Automobile Insurance - FAQ - Team-BHP

10/6/2014
Automobile Insurance - FAQ - Team-BHP
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Automobile Insurance - FAQ

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Team-BHP Reviews category; AUTOMOBILE
INSURANCE: FREQUENTLY ASKED QUESTIONS Dear
Team BHPians, These are some of the FAQ which
have been created by (me) ...
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12th March 2010, 10:51
rjvora_2000
Senior - BHPian
Join Date: Mar 2008

Location: Mumbai/Mulund
Posts: 1,649
Thanked: 23 Times
#1
AUTOMOBILE INSURANCE: FREQUENTLY ASKED

QUESTIONS
Dear Team BHPians,

These are some of the FAQ which have been created by (me)
Mr. Rupesh Vora - rjvora_2000 and Mr. Imran Jeddy - bblost.
Thank you for your support the entire T-Bhp Moderator team.
Q. What are the quick points that I need to check in my
Vehicle Insurance Policy?
A. All the information must match with your details in RC book
http://www.team-bhp.com/forum/indian-car-loans-insurance/77247-automobile-insurance-faq.html
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including CC, make model, sub type, fuel type, seating capacity
(very important) etc.
Q. What are the points that I need to check in the renewal
notice?
A. IDV is reduced by a minimum of 10% from last year,
Vehicle Registration No. is correct;
Premium is less than the last year (If you have not made any
claim.)
NCB (If applicable) is more than last years NCB. (Maximum
50%)
Sometimes the Third Party insurance premium may get revised.
This is very rare and it may cause the premium to go up.
Q: What are the factors that one should consider before
selecting an insurance company?
A: Ideally the company that has a cashless tie-up with the
widest network of service stations that you may visit in case of
an accident. Secondly, the company which offers you the best
rate without any excess on it. Above all, choose a company that
has a good and fastest claim settling ratio and record.
Q. Why two insurance companys premiums are not
same?
A. All the companies offer 1. Different discounts, 2. Different
P.A. cover and 3. Different IDV. It is the reason of difference in
premium amounts for all the insurance companies.
1. Different discount: - This mainly depends upon the claims
experience of a particular company. If claims experience is good
then they will offer higher discount and if claims experience is
bad then less discounts are offered.
2. PA (Personal Accident): - PA cover premium will not differ
from company to company but it is an optional cover you need
to choose the amount how much you want to cover. Eg. One
company will offer Rs. 100 as a premium and other company will
offer Rs. 250 as a premium.
3. IDV: - Major factor influencing will be IDV. But be very
careful, many companies reduce IDV a lot, reduced IDV means
your premium will be reduced. Most important point here is at
the time of claim insurance company will also have to pay less
for your vehicle. (It should be reduced every year by 10%
minimum to 20% maximum.)
Always keep your IDV on higher side, it helps
1) During claims.
2) At the time of selling car.
Q. What is NCB and how is it calculated?
A: If you dont make any insurance claim on your vehicle then
you are eligible for a No Claim Bonus (NCB). This is a discount
on your premium for the coming year and is calculates as under:
1st year 0% in Own Damage premium amount
2nd year 20% in Own Damage premium amount
3rd year 25% in Own Damage premium amount
4th year 35% in Own Damage premium amount
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Q. How is depreciation on the metal parts calculated?
A. Depreciation on metal parts is calculated as under: 0 to 6th months 0%
7th month to 1st year 5%
1st year to 2nd year 10%
2nd year to 3rd year 15%
3rd year to 4th year 25%
4th year to 5th year 35%
5th year to 10th year 40%
More than 10 year 50%
Q. What is Excess? Is Excess good or bad?
A. Excess means the amount that will be deducted by the
insurance company before making the payment to insured.
There are two types of excesses. First one is compulsory which
depends upon the C.C. (cubic capacity) of the vehicle and which
cannot be removed from insurance policy. The second is a
voluntary excess, which is given to you for reducing the
premium in the policy. This is not a recommended option to
avail, since it reduces the insurance claim payout if its needed.
Never agree for higher excess.
Q. What is covered under own car damage?
A. Vehicle replacement cost or Vehicle repairing cost is paid if
you have opted for this cover in your policy.
Q. When should a vehicle be scrapped (Under total loss)?
A. In case of an accident where the repair cost is more than
75% of car value (IDV), then insurance company will scrap the
vehicle and pay the insurer the entire value of the vehicle.
Q. When do insurance companies not pay the full IDV?
A. If you have not reduced the car value every year minimum by
10% from last years IDV, then your insurance company will not
pay the IDV. If you have increased the car value without any
valid reason than also insurance company will not pay the entire
IDV.
Q. What is covered under third party insurance?
A. In case of an accident, third party property damage and third
party life damage is compensated.
Q. If third party vehicle is smashed beyond repair what is
my liability?
A. Nothing. If you have valid insurance documents then entire
loss is paid by insurance company and you dont have to spend a
single penny from your pocket.
Q. Is the dispute between the insurance company and
others, Am I a party to the dispute?
A. No. once you handover the court case and papers to
insurance company then they take over the case. You may
however need to go once to court.
Q. If the fault is completely mine and I also agree to
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same, does my liability change?

