[vattyboy]

Hi, fellow bhpians.

I have just a 2-month-old comprehensive insurance policy for my Jeep compass starting from 26 January 2023. Last month on 5 Feb 2023, it got damaged in an accident and because the policy was not Of zero depreciation, I had to spend a huge amount of money on its repair(a total of 7 lakh bill and had to pay 3 lakhs)

Now I want to buy a new policy with zero depreciation coverage so that next time my car is covered totally.

Now I am confused and want your help.

1. Can I buy a new insurance policy with zero depreciation Cover without canceling my current 2-month-old policy? So will there be an issue during the claim next time with my new policy?

2. Can I buy a New policy now and cancel the current policy later on ( in 2-3 days)?

3. Can I cancel my current policy if I made a claim?

4. Will I get a refund if I cancel my current policy?

I just want to buy a new zero depp policy and don't want to get a few thousand bucks refund by canceling the current policy. All I want is next time there should not be any issue in the claim settlement from the new policy.

[Axe77]

I don’t have an answer off hand but can you not call the existing insurer and offer to pay the difference to enhance your current policy to zero dep and ask them if that would be permitted?

[kosjam]

In addition to what Axe77 has mentioned, you cannot have 2 concurrent policies on the same vehicle. (Multiple policies are only possible on humans) Vehicles have a finite value, and no insurer would be interested in insuring partly.
Since insurance policies are now updated on a national portal, a new policy added against a particular registration number will automatically supersede the previous policy, whether it is current or not.

[saket77]

Having more than one policy for a car is not illegal. But is simply foolish apart from being impractical. Because you pay for 2 policies.

In case of damage compensation, if the insurers learn about the other policy, they may put you in a dead-lock by asking you to get the compensation from the other insurer. Quite a disadvantage in my opinion. At the best, the compensation may be split by the insurers and they might offer to cover 50% (though not totally sure- it happens in general insurance like health insurance) but then you are subjected to 2 voluntary deductibles. If anyone thinks that they could make the same claim twice by holding 2 different policies, then there is a principle in insurance called 'Principle of Indemnity' which prohibits the insured to do such an act. In simple terms means that you can not make profit out of your insurance and the compensation should not be more than the monetary damage actually suffered. If this principle is breached, then it surely becomes illegal.

I see no advantage but a lot of disadvantages of having more than one policy for the same period, same car.

Regards,
Saket

[AZT]

Can you call your current insurance provider and see if they can add Zero dep cover and you can pay the additional charge. Let them know you're thinking of cancelling this one and moving to another provider otherwise.

Worst case they say no and you're back where you are now.

[MT_Hyderabad]

While taking your second policy, you will have to declare that you do not have any ongoing unexpired policy.

All policy details are anyway loaded on Parivahan. Hence, do not go that way.

Even for term insurance, if you do not declare the existing policy details and take another policy, in an unfortunate event, please be rest assured that your family members will not get a single penny. The declaration clause is so strong.

[vinu_h]

I have 2 vehicle insurance policies from the same provider Here's my post (Which bank to open an account in?) Bank went ahead and purchased another without knowing I already had. So clearly it is possible to do so.

I have a medical insurance policy from 2 providers. The coverage is slightly different, so I spread my claims accordingly to maximise the refund. Both know that I have 2 and talk to each other to verify.

[Ry_der]

Sharing my experience which might help you.

In July 2022, I renewed my Father's bike's insurance through Acko/go digit (Do not remember exactly). The Fitness of the bike was going to expire in the month of Nov. 2022. When the RC renewal process was started, our agent informed my father that the renewed policy is not updated at Vahan Portal. So, Another policy was purchased and renewal was completed. Afterwards I called up the customer service of the previous insurer and informed them that I wish to cancel my existing policy. They asked the reason and the new policy's copy and deducted some amount on pro rata basis. The remaining amount was refunded to me which was appx. 70 to 80% of the premium paid by me towards policy renewal.

So, yes, there is a way. You can get another policy with zero dep and cancel the existing after issuance of the new policy. Better to confirm the same from the existing insurer to avoid any issue lateron.

