[artrocious]

My car insurance is due for renewal in a few days - 2015 -Renault Duster RXZ AWD.
I had taken showroom insurance last year when I purchased the car which was with TAIG for Rs.50,000. This year they send me a renewal quote with premium INR 34000.

I did some shopping around and ICICI etc. were willing to match the same IDV and comprehensive for INR 25000. I mailed TAIG requesting them to revise the quote to a reasonable number since I want to continue with them - An executive calls up and sincerely apologises that INR 34000 (whopping 9000 extra) is the best offer they can give!! SERIOUSLY?

I was shocked and did another experiment - I called TAIG helpline and tried to buy a "NEW" insurance for my car which is already insured with them - Guess what? They quoted INR 25500 for the same cover on the same car? I instantly told him I want to go ahead with the plan and he asked me old policy details where I told him my old policy is with TAIG - The guy INSTANTLY backed off and said "I will put you through to renewal department, Sir. I can't sell you this insurance"

Is the word "IDIOT" written on my forehead? Is this what I get for already paying a hefty premium in the first place? What happened to my NCB, etc.?

My insurance is due for renewal in a few days and I am keen on continuing with TAIG who are very keen on ripping me off. Can someone suggest what I should do?

[shipnil]

What is the maximum age of a car when the insurance companies stop issuing comprehensive insurance cover? Is it same for all the companies or varies from one to another?

[BenjiRoss]

I am in the process of finalising insurance for my Xcent SXO AT Petrol.
While negotiating the IDV value to a slightly higher figure from Royal Sundaram, the guy kept telling me that there is not point in increasing the IDV as if there is a total loss or theft, the IDV will be what is suggested by the company and increasing the IDV for a quote has no use. The IDV he was quoting was about 5,60,000 and I had requested quotes for 5,80,000 and 6,00,000.

[Zappo]

Originally Posted by artrocious

Is the word "IDIOT" written on my forehead? Is this what I get for already paying a hefty premium in the first place? What happened to my NCB, etc.?

No, but definitely it is written on TAIG's forehead.

Now, my dear good sir, why are you so keen on continuing with TAIG? You already made a huge mistake when you took the insurance from the showroom earlier. At least make amends now. I can't think of even 1 reason that makes you so keen to stay with TAIG. If it is the NCB you are worried about I hope you know that it is freely transferable.

By the way, looking at your profile pic, do you own a Duster? If so then even 25000 is way beyond what you should pay.

[artrocious]

Originally Posted by Zappo

No, but definitely it is written on TAIG's forehead.

Now, my dear good sir, why are you so keen on continuing with TAIG? You already made a huge mistake when you took the insurance from the showroom earlier. At least make amends now. I can't think of even 1 reason that makes you so keen to stay with TAIG. If it is the NCB you are worried about I hope you know that it is freely transferable.

By the way, looking at your profile pic, do you own a Duster? If so then even 25000 is way beyond what you should pay.

Thanks Zappo. I ejected TAIG and went with ICICI for a very reasonable amount with a lot of features. The executives were also very helpful and co-operative.

It was refreshing to see that they were all well informed and knew their job very well.

[ghodlur]

Originally Posted by gearedup

I was also renewing the policy for the previous owner with Iffco Tokio, since the RTO transfer had not taken place. Now when the RTO transfer as well as policy transfer has taken place, then in the renewal quote why am I not eligible for the NCB (20%). Also I (technically the previous owner) was getting an additional 20% bonus on Own damage premium which is missing in the renewal quote.

I apologise if I am missing something very basic here

Sorry a bit confused with your post. What you are saying is that the Insurance policy ownership is transferred in your name and now the policy is up for renewal and you are unable to apply the 20% NCB applicable. Is that correct?? If the policy transfer has happened mid year i.e before the end of the policy year, you will not be eligible for the NCB. You will have to have the Insurance policy for one year and claim free to be eligible for the 20% NCB.

