that year.

Due to lack of time, I sent my brother to check up with the insurance company of the procedure, the % of claim which will be refunded, and on the NCB charges.

He was told :
1. There is no NCB for you, at the moment, It will start only from next year (premium), so no problems with NCB
2. He didnt check on loading charges, but what he was told is, even if you make a claim, the next premium would be the same (around 4500/-)
He was given a form, and procedure is that, a surveyor will visit the garage and based on his feedback, the % claim will be decided, after the bills are submitted.
I will again visit the insurance guy to understand this better and clarify my queries.

I would request T-BHP folks to advice me on, what would be the best approach for me here.
and what would I stand to lose, if I claim insurance.

2500cc · 14th December 2010, 14:55

In your case i suggest you to claim insurance. Because, the NCB which you get for first year is 10% on the premium you pay. If your premium is 4500/-, losing 450/- is no big deal than spending 8k from your pocket.

Cheers,
Rajesh

Spectre · 14th December 2010, 20:26

Thanks for the reply 2500cc

I visited the insurance company and clarified few things :-

1. There is no LOADING CHARGES ( it not in effect nowadays)
2. NCB will be applicable for me, in the next renewal @ 20%
3. My next premium amount was told to be 6500 /- ( please ignore the original post amount, its actually 4XXX + 1300 as the previous owner had NCB)
4. If I claim, the 20% cannot be availed in next premium, so I need to pay around 6500 /-
5. If I don't claim, my next premium would be reduced by 900 as NCB bonus ( it must be 1300 for 20%, not sure though)
6. The surveyor will decided on the claim amount processed after visiting the garage

Should i go for it or not ?

Cesc · 14th December 2010, 22:31

I think you should claim insurance. Even if the insurance folks pay 60% of your paint job (which will amount to around 3k) you stand to gain around 2k by claiming insurance (as the NCB loss is around 1k only).

Your next premium can't be 6.5k because even if you claim insurance (and hence do not get the NCB) your premium will be calculated after decreasing the IDV by 10%. So your next year premium will be around 6k.

The higher the percentage insurance company pays for the paint job the more you should think about getting it done from Hyundai A**.

sureshkishore · 15th December 2010, 05:53

Just check with the Hyundai dealer, whether they would be able to cover all the paintwork in the claim. For example you have to paint your LH & RH side panels.
It may not be possible to claim insurance for Both the sides.
So you would end up paying for one. The cost of which would be high in case of a Dealer W/S. So try to find out how much you would need to shell out.

Spectre · 15th December 2010, 14:02

Thanks. I am also thinking on these lines.

Quote:

Originally Posted by Cesc

I think you should claim insurance. Even if the insurance folks pay 60% of your paint job (which will amount to around 3k) you stand to gain around 2k by claiming insurance (as the NCB loss is around 1k only).

Your next premium can't be 6.5k because even if you claim insurance (and hence do not get the NCB) your premium will be calculated after decreasing the IDV by 10%. So your next year premium will be around 6k.

The higher the percentage insurance company pays for the paint job the more you should think about getting it done from Hyundai A**.

Paintjob is needed only for one side of the car, the left

Quote:

Originally Posted by sureshkishore

Just check with the Hyundai dealer, whether they would be able to cover all the paintwork in the claim. For example you have to paint your LH & RH side panels.
It may not be possible to claim insurance for Both the sides.
So you would end up paying for one. The cost of which would be high in case of a Dealer W/S. So try to find out how much you would need to shell out.

sureshkishore · 15th December 2010, 21:23

So claiming insurance is the way to go.

Redface · 7th September 2011, 13:16

I am kind of having the same problem but I am not able to come to a conclusion.

I bought a ALTO LXI BSIII 11-05-2009
When i bought the car it was left parked in the garage by the owner for a year as the owner was not in the country.
I got the car during 28-06-11
The old insurance had expired, so the seller had taken a new insurance from IFFCO TOKIO paying a premium of Rs. 7907
Obviously as its a new insurance, there is no NCB

An auto hit the car and damage estimate Rs 3500 (body)+ 1000 (brake light)
I am told i will get claim of only 3000 +500 and i have to pay 500 + 500 (claim charges+plastic part)

So i get Rs 3500 from the insurance company.

The car is valuated Rs 2,24,000 in the year 2011 and Gross premium paid Rs 7,907

But what will my premium be if i claim insurance and what will my premium be if i don't claim insurance.

Added criteria of having any other small accident in the period of another 8 months.

Am I saving or Am I Losing something.

