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-   -   Royal Sundaram is not honouring 'NCB Protector' add-on cover! UPDATE - Now Resolved (https://www.team-bhp.com/forum/indian-car-loans-insurance/281688-royal-sundaram-not-honouring-ncb-protector-add-cover-update-now-resolved.html)

Ever since I bought my Fiesta Classic in 2014, I've been a loyal customer of Royal Sundaram (RS) insurance and till date I've had no major hiccups with them except for the latest mishap. As they were offering me Zero Depreciation cover, I've opted for the same till date and every year I also opt for the NCB Protector add on which allows me to make two claims a year without affecting my NCB. (Image attached)


On January 29th 2024, another car rear ended my vehicle and the damage was so extensive that I had no option but to opt for an insurance claim form Royal Sundaram. the surveyor inspected my policy and assured that as I have NCB Protector add on, I could make this claim without affecting the NCB and the claim process as well as repair went through via FASS.


Now that my renewal is due on 23/06/2024, Royal Sundaram is not letting me renew the policy stating that due to some internal company policy they're not allowing renewal for some specific car models. The major gripe is, when I tried to renew the insurance with some other provider, the records show that I've made a claim last year and hence ineligible for 50% NCB!!!

A Royal Sundaram official has responded via telephonic conversation that, the NCB protector will only work if I renew the insurance with RS and they can't let me renew owing to the company policy. I feel so cheated by this attitude of RS.

Seeking suggestions from fellow BHPians on what my next move should be. Should I take this to the consumer court or file a complaint with IRDAI?

I think the fine print might well have precluded changing insurance provider and keeping the NCB. If you have that part of the policy, could you paste it here?

It states that the cover works only if policy is renewed via RS. But isn't it fraudulent to deny renewal after imposing such a condition?

You should involve the Ombudsman for sure to begin the proceedings. Consumer court is long drawn and you never know when it will reach its outcome.

Another option is to ask for an NCB retention letter from RS and use that letter to take a new insurance. If you have NCB protector as per the policy document, they should not have any hesitation to provide you with a NCB retention letter as well.

Wow! That was quick. Happy that your issue was resolved. I am sure this will help others as well who have such an add on for their insurance.

That is standard procedure.

In the year of renewal after a claim, NCB protect is usually not allowed. IT is allowed in the following year, if there is no claim.

Anyway, looks like they have waived that condition.

I think the issue is RS denying to renew the entire policy itself after a claim is made and NCB is intact due to NCB protector add on clause which is tied to them.

This refusal to renew is fraudulent practice since if the OP switches to other insurance provider he loses NCB as RS is forcing him by not renewing the policy.

Shady practices of insurance companies never cease. Good that wiser sense prevailed and they mend their ways.

The one thing I have experienced multiple times is that the regard these guys have for Team BHP. Every time I experience some fraudulent practice, I straight away inform them that I'm an active member of Team BHP and will surely post it here, 10 out of 10 times it has worked in my favour (touch wood).

NCB protection works during renewal of the policy. I have had 2 of my cars repaired under insurance and policy renewed with the same company without loss of NCB. This was with HDFC Ergo

In my opinion, this could be because the Fiesta may be classified as an 'obsolete model' by the insurance company. This usually happens to discontinued cars.

Cheers,

Jay

NCB Protector comes with some hidden terms and conditions

1. The insurance must be renewed with the same insurer the following year, and guess what the premium will be increased.
2. NCB will only be protected if the accident/damage happens without your fault. For eg, if you hit another car, NCB will be lost despite having an NCB protector but if your card is parked and someone else damaged your car, you can utilise this.
3. You can't take NCB Protector in the following year if you have already made a claim.
4. You can claim only twice a year, if you claim thrice, your NCB is lost.
5. Can't protect if the vehicle is declared a total loss.

These were told to me by TATA AIG when I approached them for the claim, not when selling the add-on.

This looks like a modus operandi by these insurers because I was in the exact same boat few months back. I had an Acko NCB protector add-on, I took a single claim, when I went to renew my insurance from them, they cited the exact same reason- can’t offer insurance to your car. Then I went to IRDAI website and sent them the NCB Protect clause that it doesn’t mentions that it should be from same insurer. Haggled with them for 2 months and they finally issued me an NCB certificate and I renewed my insurance from SBI.

I have been a car owner for 8+ years now and 3-4 years back GoDigit quoted me 5x my last premium to renew my policy because I had the gall to file a claim for 14k worth of damage to my car that year.

I understand that underwriting is based on actuarial reasons and companies reserves the right to reject or push away a customer. But GoDigit went 1 step ahead and refused to insure my scooter too hilariously which never had any kind of claim ever and had IDV of 25k. All for a 14k claim which was my only claim till then and still remains my only claim till now.

I switched to another insurer that year for a moderately priced premium and a year later, surprise surprise, GoDigit agents calls me and wants me back. They still now send emails and whatsapp messages near my renewal date even after 4 years and I have no reason to trust them.

Insurance is a Scam !

First Instance:
First year I register one claim when a tractor during the Farmer protest hit my RR door. Insurer was Reliance and it was a pan India tie up with Skoda.
Guess what ? Next year they decline me zero depreciation insurance cover because I claimed in the first year.

Second Instance:

It was my third year of ownership and previous year there were no claims as such. I purchased the insurance from ICICI Lombard as suggested by Brite Skoda Noida.
I get hit by an Uber and try to claim insurance. My claim is rejected saying I have to pay NCB recovery. When I ask them why do I need to pay NCB recovery, I am told that since their records show that I have claimed insurance in the last year and I did avail the 20% NCB during purchase I will have to pay this recovery amount.
I present them with the NCB certificate stating there were no claims last year but ICICI Lombard keeps beating around the same bush again and again. Numerous mails/phones go by and they do not budge.
In order to get my claim approved I pay the recovery of merely 1400 INR.
Guess what ? My claim is still rejected for the same reason.

I gave up and changed my provider to RS. :sadface