You were never getting the NCB benefit earlier, it was the previous owner who was getting it so that cannot be passed on to you. Hope the above clarifies your doubt.

[ghodlur]

Originally Posted by shipnil

What is the maximum age of a car when the insurance companies stop issuing comprehensive insurance cover? Is it same for all the companies or varies from one to another?

There is no maximum age of a car for insuring comprehensive insurance. However the IDV calculations is restricted to 5 years as per the depreciation table post which the IDv has to be mutually agreed between the Insured and Insurer.

Originally Posted by BenjiRoss

I am in the process of finalising insurance for my Xcent SXO AT Petrol.
While negotiating the IDV value to a slightly higher figure from Royal Sundaram, the guy kept telling me that there is not point in increasing the IDV as if there is a total loss or theft, the IDV will be what is suggested by the company and increasing the IDV for a quote has no use. The IDV he was quoting was about 5,60,000 and I had requested quotes for 5,80,000 and 6,00,000.

That is absolutely correct. The basic mistake which one tends to make is either over insure or under insure the car. A good practice would to be calculate the correct IDV applicable.

[gearedup]

Originally Posted by ghodlur

Is that correct?? If the policy transfer has happened mid year i.e before the end of the policy year, you will not be eligible for the NCB. You will have to have the Insurance policy for one year and claim free to be eligible for the 20% NCB.

You were never getting the NCB benefit earlier, it was the previous owner who was getting it so that cannot be passed on to you. Hope the above clarifies your doubt.

Thanks Ghodlur, yes you got the query right & I renewed accordingly. What I had failed to understand was that NCB is applicable to a owner & not to the vehicle.

[ghodlur]

Coverfox has launched a door step claim service in Mumbai for taking care of hassles one faces during the motor insurance claims.

The service ensures timely claims support with the help of third party auto service providers , with a promise to return car in three days.

Coverfox built Express Claims Services to provide doorstep claims assistance through a team of claims specialists and engaging auto-service providers. The service is currently available to New India, Oriental Insurance, Bharti AXA and L&T car insurance customers in Mumbai for select brands of cars.

Although the service is limited presently to a few Insurance co, going forward, there can be more Insurance co brought under this service umbrella. Also since this is only limited to Mumbai, it waits to be seen if this service will be spread to other Metros too.

Anyone in the coming days buying Insurance through coverfox can let know more about this service and the costs (if additional). Personally I don't prefer the comparator websites.

http://economictimes.indiatimes.com/...w/52324852.cms

Mods: Did not feel to open a new thread for the this news. If this deserves a separate thread, request you to kindly create one.

[Zappo]

Originally Posted by BenjiRoss

While negotiating the IDV value to a slightly higher figure from Royal Sundaram, the guy kept telling me that there is not point in increasing the IDV as if there is a total loss or theft, the IDV will be what is suggested by the company and increasing the IDV for a quote has no use.

Originally Posted by ghodlur

That is absolutely correct. The basic mistake which one tends to make is either over insure or under insure the car. A good practice would to be calculate the correct IDV applicable.

Actually, this is not correct. It can't be. There is a max range up to which the IDV can go up from the quoted amount. This is Insurer dependent. Typically it is a percentage (I think 10 to 15%) of what their system gives you. However, once they sell you a policy and assume the risks for a value X of the insured good (in this case a car) they can't say they will not honor that IDV if and when a claim arises. At the most they can probably depreciate something on a prorata basis (this is only guess but I am not sure of this) from the IDV.

Think of it. What you are saying is similar to a case where someone buys a life insurance of X amount. In the unfortunate incident of that policy getting the claim the insurer comes back and says ok we sold the policy for X amount coverage but on second thoughts the insured's life was not really worth the X amount.

Coming back to cars, the reverse is a clever ploy around IDV and premium that insurers often utilize to gain repeat business. To give an example I had a claim last policy year. After a very long time I had a claim and lost the complete 55% NCB. I was expecting big payout in premium this year. I was surprised when my current insurer sent me a very reasonable looking quote. That was until I suddenly noticed the IDV! They depreciated my car by 30% in a single year to make the quote artificially low. So beware of that as well.

