Motor product - 24 nov 16 - AMS Loginams.hdfcergo.com/documents/Motor product - 29 nov 16.pdf · Motor Insurance - Introduction Largest contributor to the premium income - 46 % of

Motor Insurance

HDFC ERGO General Insurance Company Limited

Motor Insurance

Highlights

� Introduction

� Product Overview

� Add-on Products

� USP

Company Confidential hdfcergo.com

� USP

� Process.

Motor Insurance - Introduction

� Largest contributor to the premium income - 46 % of total non-life premium

� Largest number of policies issued & largest number of claims

� Mandatory by Act of government (MV Act, 1988)

� Three types of Risks, which emerge out of the use of Motor Vehicle� Third Partly Liability

� Damages to Own Vehicle

� Personal Accident

� Indemnity cover – no new for old replacement

� Sub-products under Motor Insurance


� Sub-products under Motor Insurance

� Private Cars/ Motorised Two Wheelers / Commercial Vehicles

� Policy conditions, wordings have been regulated till 2006 by the Insuranceregulatory & development Authority (IRDA).

� De-tariffing process begun in 2007

� Policy wordings, conditions are standardized & have to be followed by all insurers(except for add ons / riders).

� . Third Party & personal accident premium rates are regulated.

� Own damage risk is rated by individual insurers

Motor Insurance – De-tariff Roadmap

Jan 2007 April 2007 Jan 2008 Jan 2009

Formation of Motor Third Party Pool for Commercial Vehicles

Motor Own Damage add on / rider clauses permitted to be filed & used

April 2012 April 2015

Minimum Third party premium quota over and above DR Pool obligation


Limited de-tariffing ofMotor Own damage rates / Revision of third party rates

Vehicles

Complete de-tariffing ofMotor Own damage rates. Rating to be filed & used

Dismantling of Motor TP Pool and formation of DR Pool

What is Motor Insurance?

� “Motor” as defined under the Motor Vehicle Act is a self propelled vehicle, excluding

vehicles running on rails

� Motor Insurance covers any accidental loss or damage which may result in

� Creation of Liabilities

� Accidental Injury / Death of Third Parties

� Damage to Third Party Property


� Damage to Third Party Property

� Result in a Financial Loss

� Accidental Damage to own vehicles

� Theft of Vehicle / Parts

� Motor Insurance is PROTECTION against the accidental loss or damage to overcome

the Liabilities and Financial Losses.

Type of - Motor Vehicles

� Private cars

� 2 – wheelers*

� Commercial vehicles

� Goods carrying (A) ( trucks, Tempos & Pick ups etc)

� Trailers (B)

� Passenger carrying (C) (buses, taxis, Autos)

� Miscellaneous & Special type of vehicle -D (Agricultural tractors, cranes etc)

� Motor Trade


� Motor Trade

� Road Transit risks (E)

� Road Risks / Trade plate / Trade Certificate (F)

� Internal risks (G)

* Generally Motor policies are for annual period. However for 2 wheeler product customer has an

option to buy 2 year or a 3 year liability only or Package policy.

Type of - Motor Policies

� Liability Only Policy

Covers Third Party Liability for

�Bodily Injury and/ or Accidental Death

�Property Damage

� Package Policy

Covers loss or damage to the insured vehicle, personal accident cover for


Covers loss or damage to the insured vehicle, personal accident cover forDriver and Occupants in addition to the third Party liability coverage.

Type of - Coverage's

SECTION-1: OWN DAMAGE TO THE VEHICLE CAUSED BY:-

� Accidental External means, Burglary, House Breaking , Theft

� Fire, Explosion, Self Ignition, Lightning

� Terrorism, Riots, Strikes, Malicious Acts

� Transit by road, rail, inland waterways, air or lift

� Earthquake, Flood, Storm, Landslide or Rockslide


� Earthquake, Flood, Storm, Landslide or Rockslide

� Protection and removal costs

� Private Cars: Up to `1500/-

� Two Wheelers: Up to `300/-

� Commercial Vehicles: Up to `2500/-

Type of - Coverage's Contd..

PERSONAL ACCIDENT COVER

Compulsory PA for Owner driver

� Covers Accidental Death and Permanent Total Disability

Optional Personal Accident cover


Optional Personal Accident cover

� Any Named Person other than Paid Driver and Cleaner

� Unnamed Passengers other than Paid Driver and Cleaner

� Paid Drivers, Cleaner & Conductors

Type of - Coverage's Contd..

