When you make a car insurance claim, you lose accumulated no-claim bonus
If the damage is such that the repair costs exceed 75% of the insured declared value, the insurance company would consider the claim to be a total loss
My car was recently stolen and the police found it in a wrecked condition two weeks later. I have own-damage and third-party motor insurance. Will the damage be covered? Will I lose my no-claim bonus (NCB) if I make the claim?
—Amit Shetty
The damage that your car has suffered will be covered under the own-damage part of your car insurance policy. If the damage is such that the repair costs exceed 75% of the insured declared value (IDV), the insurance company would consider the claim to be a total loss. IDV is the sum insured for the policy. In that case, IDV would be paid as the claim after deducting the value at which the car can be sold off as scrap.
If, however, the car can be repaired, the insurance company would cover the repair costs of the damages suffered.
When you make a claim in your motor policy, any accumulated NCB will be lost. So, if you make a claim for the repairs of the damaged parts, you would lose the NCB.
I took my car insurance from the car dealer. The own-damage cover is up for renewal after a year. Other insurers are giving me a slightly lower premium. How can I determine whether I should go with them or not? Is it a good idea to switch or should I continue with the current insurer?
—Sakshi Saldhana
The core motor insurance product is standard across insurers. Differentiation is driven by the add-ons offered, and their claim process. Assuming that they are the same, switching to another insurer for a lower premium will make sense for you.
However, before you switch, you should check that the new policy offers you an equal or higher IDV. So, the higher the sum, the better it will be for you. You should also review if the add-ons have been curtailed. It is recommended that you take add-ons of zero depreciation, engine seizure, and consumables coverage. Also check if the new insurer has an equal or better cashless network. This will prove vital for you at the time of claim.
Abhishek Bondia is principal officer and managing director, SecureNow.in. Send in your queries and views at mintmoney@livemint.com
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Business NewsMoneyPersonal FinanceWhen you make a car insurance claim, you lose accumulated no-claim bonus
First Published:15 Mar 2020, 05:58 PM IST
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