[ghodlur]

Originally Posted by Zappo

Think of it. What you are saying is similar to a case where someone buys a life insurance of X amount. In the unfortunate incident of that policy getting the claim the insurer comes back and says ok we sold the policy for X amount coverage but on second thoughts the insured's life was not really worth the X amount.

Agreed. But the basic difference in the two scenarios is that for the Motor Insurance IDV, there is a specific calculations which has to be adhered to. This is given in all policy document as to how to calculate the IDV as has been clearly mentioned in the CMV Act also. For life insurance scenario, there is no depreciation applicable, hence the IDV or the sum insured has to be complied with all circumstances.

I have not come across any Insurance co who suggest to either increase or reduce the IDV, it is always left to the customers. That's their way of telling the customer is that "you have chosen the amount, we never asked you to. If you need higher IDV, you will have to pay for it". This is the case for the first five years only till the time the depreciation is applicable, post which the IDV is always mutually agreed. In those cases, yes the Insurance co is liable to pay the IDV amount in totality in case of total loss.

[Zappo]

Originally Posted by ghodlur

I have not come across any Insurance co who suggest to either increase or reduce the IDV, it is always left to the customers. That's their way of telling the customer is that "you have chosen the amount, we never asked you to. If you need higher IDV, you will have to pay for it". This is the case for the first five years only till the time the depreciation is applicable, post which the IDV is always mutually agreed. In those cases, yes the Insurance co is liable to pay the IDV amount in totality in case of total loss.

If that would have been so straightforward life would have been simple. Take any car and then seek quotation from 5 different Insurers. See the IDVs you get. For a model year, the prices are standard and thus the IDVs should be the same irrespective of insurer? Should it not be so? But it is never the case. For costlier vehicles I have seen the IDV for the same vehicle varies by as much as 2.5 lakh when the insurers provide you the quote. Typically, the ones whose overheads are higher and thus charge higher premium often try to provide a low IDV to keep their premiums within a comparable range of others.

if you have not noticed this please do have a look the next time. I see this circus every year with my vehicles.

[ghodlur]

Originally Posted by Zappo

For a model year, the prices are standard and thus the IDVs should be the same irrespective of insurer? Should it not be so? But it is never the case.

This is purely because the databases of the Insurance co are not updated frequently, maybe once a year. And that too by the top Insurance cos only. If they had the ex showroom rates of the model on real time basis the IDV calculation for any model/variant would have been same across Insurance cos. The Insurance co cannot be blamed entirely for this as the car manufacturers too have a role to play in this mess by frequently changing the rates. That is the reason there is an option to change the IDV.

This discussion needs a separate thread IMO.

[Zappo]

Originally Posted by ghodlur

This is purely because the databases of the Insurance co are not updated frequently, maybe once a year. And that too by the top Insurance cos only. If they had the ex showroom rates of the model on real time basis the IDV calculation for any model/variant would have been same across Insurance cos. The Insurance co cannot be blamed entirely for this as the car manufacturers too have a role to play in this mess by frequently changing the rates. That is the reason there is an option to change the IDV.

This discussion needs a separate thread IMO.

My last post on this.

Please do go back and check once on your belief that Insurance companies can renege on the IDV. The IRDA regulations only let the insurance companies to reduce the compulsory deductible portion and the scheduled depreciation (on prorata basis) from the IDV. Once the insurance company agrees to cover you for an IDV they can't renege on it.

However, to ensure that one can't run any kind of scam the system inherently gives an opportunity to change the IDV (which is itself based on the ex showroom price) from the standard calculation only by a few percentage points.

[BenjiRoss]

Thanks for the many responses to my query about IDV Zappo and Ghodlur.
I went ahead and renewed with the recommended IDV based on this discussion and what the rep from Royal Sundaram told me.
I am not sure if the rules are different if I change my provider.