[MT_Hyderabad]

Originally Posted by vinu_h

I have 2 vehicle insurance policies from the same provider Here's my post (Which bank to open an account in?) Bank went ahead and purchased another without knowing I already had. So clearly it is possible to do so.

I have a medical insurance policy from 2 providers. The coverage is slightly different, so I spread my claims accordingly to maximise the refund. Both know that I have 2 and talk to each other to verify.

Although possible, but there is a high chance that you will violate the "terms and conditions" of the policy and may end up with nothing, even after paying double premium. I remember it explicitly from the term insurance standpoint and mentioned it in my previous post.

Medical insurance is different, but I am sure you will have to declare that you have a medical insurance while taking another one.

Here is the proof:

https://www.sbigeneral.in/blog-detai...-two-companies

"Can I claim health insurance from 2 different companies?

Yes, you can claim health insurance from two different insurance companies. Here, it is essential to remember that you need to keep the insurance companies informed about any existing health insurance policies that you may have from other companies"


There is similar information available on bajajallianz.com website for vehicle insurance.

https://www.bajajallianz.com/blog/mo...companies.html

"Should you buy two car insurance plans for the same vehicle?

As discussed above, it isn’t illegal to have two insurance policies, but it is not recommended to do so. It may end up violating the terms of either or both insurance companies which can even lead to rejection of your claim. If the first insurer comes to know of the other insurance company, they may ask such other insurer to compensate for any future claims and vice versa. It may even lead to unpaid claims or even significant delays in the payment of compensation by the insurer"

[vattyboy]

UPDATE( SOLUTION FOUND)
I put a lot of effort into this matter and did a lot of research. I called every Insurance company's toll-free helpline and also contacted nearby insurance agents.
The answer is quite easy. You just have to buy New Insurance with suitable add-ons like Zero depp. Etc from a different company or the same company whatever you like and then inform the previous insurer to cancel the previous policy. The previous insurer also refunds the money according to how many days we have used it. When the previous policy is canceled by the previous insurer then the new policy is updated automatically on the Vahan portal, if not then ask the current insurer to update it on the vahan portal.

Originally Posted by Axe77

but can you not call the existing insurer and offer to pay the difference to enhance your current policy to zero dep and ask them if that would be permitted?

This is not possible, once the policy is generated it cannot be changed, or we can not add any add-ons like zero depp, consumables, etc. The only way is to buy the new policy and cancel the old one.

Originally Posted by kosjam

In addition to what Axe77 has mentioned, you cannot have 2 concurrent policies on the same vehicle.

Yes after buying a new one, we have to cancel the old one.

Originally Posted by saket77

Having more than one policy for a car is not illegal. But is simply foolish apart from being impractical. Because you pay for 2 policies.

Sir, I request you to please go through my current situation( 1st post of this thread).

Originally Posted by AZT

Can you call your current insurance provider and see if they can add Zero dep cover and you can pay the additional charge. Let them know you're thinking of cancelling this one and moving to another provider otherwise.
Worst case they say no and you're back where you are now.

This is not possible, once the policy is generated it cannot be changed, or we can not add any add-ons like zero depp, consumables, etc. The only way is to buy the new policy and cancel the old one.

Originally Posted by MT_Hyderabad

While taking your second policy, you will have to declare that you do not have any ongoing unexpired policy.

Not needed to be declared, I bought my new zero depp policy yesterday. Only I have to call the existing company to cancel the previous policy.

Originally Posted by vinu_h

I have 2 vehicle insurance policies from the same provider

Originally Posted by Ry_der

Sharing my experience which might help you.

Spot on, you are 100%, correct buddy.

Originally Posted by MT_Hyderabad

Although possible, but there is a high chance that you will violate the "terms and conditions" of the policy and may end up with nothing, even after paying double premium.
Here is the proof:

[bravo82in]

You can always take a new policy from a different company and the cancel the existing policy.
I have done this and can say with experience. I took a policy online and after payment released that I had opted voluntary deductions add on. As per rules Amendment in policy was not possible nor I can take a new policy from same company. I took a new policy from a different company and then put claim for refund of original policy. The amount was refunded, no questions asked. The entire process was done online.