[vsathyap]

Hi All,

I am in the process of renewing the insurance for my car and while doing so, I happened to read through the cost details mentioned. The payment details in the policy is divided into 2 major sections -

1. Own Damage Premium
2. Liability Premium

While I can completely make sense of the own damage premium part, where I fall short is in my understanding the the liability premium part.

I'm attaching the screenshot of my policy below with the charges mentioned. What confuses me is this : I am paying 100Rs for Compulsory PA Cover for Owner Driver. I am also paying a 100Rs for a Hired Driver's coverage. Now, technically since the car in question is a Honda City (Sedan) and it can fit only 5 people "legally", why am I paying an optional premium for 5 people?

Shouldn't this section mention coverage payment for the rest of the 4 people in the car, i.e., Rs. 400? How can they charge me for coverage of a driver and 5 other people when the carrying capacity as per legal norms is 5?

Am I failing to understand this part correctly or is this a cleverly hidden charge where we are being taken for a ride?

When I asked the lady at the counter about this "5th person" charge, she says "its like that only in the system".

Can the wise gurus here please help me understand this part? Also, in the process, it will be good if someone can explain all the TPPD and other terminologies involved in the screenshot - and kindly request you to do so in plain English and Layman's terms which everyone (specially yours truly) can understand.

Note to Mods: Please move this thread to an appropriate sub forum if required; I felt that this was a "technical" topic and hence posted here.

[R2D2]

Insurance companies do not see a paid driver as a normal user of the car. He is treated as an employee of the owner of the car. The cover applies only if a driver is at the wheel when the accident occurs.

On the other hand, "occupants" are the car owner's family members, friends and acquaintances. As you may have noticed the the owner driver is covered separately.

[wildsdi5530]

What OP means is that the Driver owner/ Paid driver is one seat, there are 4 remaining seats, why should he pay for 5 passengers?
Amount should be 100/100 + 400.

[swissknife]

There could be a situation where the car could be driven by the owner/family member along with 4 occupants, which covers the risk for 5 people.

[R2D2]

Originally Posted by wildsdi5530

What OP means is that the Driver owner/ Paid driver is one seat, there are 4 remaining seats, why should he pay for 5 passengers? Amount should be 100/100 + 400.

As I said Insurance Cos don't see things that way. A driver is an employee while an owner-driver or occupants are different entities.

Either way these charges are optional so the OP can choose not to pay in case he feels he's getting ripped off.

It is also important to remember this is a PA not medical cover premium and only compensation for injuries. The payout will be determined by the nature and type of injuries suffered by the occupants and/or driver. Details are given in policy document.

[ghodlur]

Originally Posted by vsathyap

Shouldn't this section mention coverage payment for the rest of the 4 people in the car, i.e., Rs. 400? How can they charge me for coverage of a driver and 5 other people when the carrying capacity as per legal norms is 5?

Am I failing to understand this part correctly or is this a cleverly hidden charge where we are being taken for a ride?

Assume you are the owner of the car buying the Insurance.
1) PA cover for owner driver i.e you
2) PA cover for paid driver i.e when you hire a driver to chauffeur you or your family
3) PA cover for 5 person i.e for your family members occupying the car with anyone other than 1 & 2 are driving.

The other cost related to paid driver is towards the legal liability part.

TPPD = Third Party Property Damage.
PA = Personal Accident
IMT = Indian Motor Tariff.

Hope the above helps.

[StableRide]

I am sharing here the detailed wording for "PA for Unnamed Passengers" clause from Royal Sundaram policy.

This clarifies that the UNNAMED PASSENGERS cannot be driving the car. The driver is NOT included in this insurance add-on.

Also, there is no option to decrease the premium based on how many UNNAMED passengers there are, as long as the total seating capacity limit is obeyed.

--

One thing not clear to me, however, is that what is the definition of a paid driver? If I am making payment to anyone with valid driving licence, is that enough proof of them being a paid driver? Even if I hire them for a day long trip?

[sundarsarma]

Can someone please clarify.

During the first year of policy cycle for a new car, it is Own Damage for 1 year and Third Party for 3 years. In the section where they mention about the third party premium, just underneath or beside, they add the premium for Personal Accident cover for owner driver and cover for unnamed passengers.
After 1st year, when we renew the policy for Own Damage, should we pay premium again for PA and unnamed passengers? Does the amount paid during the 1st year valid for third party cover these as well for 3 years?