13th December 2010, 21:22	#1
Spectre BHPian Join Date: Sep 2010 Location: Chennai Posts: 40 Thanked: Once	Paint work - Insurance or not Good day, I got a pre-owned 3yr old Santro Xing 3 months back, which has a valid comprehensive insurance till April 2011. The previous owner had NCB, so I had to pay about 1300 extra to insurance company, to compensate for his NCB The last premium paid was around 4500/- Now, i have a paintwork to be done, which is quoted @ 5000/- by a 3rd party garage. Kun Hyundai has quoted 8500/- I spoke to a colleague of mine, who told me NOT to go for insurance for such minor expenses as it will hit my NCB, plus insurance companies will levy 'loading charges' over the next premium, proportional to the claim, done in that year. Due to lack of time, I sent my brother to check up with the insurance company of the procedure, the % of claim which will be refunded, and on the NCB charges. He was told : 1. There is no NCB for you, at the moment, It will start only from next year (premium), so no problems with NCB 2. He didnt check on loading charges, but what he was told is, even if you make a claim, the next premium would be the same (around 4500/-) He was given a form, and procedure is that, a surveyor will visit the garage and based on his feedback, the % claim will be decided, after the bills are submitted. I will again visit the insurance guy to understand this better and clarify my queries. I would request T-BHP folks to advice me on, what would be the best approach for me here. and what would I stand to lose, if I claim insurance.
	() Thanks

14th December 2010, 14:55	#2
2500cc BHPian Join Date: Feb 2010 Location: Bangalore Posts: 739 Thanked: 354 Times	Re: Paint work - Insurance or not In your case i suggest you to claim insurance. Because, the NCB which you get for first year is 10% on the premium you pay. If your premium is 4500/-, losing 450/- is no big deal than spending 8k from your pocket. Cheers, Rajesh
	() Thanks

14th December 2010, 20:26	#3
Spectre BHPian Join Date: Sep 2010 Location: Chennai Posts: 40 Thanked: Once	Re: Paint work - Insurance or not Thanks for the reply 2500cc I visited the insurance company and clarified few things :- 1. There is no LOADING CHARGES ( it not in effect nowadays) 2. NCB will be applicable for me, in the next renewal @ 20% 3. My next premium amount was told to be 6500 /- ( please ignore the original post amount, its actually 4XXX + 1300 as the previous owner had NCB) 4. If I claim, the 20% cannot be availed in next premium, so I need to pay around 6500 /- 5. If I don't claim, my next premium would be reduced by 900 as NCB bonus ( it must be 1300 for 20%, not sure though) 6. The surveyor will decided on the claim amount processed after visiting the garage Should i go for it or not ?
	() Thanks

14th December 2010, 22:31	#4
Cesc BHPian Join Date: Aug 2009 Location: Philly, Gurgaon Posts: 651 Thanked: 288 Times	Re: Paint work - Insurance or not I think you should claim insurance. Even if the insurance folks pay 60% of your paint job (which will amount to around 3k) you stand to gain around 2k by claiming insurance (as the NCB loss is around 1k only). Your next premium can't be 6.5k because even if you claim insurance (and hence do not get the NCB) your premium will be calculated after decreasing the IDV by 10%. So your next year premium will be around 6k. The higher the percentage insurance company pays for the paint job the more you should think about getting it done from Hyundai A*. Last edited by Cesc : 14th December 2010 at 22:32.*
	() Thanks

15th December 2010, 05:53	#5
sureshkishore BHPian Join Date: Nov 2007 Location: trivandrum Posts: 489 Thanked: 353 Times	Re: Paint work - Insurance or not Just check with the Hyundai dealer, whether they would be able to cover all the paintwork in the claim. For example you have to paint your LH & RH side panels. It may not be possible to claim insurance for Both the sides. So you would end up paying for one. The cost of which would be high in case of a Dealer W/S. So try to find out how much you would need to shell out.
	() Thanks

15th December 2010, 21:23	#7
sureshkishore BHPian Join Date: Nov 2007 Location: trivandrum Posts: 489 Thanked: 353 Times	Re: Paint work - Insurance or not So claiming insurance is the way to go.
	() Thanks

7th September 2011, 13:16	#8
Redface BANNED Join Date: Aug 2011 Location: Chennai Posts: 33 Thanked: 7 Times	Re: Paint work - Insurance or not I am kind of having the same problem but I am not able to come to a conclusion. I bought a ALTO LXI BSIII 11-05-2009 When i bought the car it was left parked in the garage by the owner for a year as the owner was not in the country. I got the car during 28-06-11 The old insurance had expired, so the seller had taken a new insurance from IFFCO TOKIO paying a premium of Rs. 7907 Obviously as its a new insurance, there is no NCB An auto hit the car and damage estimate Rs 3500 (body)+ 1000 (brake light) I am told i will get claim of only 3000 +500 and i have to pay 500 + 500 (claim charges+plastic part) So i get Rs 3500 from the insurance company. The car is valuated Rs 2,24,000 in the year 2011 and Gross premium paid Rs 7,907 But what will my premium be if i claim insurance and what will my premium be if i don't claim insurance. Added criteria of having any other small accident in the period of another 8 months. Am I saving or Am I Losing something.
	() Thanks