[reverse_gear]

Originally Posted by abhi3284

Thank you for responding to my queries ghodlur. Have 1 more query...While talking to my Old Car Insurance Company 'HDFC Ergo' regarding NCB Letter, the person at the other end requested to provide a Cancel Cheque and stated they will be refunding the NCB Amount to me. Is this the correct approach? As per my understanding, they should be providing me with a NCB Transfer letter, that I need to provide to the New Insurance Company, correct?

You have to ask them for NCB transfer certificate, not a refund of NCB. They do not need a cancel cheque for transfer certificate. In fact, in order to have the NCB transfer certificate issued, HDFC Ergo may ask you to pay the NCB amount applied on the old policy pro rated for the remaining days on the policy. This is because you are effectively withdrawing the NCB deduction from the old car and applying to the new car. So the residual amount from the NCB savings has to refunded to the insurance company.

Originally Posted by abhi3284

As an illustration, the OD Part of my Old Car Insurance is only 1000/-. So, if they refund me 50% NCB, it will only be 500/-. Whereas, the OD Component of my New Car Insurance is 50000/-. So, by showing the 50% NCB Transfer letter to the New Insurance Company, I should be getting a benefit of 25000/-. Is my understanding and calculations correct on this?

That is correct, if you are able to transfer the insurance to the new company. Bust just a clarification. Have you spoken to Bajaj Allianz and have they agreed to refund the excess OD amount based on a NCB transfer certificate? Usually they have to be informed about it at the time of policy insurance, though not strictly necessary.

As an example, I recently transferred NCB of 25% from a car that I sold (Renault Duster) to a new car (Kodiaq). The OD component on the Duster was only 3,500, so the NCB applied in my old policy was around 900. I paid ~650 based on the residual number of days of the old policy, to transfer the NCB to the new policy. Since the OD component on the new policy was ~40,000, I got a refund of Rs.10,000 on the new policy. In my case, the old and new insurance were both with Royal Sundaram, maybe that helped the process somewhat.

[ghodlur]

Originally Posted by abhi3284

Thank you for responding to my queries ghodlur. Have 1 more query...While talking to my Old Car Insurance Company 'HDFC Ergo' regarding NCB Letter, the person at the other end requested to provide a Cancel Cheque and stated they will be refunding the NCB Amount to me. Is this the correct approach? As per my understanding, they should be providing me with a NCB Transfer letter, that I need to provide to the New Insurance Company, correct?

As an illustration, the OD Part of my Old Car Insurance is only 1000/-. So, if they refund me 50% NCB, it will only be 500/-. Whereas, the OD Component of my New Car Insurance is 50000/-. So, by showing the 50% NCB Transfer letter to the New Insurance Company, I should be getting a benefit of 25000/-. Is my understanding and calculations correct on this?

The Cancel cheque request from HDFC is for transferring the NCB refund amount to you in case they don't provide the NCB benefits in the new car Insurance buying process. Also the NCB refund should be equal to the new Insurance NCB equivalent value on OD premium by all means and not related to old insurance OD premium. As I mentioned earlier, ideally HDFC should provide a NCB letter to you so that you can use when buying insurance for new car. The NCB letter does not look at any amount, it only mentions the NCB in %.

[abhi3284]

Originally Posted by ghodlur

The Cancel cheque request from HDFC is for transferring the NCB refund amount to you in case they don't provide the NCB benefits in the new car Insurance buying process. Also the NCB refund should be equal to the new Insurance NCB equivalent value on OD premium by all means and not related to old insurance OD premium. As I mentioned earlier, ideally HDFC should provide a NCB letter to you so that you can use when buying insurance for new car. The NCB letter does not look at any amount, it only mentions the NCB in %.

Originally Posted by reverse_gear

You have to ask them for NCB transfer certificate, not a refund of NCB. They do not need a cancel cheque for transfer certificate. In fact, in order to have the NCB transfer certificate issued, HDFC Ergo may ask you to pay the NCB amount applied on the old policy pro rated for the remaining days on the policy. This is because you are effectively withdrawing the NCB deduction from the old car and applying to the new car. So the residual amount from the NCB savings has to refunded to the insurance company.

That is correct, if you are able to transfer the insurance to the new company. Bust just a clarification. Have you spoken to Bajaj Allianz and have they agreed to refund the excess OD amount based on a NCB transfer certificate? Usually they have to be informed about it at the time of policy insurance, though not strictly necessary.

As an example, I recently transferred NCB of 25% from a car that I sold (Renault Duster) to a new car (Kodiaq). The OD component on the Duster was only 3,500, so the NCB applied in my old policy was around 900. I paid ~650 based on the residual number of days of the old policy, to transfer the NCB to the new policy. Since the OD component on the new policy was ~40,000, I got a refund of Rs.10,000 on the new policy. In my case, the old and new insurance were both with Royal Sundaram, maybe that helped the process somewhat.

Thank you both for your inputs. I will check further with HDFC Ergo.

@reverse_gear, silly question maybe, but in your scenario, post the 25% refund of 10k, did the 25% NCB still apply on your Kodiaq, or NCB starts from 0, as you got the 25% refund?
Also, i have not spoken to Bajaj Allianz yet, as NCB Letter is valid for 3 Yrs., so i can also use it during 1st year renewal.

Thanks,
Abhishek.

[Transmission]

How does a CIBIL score affect car insurance premium (renewal)?

