- Date : 01/05/2020
- Read: 5 mins
As a car owner, here are 5 questions you’ve always wanted answers to.

1. FAQ #1- What happens if I don’t make a car insurance claim for a whole year?
No claim bonus (NCB) refers to the benefit extended by insurance companies to policyholders who have not lodged a single claim across the term of their auto insurance. This car insurance claim benefit is given in the form of discount on renewal premium of a certain percentage. Usually, it is 20% discount on premium for one claim free year, 25% for two claim-free years, 35% for three, 45% for four and 50% for five claim free years!
Related: How to save money while renewing motor insurance
2. FAQ #2- Will my auto insurance company give me a payout equal to the full value of my vehicle?
IDV (insured declared value) refers to the maximum amount that can be paid to a policyholder when they make an auto insurance claim for a car that is stolen or totally damaged. The IDV is the sum insured, wherein the amount is fixed when the policy period for the insured vehicle commences. It is based on the listed selling price of a particular model and brand by the manufacturer, and includes local duties/taxes. The IDV amount excludes insurance and registration.
Related: Everything every car owner needs to know about IDV and why it is important
The depreciation slabs used for calculating IDV are:
Age of the Vehicle | Depreciation Value in % |
Less than 6 months | 5 |
More than 6 months but less than 1 year | 15 |
More than 1 year but less than 2 years | 20 |
More than 2 years months but less than 3 years | 30 |
More than 3 years months but less than 4 years | 40 |
More than 4 years months but less than 5 years | 50 |
For vehicles aged 5 years plus, or obsolete | Depreciation percentage differs between insurers |
3. FAQ #3- Is there a way to pay less/ save money on motor insurance premium?Related: Don't Break Your Head. Here's All You Need To Know About Vehicle Depreciation
To answer your motor insurance question, you first need to understand the key factors that affect car insurance premium, so you can get a fair idea of where you stand. For example, a smaller model may fetch lower premium. Similarly, modern auto technology and high end safety features may attract a discount on premium.
But there’s another important thing to consider, and that’s voluntary deductible. Voluntary deductible refers to the minimum amount that the policyholder decides to bear when a claim is lodged. In case you have opted for a voluntary deductible of Rs 17000.
Why would you do this? Because a higher deductible would make you eligible for a higher discount. An inverse relationship exists between the premium and deductible; when the amount of voluntary deductible increases, the motor insurance premium reduces.
Related: How to save money while renewing motor insurance
4. FAQ #4- Could my insurance company reject my car insurance claim?
While it is rare, it is possible that your insurer may reject your car insurance claim. There are a few reasons for this; for instance, if you have been using your car for any purpose other than what was stated initially (i.e. commercial use of personal vehicle or vice versa); if you made modifications to your vehicle (even addition of a roof rack or a paint job) and did not inform the insurer, etc. To make sure this doesn’t happen to you, here are 5 Reasons your car claim gets rejected.
5. FAQ #5- What is the way out if my current auto insurance policy has expired?
An expired auto insurance policy can be renewed once the vehicle inspection has been undertaken by the relevant authorities. Some insurance companies may ask for an additional premium loading (i.e. payments) in case your policy has reached its expiry date 45 days earlier.
Related: Things to learn from car insurance case studies
Do you have more questions about your motor or auto insurance or the best car insurance online? Do send them to us; we shall be glad to answer them for you.