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Hunt for insurance

Discussion in 'Insurance & Loan Reviews' started by sathishgv, May 16, 2013.

  1. shams

    shams Esperto

    Messages:
    2,388
    Bangalore
    I dont think this is correct. in the event of Total Loss, IDV is paid in full if one has a zero dep policy else (IDV - depreciation) is paid for normal policies. theres no market value involved here as the depreciation is calculated as per IRDA norms. Infact it is mentioned clearly in the policy that IDV will be treated as market value in the event of Total Loss.

    There is another category known as Net off Salvage(NOS). Vehicle is classified as NOS if estimated repair charges (insured's share) are less than 75% of IDV. Here the vehicle is sold by the insurance company to scrap dealers/garages. the salvage amt is paid separately and balance of the agreed amount is paid by the Insurance company. Here we can say that market value may come in picture indirectly in deciding the agreed amount.
    Last edited: Jun 6, 2013
    3 people like this.
  2. ramjn

    ramjn Staff Member Janitor

    Messages:
    5,243
    Chennai
    Linea 1.3
    Here goes next question. How does the insurance company decide whether it is total loss or NOS? I think this is where the companies will try to cheat customers.

    Sent from my Micromax A116 using Tapatalk 2
  3. anoop

    anoop Superiore

    @shams: What I was trying to say is, when we choose an IDV, we should always try to choose an IDV which is in sync with the market price - if we try to increase the IDV above the market rate, I am not sure the
    insurer will honor if it comes to awarding it (as per the workshop guys I have talked to).

    For example, my last year IDV was 4,51,800 INR. This year when I was hunting for insurance, I got a chance to put my IDV as high as 4,60,000 INR which is actually higher than last year's IDV. I may be wrong here, but I do not think if the need arises, the company will not honor the very high IDV, but will take the market depreciation (30% for vehicles exceeding 2 years but not exceeding 3 years) to settle the claim.

    Again, I reiterate - I am not 100% sure about this. Just a casual search on internet will show us 100's of horror stories trying to get the normal IDV in case of total loss - I just wonder what will be the case if I have a very high IDV.
  4. shams

    shams Esperto

    Messages:
    2,388
    Bangalore
    I get your point anoop but the it is Insurance company's responsibility to honour the claim in full because it is them who had offered it in the first place. In the policy its clearly written that IDV will be treated as market value.
    Now I know all this looks vert rosy to read in the policy but in real life situations things turn out to be different.

    As Ramesh has also asked, I will tell you how the customer is made to suffer here by exploiting the definition of total loss.
    Most of the major accident cases are not treated as Total loss barring a few which are very obvious from the vehicle condition. Insurance companies and dealer bodyshops work in unison and the repair estimate which is prepared is not allowed to increase 75% of IDV which is the basic criteria for TL/CTL (CTL is contructive total loss where cost of parts to be changed/repaired exceeds 75% of IDV). customer is left helpless here as it is very difficult for him to find out what parts can be replaced and what can be repaired when we are talking about 200-300 parts.

    As a result the vehicle is classified as Net off Salvage which I explained in my previous post and there are no strict rules defined by IRDA for this. Hence we customers are left at the receiving end.

    Total Loss is one thing which is accepted by the insurance company very rarely as it means loss for the company from all sides. In cases of Total loss the vehicle is no longer road worthy and the policy holder is not required to submit RC and keys to insurance. Hence the road tax can also be refunded. Also If any salvage buyer doesnt get the RC then there are very little chances that he will buy the vehicle from insurance company as a result company has to pay the full amount.
    1 person likes this.
  5. sathishgv

    sathishgv Regolare

    Messages:
    496
    Paradip, odisha
    Grande Punto 1.3 90 HP
    Shams i don't understand the IDV is the value that is calculated based on the depreciation and the depreciation amount is same for any particular year. say for example the depreciation value is 15% for a 2-3 years old vehicle. so i you have bought an insurance with an IDV say 5,00,000/- which is arrived by deducting the depreciation (15%) from the current market price of the vehicle and if you have a case of TL/CTL (which will be within the depreciation period of 1 year) then the insurance company should settle 5,00,000/- and not 4,25,000/- (5,00,000 - 75,000 (15% of 500000)) which will be a double depreciation.

    @anoop. you are right when IDV is more your premium is also high but in my case the IDV is high but the premium amount that i pay for the same IDV from other insurance companies is very less. With each of the insurance company i contacted everyone has a range of IDV and not a single IDV for the same age of the vehicle and you are allowed to choose between this range.

    For my 90 HP the current market price is 738047/- so by deducting 15% (2-3 years old)depreciation my IDV should be 627340/-, is this the way the IDV is calculated?
    Last edited: Jun 10, 2013
  6. Rachit Bhatnagar

    Rachit Bhatnagar Amatore

    Messages:
    226
    Dehradun
    Hi bkpadi,
    Kindly see post # 21 in this thread where I mentioned about getting Tata AIG 0% dep insurance for Rs 16422/- at IDV of 6.25L
  7. bkpabi

    bkpabi Novizio

    Messages:
    40
    Bangalore
    Hi Rachit Bhatnagar,
    I have checked TATA AIG website and the Quote is coming around 16000 for IDV 595000 with 2500 voluntary deductible(with addons). I think this figures are for normal policy. I will check with them about 0 dep policy. Let see how things goes.
    Last edited: Jun 10, 2013
  8. shams

    shams Esperto

    Messages:
    2,388
    Bangalore
    Hi Sathish, the depreciation will not be calculated for entire year but for the number of months applicable on pro rata basis. For example if the claim happens in the 3rd month of policy cycle then (3/12) * 15% assuming 15% depreciation for 12 months.
    1 person likes this.
  9. bkpabi

    bkpabi Novizio

    Messages:
    40
    Bangalore
    Guys I have short listed two quotes for my Grande Punto
    Future generali: 19600 (Zero Dep + Consumables) for IDV 595000
    No online payment, the agent has to come to my place take snaps of the car and then I need to visit there office as I want to pay by card.
    Bharati axa: 17900 (Zero Dep) for IDV 595000
    Will be buying from Policy Bazar. It is an online policy so I can pay them online using my card and the soft copy will be sent to me with in a day.

    it is good to buy policy from policy bazaar. Please suggest me which plan should I go for?
  10. shams

    shams Esperto

    Messages:
    2,388
    Bangalore
    I bought a policy from policy bazaar this monday for my parents' Figo. Took Iffco Tokio policy as the SC in my native had cashless tie up only with Iffco and Bajaj.

    Bajaj was asking 98xx for an IDV of around 280000 for direct renewal. Buying from Iffco tokio website was also of similar cost. When i got a call from Iffco Tokio while I was browsing their website, I mentioned to the customer care guy on phone that I am getting least premium from policy bazaar so is it okay if I buy from there? He told theres no problem as they are vendors of our company and it wont make any difference to claim process. Hence I went ahead and bought from policy bazaar for premium of 83xx (IDV 310000). Policy was emailed to me instantly. Bajaj Allianz quotation was not available on policy bazaar.
    Last edited: Jun 13, 2013

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