Car Insurance Renewal Queries


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Re: Renewal of Car's Insurance!

I have to renew my insurance, the earlier being expired on 23rd March, 2011. IFFCO-TOKIO was the insurer. The details are:
Car Make, Model and Year: Tata Motors, Indigo TDi LS BS III, April 2007
IDV: 2,59,000/- (24-03-2010 to 23-03-2011)
Premium Paid: 7243.79/-
NCB %: 20%

I have friend working with Bajaj Allianz, gave him the details, and quoted the IDV at, a random figure of Rs 1,10,000/-. On that he said that the IDV must be upto Rs 2,25,000/- or the policy won't be issued, and that the premium rates are gone up by 40%.
I have to go out for a trip of 1000-1200Kms on this Saturday and need to get this issue sorted out. Can I pay premium on the randomly stated IDV of Rs 1,10,000/-? If not, then what are the parameters for calculating the IDV?
What will be the consequences if I anyhow pay the premium calculated at an IDV of Rs 1,10,000/-?
 
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Re: Renewal of Car's Insurance!

When we buy a car, usually its insurance is taken care of by the dealer and we don’t bother much about which company's insurance we are getting. But it is our responsibility to renew it and more important. If you experience the service and claims, if any, from the existing insurance company to be good then its most beneficial to continue with them so that you may even receive NCB. Otherwise you have to do a tedious research choosing an insurance company providing the best insurance policy in terms of premiums, services and claims. Alternatively, you can even approach reputed insurance brokers like GEPL Capital providing professional insurance advisory services. Their IRDA certified insurance experts will help you identify the most competitively priced auto insurance from highly rated companies.
 
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Insurance renewal queries

I have some questions regarding the Insurance policy.

The Ertiga is currently insured with ICICI Lombard through Maruti.

I want to know how is the IDV calculated.

At what rate does the IDV depreciate?

The current insurance has a zero depreciation cover.How does this help me?Whats the use and does it really help?

What are they things I should look for when renewing my policy and are there any other companies I should ask for a quote from.Maruti has a tie up with ICICI Lombard so I am leaning to continue with them directly.

Any and all suggestions are welcome.Thank you.
 
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Re: Insurance renewal queries

HI Keith,

IDV is somehow calculated on your last IDV. More the IDV more is the premium.
You can get zero dep again, if insurance company does not creates any fuss about the same.
Look for cash less claims, hassle free claims, engine protector, zero dep, etc.

Check Online Insurance Quotes: Compare Car Insurance India, Life Insurance, Health Insurance, but contact individual company personally.
 
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Re: Insurance renewal queries

Dharmesh Bhai, thanks for the reply.

How is the IDV(Insured's declared value) calculated.Is it the Invoice amount of the car with VAT or without VAT?

In the renewal quote I got from ICICI Lomabard the IDV has reduced by 94k over a year.

What the use of zero dep if the IDV has reduced?How does the zero depreciation benefit me?
 
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Re: Insurance renewal queries

How is the IDV(Insured's declared value) calculated.Is it the Invoice amount of the car with VAT or without VAT?

In the renewal quote I got from ICICI Lomabard the IDV has reduced by 94k over a year.

What the use of zero dep if the IDV has reduced?How does the zero depreciation benefit me?
Hi jarpickle,

Usually IDV is calculated as 90% of previous year IDV (including VAT). Though the insurance companies do have a model specific chart on IDV based on location, year of manufacture, market value etc.

Zero Dep insurance will benefit you as you do not have to pay any depreciation on plastic and other parts.
 
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Keith,

1. IDV - This is the declared value agreed between you and the insurance company. So the value decreases every year, usually by 20-30% every year. Different insurance companies have different % and formula. It is an approx market value of the car. So it can never be higher than the original price of the car. VAT, Cess and other taxes are not actually part of the car's value, so it won't be included. Just saw Anshuman's post mentioning IDV calculation includes VAT. I thought otherwise. Now I'm not sure.

The insurance premium is dependent on the IDV. Your basic premium is a percentage of IDV. The % is different for different class / make of the car. I believe it is same across insurance companies. Once the basic premium is calculated all other additions (zero dep coverage, coverage while driving outside India etc) and deductions (no claim bonus, special discount etc) applied on the basic premium. All of them are % of basic premium which in turn is a % of IDV. So higher the IDV higher the total premium (and coverage of higher amount).

2. Zero Depreciation - This is not to protect against the depreciation of IDV. If you don't have zero dep coverage, for some parts, you won't get 100% money from insurance company, even if it's a brand new car. For example plastic parts. I think the depreciation is 50%. There are few categories of parts which the insurers will cover only 50% or 75% of the value. The zero depreciation coverage (with extra premium) is to remove this.

3. What you should do
a) As Dharmesh said, talk to different companies. 2-3 would be enough. Some companies give higher IDV, extra discounts etc. [You can always go for lower IDV than the insurer suggests, but if you want a higher IDV, you have to talk to them and they may or may not agree based on their policy]. Get the IDV, extra coverage, premium, discount etc from 3 companies. Then decide what IDV you want, what coverage you want, what optionals etc.

b) Then talk to ICICI Lombard (your current provider) and tell them future genarali / some other company is giving better discounts and coverage. They will definitely match it. All companies do that. I don't think the difference in premium will vary so much between different companies. My experience is 10% on renewal (it varies much when you buy insurance with the new car, I think because of dealer's commission also). It is better to continue with the same company. Less head ache.

c) Buy Dharmesh and me coffee. We will pray for the good health of you and your car.
 
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Re: Insurance renewal queries

What the use of zero dep if the IDV has reduced?How does the zero depreciation benefit me?
Zero Dep has nothing to do with IDV. Zero Dep is only useful in case of accident repairs. That you dont have to pay anything from your pocket and company will pay the entire bill.
 
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Got it.

Suppose I have claimed insurance in the first year from 1 company in the second year I take insurance from another company.Do I have to tell about about the claim or give them details about my old policy?
 
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Got it.

Suppose I have claimed insurance in the first year from 1 company in the second year I take insurance from another company.Do I have to tell about about the claim or give them details about my old policy?
You need not tell the new insurance company. But you will not get No Claim Bonus. I believe to get NCB, you need to provide letter/certificate from the old insurer. Otherwise the new company charges you full premium.
 
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Re: Insurance renewal queries

I have some questions regarding the Insurance policy.

The Ertiga is currently insured with ICICI Lombard through Maruti.

I want to know how is the IDV calculated.

At what rate does the IDV depreciate?
Source: United india insurance

The IDV of the vehicle is to be fixed on the basis of manufacturer‟s listed selling price of the brand and model as the vehicle proposed for insurance at the commencement of insurance /renewal and adjusted for depreciation (as per schedule specified below).

This % depends on every insurer (read insurance company). try a google search "idv rate chart india"
 

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