A. No, not at all. The premium you pay covers for potential
mistakes on your side.
Q. Is the dispute between the insurance company and
others, Am I a party to the dispute?
A. No. once you handover the court case and papers to
insurance company then they take over the case and you dont
have to visit court or to do anything.
Q. In case of physical injury or death of passengers in my
vehicle, are the medical expenses covered? Is there a
special type of insurance cover?
A. Under third party cover there is a clause called Unnamed
Passenger PA (personal accident) cover. If you have opted for
this cover (which is available on extra premium of maximum Rs.
100/- per person for a coverage of Rs. 2,00,000/-) then there is
compensation payable to the family members in case of death.
There is no cost of medical bills or any expenses payable to the
injured passengers. Currently there are no options (products) for
getting this covered through vehicle insurance.
Q. Are third party medical expenses covered? Is there a
special type of insurance cover?
A. Yes. The entire expenses are paid under TP(Third Party)
policy, if there is a police case, you dont have to opt for any
special policy. Unlimited medical expenses are paid under TP
policy.
Q. In case of theft, how much will the insurance
companies pay?
A. Entire IDV minus excess is paid.
Q. What is the reason for not paying the entire IDV under
insurance policy, if vehicle is stolen?
A. If you have not reduced the car value every year minimum by
10% from last years IDV, then your insurance company will not
pay the IDV. If you have increased the car value without any
valid reason, then also insurance company will not pay the entire
IDV.
Q. Do I lose my NCB in case of theft of my car?
A. Yes. If there is a theft and you make a claim, you lose the
NCB.
Q. How much time does it take to settle my claim, under
theft insurance?
A. There are lots of documents which have to be submitted in
case of theft insurance. (Approximately number = 18). Post
submission of all those documents, you will be required to
submit a "Final Investigation Report (FIR)". This is usually issued
by/from police station after approx 3 months of the theft. The
claim is paid one month after the submission of the FIR.
Q. My Insurance has expired yesterday is there a grace
period after last date for renewal without
inspection/penalty
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A. There is no grace period in comprehensive insurance. The

NCB savings will elapse after 3 months.
Q. Can I renew my insurance without an inspection?
A. For third party it does not matter. But its mandatory for
comprehensive insurance.
Q. Can NCB be transferred if I change my insurance
company?
A. Yes. Your car carries the NCB; every company has to accept
it.
Q. What is the procedure to transfer my existing NCB to
new car insurance?
A. When you sell your car, you have to submit Form 29 & 30 to
insurance company, which has information about buyer and
seller including their signatures. This verifies that you have sold
your car. Company then issues a No Claim Bonus Certificate
which can be used on your new car.
Q. Can this be still done if I wish to retain my old car?
A. NO
Q. Is an FIR required when I make a claim for a repair?
(Given there are not legal issue with the damage)
A. It depends on a case to case basis. If a tree fell on the car
and destroyed it, you can get full IDV back without an FIR.
Please post your questions in https://www.teambhp.com/forum/india...ce-ask-me.html
Last edited by bblost : 24th March 2010 at 13:11. Reason: Added url to the
Ask ME Thread.
(19) Thanks
12th March 2010, 13:09
#2
nairanupg
BHPian
Join Date: Nov 2009

Location:
Thane,Mumbai,A'bad,Cherthala
Posts: 116
Thanked: 4 Times
Thanks a lot for all the valuable inputs you have been providing
me.
I have been glued to all your comments and titibits since the last
couple of months when i decided to go in for a new car.
and
you have been instrumental in me looking for an insurance
provider other than icici or reliance too.
Thanks a ton and keep up the spirits
(1) Thanks
12th March 2010, 16:26