[thanixravindran]

Originally Posted by sundarsarma

After 1st year, when we renew the policy for Own Damage, should we pay premium again for PA and unnamed passengers? Does the amount paid during the 1st year valid for third party cover these as well for 3 years?

Basic Third party liability is for 3 years and premium is already collected. This is mandatory.

PA cover for owner driver: This is mandatory. In my new car policy, it is explicitly mentioned as 3 years and with dates. In my old car, I used to renew it each year and it used cost around Rs.300 per year. Please check with your insurer as the amount they added seems to be for 3 years. If so, you don't have to pay again. Get it endorsed in the insurance document.

Legal liability to Paid driver and PA cover for Un-named passenger: This is optional. For my policy, it is one year only and in general too, it is one year. Coverage for Un-named passenger also can be changed and premium will vary. You can renew it or skip it as per your need.

[sundarsarma]

Dear Ravindran, Thank you. I shall be able to save approximately 750/- inclusive of taxes on these two add-on's.

Checked with Acko and it seems they might not be able to endorse this in their policy, but i can opt out without adding these and shall produce the other policy if demanded.

Also, i am using my previous car's 50% NCB and that saves me a reasonable amount too.

Thanks again.

[thanixravindran]

Originally Posted by sundarsarma

Dear Ravindran, Thank you. I shall be able to save approximately 750/- inclusive of taxes on these two add-on's.

Checked with Acko and it seems they might not be able to endorse this in their policy, but i can opt out without adding these and shall produce the other policy if demanded.

Also, i am using my previous car's 50% NCB and that saves me a reasonable amount too.

Thanks again.

Hi sundarsarma - I believe you are referring to the optional Un named passenger cover that you don't want to renew and save Rs.750/- which is listed in your current policy. There is also Rs. 150/- for the Paid driver cover. With that, you can save Rs. 900/- if you don't want them. Or is it that Acko is providing both at Rs. 750.

What does your current insurance company told about the compulsory PA cover? Is the Rs. 909/- you paid last year for 1 year or 3 years? PA cover of Rs. 15 Lakhs is mandatory but shall be in only 1 vehicle or stand alone cover. So if you have another car or bike in your name and you have opted in it, you don't need it as well.

50% NCB is applicable only for Own Damage premium and is not applicable for any of these covers.

[sundarsarma]

Dear Ravindran, the PA cover in Bajaj seems to be for 1 year only. So i had to opt for these add-ons in Acko.

I do have my two-wheeler with Acko and have opted for PA cover for this as well. In this case, shall i skip PA cover add-on ?

Yes, thanks, i understand that NCB is only for the OD premium. For claiming this 50%, we need to purchase the policy as per the default 20%. After the policy is generated, we need to send an email to hello@acko.com the newly generated policy, NCB certificate and Vehicle RC. Once they verify, the policy will be updated with 50% endorsement. The difference will be credited to the payment source.

[thanixravindran]

Originally Posted by sundarsarma

Dear Ravindran, the PA cover in Bajaj seems to be for 1 year only. So i had to opt for these add-ons in Acko.

I do have my two-wheeler with Acko and have opted for PA cover for this as well. In this case, shall i skip PA cover add-on ?

Yes, thanks, i understand that NCB is only for the OD premium. For claiming this 50%, we need to purchase the policy as per the default 20%. After the policy is generated, we need to send an email to hello@acko.com the newly generated policy, NCB certificate and Vehicle RC. Once they verify, the policy will be updated with 50% endorsement. The difference will be credited to the payment source.

Yes, if you have PA cover for Rs. 15 Lakhs in any one vehicle that is enough. So you can skip it in your new car if your bike has it. Refer to the FAQ section in Acko website itself - https://www.acko.com/personal-accide...car-insurance/

[sundarsarma]

Thanks Ravindran. It's all sorted now. I have renewed the OD policy with Acko ( Inclusive of 50% NCB and PA cover removed ). The amount for both these have been refunded back to my source account.

My initial renewal quote received from Bajaj Allianz came to 23460/- for all the options i have now opted with Acko. Still amused how this much difference it could be. Am i doing it right ? Not Sure.

The initial quote was 14114 with 20% NCB which was updated later with 50% NCB and the difference was refunded back to the source.