I was pushing my car dealer for discounts on my insurance renewal, and I was asked for PAN number and date of birth (which I gave after a moment's thought) - for CIBIL score (their term) based discounts.
In hindsight, I think I made a mistake - whats CIBIL score got to do with car insurance quotes since I am not getting any loans?

[vinodh_eee]

A question to the experts. I renewed my insurance from policy bazaar. I overlooked the default IDV chosen by PB and completed the payment. However the IDV is too low. Almost 30% less than ex showroom price for a one year old car. Is it possible to modify the IDV. If it helps, it has been less than 12 hours since I paid. Thanks in advance.

[SoumenD]

Was looking to renew my car insurace and the quote from Dealer as expected is super high(16-18k). Nil depreciation specially looks very high at ~9.9k for icici lombard & 8.6k for Royal sundaram. Is this normal for a 5 year old car?

Policy bazaar quotes show very less(6-8k) but am not sure how hassle-free will it be when the time comes for claim, so usually stick to the dealer provided insurance.

For reference its a Honda Jazz VX CVT 2019 model and will complete 5 years later this month. Appreciate some insights into this?

[madmaxvistian]

Originally Posted by SoumenD

...Nil depreciation specially looks very high at ~9.9k for icici lombard & 8.6k for Royal sundaram. Is this normal for a 5 year old car?

Policy bazaar quotes show very less(6-8k) but am not sure how hassle-free will it be...

Hi, Zero depreciation does carry a hefty premium once you cross 5-years of car ownership. In fact, there are very few companies offering the same.

As long as you choose some reputed insurance provider with reasonable claim settlement ratio and cashless support (a must-to-have), it doesn't matter whether you buy your insurance from an online aggregator or directly with the provider or through dealership. Please go with the lowest quote (provided there are no hidden terms or deviations) with an optimum IDV.

[ex-innova-guy]

I had a doubt regarding setting my IDV. My previous-year insurance IDV is ₹14,54,450/-. On PolicyBazaar, I have the option to increase the IDV as per my choice, but another option says, ‘What should be my IDV?’ which states that the IDV should be at least 10% less than the previous year policy’s IDV. Will there be an issue if I increase the IDV?

Thanks in advance!

[r_nairtvm]

Originally Posted by ex-innova-guy

I had a doubt regarding setting my IDV. My previous-year insurance IDV is ₹14,54,450/-. On PolicyBazaar, I have the option to increase the IDV as per my choice, but another option says, ‘What should be my IDV?’ which states that the IDV should be at least 10% less than the previous year policy’s IDV. Will there be an issue if I increase the IDV?

Thanks in advance!

Ideally IDV should be - The Current Invoice Value of a NEW comparable Make and Model of your car LESS year on year depreciation as applicable per the policy terms

This is the IRDA regulation and correct Insurance Practice. But most sles guys for convenience reduce 10% from the expiring IDV. If you take up this with the Branch Manager or CRM level, they will agree to this

Best Regards & Thanks

[SixPistons]

Originally Posted by r_nairtvm

Ideally IDV should be - The Current Invoice Value of a NEW comparable Make and Model of your car LESS year on year depreciation as applicable per the policy terms

This is the IRDA regulation and correct Insurance Practice. But most sles guys for convenience reduce 10% from the expiring IDV. If you take up this with the Branch Manager or CRM level, they will agree to this

Best Regards & Thanks

Thanks, definitely something new I learned today.

[Oppanna]

I recently picked up a 2014 model gypsy and has a valid first party insurance valid till 25th July 2024.

I applied for transfer of insurance to me and the agent/associate is mentioning that I need to pay the NCB amount and only then the insurance will get transferred to me.

The said amount is 3K odd.

If I recollect earlier when I transferred the insurance from first owner of my earlier car to me there was nothing of this sort. Even that was a comprehensive insurance.

[Aviator_guy]

Originally Posted by Oppanna

I recently picked up a 2014 model gypsy and has a valid first party insurance valid till 25th July 2024.

I applied for transfer of insurance to me and the agent/associate is mentioning that I need to pay the NCB amount and only then the insurance will get transferred to me.

The said amount is 3K odd.

If I recollect earlier when I transferred the insurance from first owner of my earlier car to me there was nothing of this sort. Even that was a comprehensive insurance.

This is correct AFAIK. Since you are new owner and new party for the insurance, NCB won't be applicable to you and hence it is recovered (pro-rata basis) by the insurance company during name transfer.

[hemant.kamat]

Can an insurer declare a vehicle as total loss if the sum total of both claims exceeds 75% of the IDV? For example, if the IDV is ₹1L and the 1st claim amount was ₹60K and the 2nd claim amount is ₹20K, can the insurer refuse to approve the 2nd repair citing total loss? If so, what will be the total loss payout, the entire ₹1L or just ₹40K after deducting the 1st claim amount?

[self_driven]

Originally Posted by hemant.kamat

Can an insurer declare a vehicle as total loss if the sum total of both claims exceeds 75% of the IDV? For example, if the IDV is ₹1L and the 1st claim amount was ₹60K and the 2nd claim amount is ₹20K, can the insurer refuse to approve the 2nd repair citing total loss?

No, they will not be clubbed. Each claim is assessed individually.

[prince707]

Hi, my wife accidentally scraped a wall and hit the pillar in her workplace parking. Should I claim my own damage insurance for this or get it repaired at an outside garage at my own cost? I believe no FIR is required. BHPians please guide. This is the first time for me.