#3
5/12
10/6/2014
S5157
BHPian
Excellent and Valuable information in one page.I infact compiled

and kept information scattered on a diffrent thread by Rupesh as
a guide before going for the next renewal
Thanks Guys.
Join Date: Sep 2009

Location: Muvattupuzha, KL
Posts: 202
Thanked: 70 Times
12th March 2010, 18:58
#4
SPIKE ARRESTOR
Senior - BHPian
Very comprehensive and well compiled,

Spike
P.S. Does FIR mean "Final Investigation Report" as mentioned
Join Date: Nov 2009

Location: Deutschland
Posts: 2,604
Thanked: 600 Times
by you or First Information Report?
12th March 2010, 21:11
#5
alstonvaz
BHPian
Excellent! Its like reading the terms and conditions of your

insurance policy in simple understandable language.
Join Date: Oct 2007

Location: MH12/GA06
Posts: 57
Thanked: Once
13th March 2010, 09:21
#6
rjvora_2000
Senior - BHPian
Thank you every one for your kind comments.

@alstonvaz - That's the perpose. "To makes things simple for
them who can not understand the complicated"
Join Date: Mar 2008

Location: Mumbai/Mulund
@SPIKE ARRESTOR - FIR means both "First Investigation

Report" as well as "Final Investigation Report". It is important
6/12
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Posts: 1,649
Thanked: 23 Times
where you are using this term?, how you are using this term?
17th March 2010, 12:25
#7
mac187
BHPian
Quote:
Originally Posted by rjvora_2000

QUESTIONS
Join Date: Apr 2009
Location: Bangalore
Posts: 492
Thanked: 256 Times
Q. In case of physical injury or death of

passengers in my vehicle, are the medical
expenses covered? Is there a special type of
insurance cover?
A. Under third party cover there is a clause called
Unnamed Passenger PA (personal accident) cover. If you
have opted for this cover (which is available on extra
premium of maximum Rs. 100/- per person for a
coverage of Rs. 2,00,000/-) then there is compensation
payable to the family members in case of death. There is
no cost of medical bills or any expenses payable to the
injured passengers. Currently there are no options
(products) for getting this covered through vehicle
insurance.
Rupesh: First, very comprehensive article. Many thanks. I would
like to add one point here. If i understood it correctly, you
mentioned in Q16 answer that currently there are no companies
offering coverage for medical bills during accident.
Bharti AXA General Insurance has recently introduced the same.
As a additional product where it covers;
1. Hospital Cash Cover - Rs.1000 for 30 days
2. Ambulance Charges cover - Rs.5000
3. Medical Expenses reimbursement cover - Rs.10,000/ person
I can share more details, as i work for the company. I can mail
brochure if required.
Mods: I work in corporate marketing team of Bharti AXA General
Insurance. I have no direct benefit in this. I am just sharing
information.
Attached Files
Motor Add on.pdf (186.3 KB, 823 views)
(1) Thanks
7/12
10/6/2014
23rd March 2010, 12:58
#8
Twiny
BHPian
Very much handy, I was looking for the NCB % year wise Thanks
Rupesh
Join Date: Dec 2009

Location: Cochin-Bangalore
Posts: 266
Thanked: 34 Times
View My Garage
Infractions: 0/1 (5)
24th March 2010, 10:45
#9
aniketi
BHPian
@Rupesh,
Thanks a lot for the info mate. It was indeed useful. I have few
queries in mind if anybody can clarify
Join Date: Sep 2009

Location: Pune
Posts: 958
Thanked: 299 Times
1 If my car is down or met an accident outside city & i have to

tow it back to garage, will i get towing charges also from
Insurance company?
2 Will i get back 100 % for my glass parts (front or rear glass,
windows, indicators, front lamps etc) and rubber parts ?
3 How many days it should ideally take once you submit bills to
the insurance company? for Cashless, what i have to do?
4 How much money i will get back in case of denting & painting
work? 100% ?
5 Last but not least, which is the best Insurance company with
less hassles & pain? I have to renew my insurance for my Dezire
very soon. How can i negotiate with them for best deal?
20th July 2010, 01:00
#10
guptavis
BHPian
Join Date: Jun 2010
Location: chandigarh
Posts: 248
Thanked: 9 Times
Quote:

QUESTIONS
8/12
10/6/2014
Q. What is the procedure to transfer my existing

NCB to new car insurance?
A. When you sell your car, you have to submit Form 29
& 30 to insurance company, which has information about
buyer and seller including their signatures. This verifies
that you have sold your car. Company then issues a No
Claim Bonus Certificate which can be used on your new
car.
Q. Can this be still done if I wish to retain my old
car?
A. NO
Hello Rupesh and Imran,
Is this a new development?
I remember we got our 8 year NCB transferred to the new NHC
we bought in 2006. We had to get some sort of affidavit from
the insurer that NCB was discontinued on the old car, and was
transferred to new car. We kept the old car and got it insured
without any NCB that year. And the new car got 50% NCB.
19th October 2010, 17:07
#11
spadix
Senior - BHPian
This is an excellent one-stop resource for all insurance-related

queries. Thanks a lot to everyone who's put in their efforts to
create (and maintain) this!
I have one question on the quoted (below) point Quote:
Join Date: Oct 2007

Location: Gurgaon
Posts: 1,018
Thanked: 179 Times

Q. What are the quick points that I need to check
in my Vehicle Insurance Policy?
A. All the information must match with your details in RC
book including CC, make model, sub type, fuel type,
seating capacity (very important) etc.
Across all of my identity cards my name is listed in full as
<Firstname> <Lastname>. However for some reason the RTO
has recorded my name on the vehicle's RC as <Firstinitial>
<Lastname>.
Is this OK for insurance claim purposes? Will they disallow any
claims saying that the name (on the insurance certificate/RC)
doesn't match with, say, the name on the DL? Should I
proactively approach RTO to reissue the RC with the properly
expanded name?
Thanks a lot in advance!
9/12
10/6/2014
Regards,
spadix
28th January 2011, 19:31
arun_kun
BHPian
#12
Re: Automobile Insurance - FAQ
Hi Rupeesh,
I have my insurance for renewal for this feb end. I did claim any
insurance in the first year. How do i claim NCB and how much i
can claim NCB. I have insured with kotak. Do you suggest me to
change to any other insurer. Please advice.
Join Date: Jan 2011

Location: Singapore
Posts: 116
Thanked: 45 Times
Thanks in advance.
14th February 2011, 20:04
recker_us
BHPian
Join Date: Oct 2008
Location: Bangalore
Posts: 178
Thanked: 18 Times
#13
How to transfer NCB to new vehicle while retaining the old one
Hi,
I have an old Alto with 45% NCB where I pay a paltry 2xxx for
comprehensive insurance. I am planning to buy a new Safari
now but want to retain the Alto for few more months?
Is it possible to use the NCB for the New vehicle and get
substantial savings on the insurance? I know its technically not
possible. But, I am ready to buy a new insurance for the Old
Alto. It might cost around 4k for a new insurance on Alto. But
transfering NCB to Safari would save atleast Rs. 10000 every
year.
Thanks,
JP
14th February 2011, 22:57
guptavis
BHPian
Join Date: Jun 2010
Location: chandigarh
Posts: 248
Thanked: 9 Times
#14
Re: How to transfer NCB to new vehicle while retaining the old one
Quote:
Originally Posted by recker_us

Hi,
Is it possible to use the NCB for the New vehicle and get
substantial savings on the insurance? I know its
technically not possible. But, I am ready to buy a new
insurance for the Old Alto. It might cost around 4k for a
new insurance on Alto. But transfering NCB to Safari
would save atleast Rs. 10000 every year.
10/12
10/6/2014
Did the same thing our old M800 was insured with new india
assurance and the new NHC was insured with Bajaj Allianz. The
Bajaj allianz person from honda dealership suggested the idea
and got the formalities done. Ask the Insurance guy at your
TATA dealership.
28th March 2011, 19:37
#15
Re: Automobile Insurance - FAQ
NevGin
BHPian
My car met with an accident. Bus braked hard, WagonR behind it

did the same, my car hit the WagonR from behind. Car has been
given for repairs under insurance. Person driving WagonR says
he does not want to disturb his NCB and wants us to
compensate him. FIR was not filed. This happened 5 days back.
Join Date: May 2009

Location: Bombay
Posts: 353
Thanked: 92 Times
My questiona:
1. Can FIR be filed now?
2. Lets assume for a moment that he finally claims from his own
insurance. The balance amount that his insurance does not pay
him can be recovered from my insurance through third party
claim. What is my involvement in this process?
Any help will be highly appreciated.
Thanks
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