� No Claim Bonus (NCB) – It is discount on own damage Premium. An insured becomes entitled to NCB only at the renewal of a policy after the expiry of the full duration of 12 months, if there is no claim made or pending in the policy.

� Owner Driver Personal Accident Cover – The owner of insured vehicle holding an effective Driving License is termed as an Owner Driver.

CSI – Rs. 1 Lakh Premium – Rs. 50/- (Two Wheeler)

CSI – Rs. 2 Lakh Premium – Rs. 100/- (Private Car)

CSI – Rs. 2 Lakh Premium – Rs. 100/- (Comm Vehicle)


CSI – Rs. 2 Lakh Premium – Rs. 100/- (Comm Vehicle)

� Capital Sum Insured under Optional PA – (Paid Driver / Unnamed Passengers / Pillion Rider)

CSI – Rs. 10000/- Premium – Rs. 7/- (Two Wheeler)

CSI – Rs. 10000/- Premium – Rs. 5/- (Private Car)

CSI – Rs. 10000/- Premium – Rs. 6/- (Comm Vehicle)

Exclusions – What is not covered

� Consequential loss

� Depreciation

� Wear and tear

� Mechanical/ electrical breakdown

� Failures

� Breakage

� Damage to tyres (if car not damaged - 50% clause)

� Known or deliberate accidental losses/damage


� Known or deliberate accidental losses/damage

� Intoxicated driver

� Policy conditions to be followed (area, license etc)

� Other general exclusions (nuclear war etc)

Motor Insurance Add-on Covers


Choose Add – on’s for your Car Insurance

Add on offering

� Zero depreciation (Private car -5 Years & Two wheelers up to 3rd year)

� Loss of use (Only for New Private car vehicles)

� No claim bonus protection

� Emergency Assistance


� Engine & gear box protector

� Cost of consumables

� Return to Invoice (Private car only up to vehicle age below 3 years)

� Emergency Assistance – Wider cover (Key Protect)

Private Car - Current Offering

Add-on Vs. Plan Silver Plan Gold Plan Diamond Plan Platinum Plan Titanium Plan

Zero Depreciation ��

Loss of Use (New Vehicles Only) × �� × × ×

Engine and Gear Box Protector × × × ��

No Claim Bonus Protection × × × ��

Cost of Consumables × × �� × ��


Cost of Consumables × × �� × ��

Return to Invoice * × × × ��

Emergency Assistance ��

Emergency Assistance –Wider Cover (*New Vehicles) ��

•Offering available only with Platinum and Titanium Plan

•Silver plan not offered on D, E1 & E2

� Preferred add on which needs to be sold with Zero depreciation

� Engine & Gear Box Protection

� Emergency assistance

� Emergency assistance – wider cover (For New vehicles only)

� Return to Invoice

� No claim bonus protection

Add on – Zero Depreciation

Provides full claim without any deduction for depreciation* applicable on the Own Damage

Section

� Depreciation for Parts excluded under India Motor Tariff is payable

Previous Depreciation Chart as per Tariff:

Rubber, nylon/ plastic parts, tyres, tubes, batteries, air bags - 50% Fibre / glass components - 30%


� Minimum “ Out of Pocket Expenses”

� No concern about categorization of parts.

Rubber, nylon/ plastic parts, tyres, tubes, batteries, air bags - 50% Fibre / glass components - 30%

All other parts

including wooden

parts

Age <6 m 6m<1yr 1<2yr 2<3yr 3<4yr 4<5yr 5<10yr >10yr

Rate Nil 5% 10% 15% 25% 35% 40% 50%

* Cover excludes Tyres and Batteries

Add on – Zero Depreciation: Illustration

Typical Example:Honda City; Ex-showroom price - Rs. 8,00,0003 years old; IDV @ 40% depreciation - Rs. 5,60,000

Partial loss amount - Rs. 1,70,000� Rubber/plastic parts - Rs. 40,000� Metal parts - Rs. 1,30,000

Claim Settlement Without Add on:

Less Depreciation @ 50% for Rubber/plastic parts Rs. 20,000


Less Depreciation @ 50% for Rubber/plastic parts Rs. 20,000

Less Depreciation @ 25% for Metal Parts - Rs. 97,500

Less Compulsory deductible - Rs. 1,000

Claim payable: Rs. 1,18,500

Claim Settlement With Add on:

Less Depreciation @ 50% for Rubber/plastic parts Rs. 0

Less Depreciation @ 25% for Metal Parts - Rs. 0

Less Compulsory deductible - Rs. 1,000

Claim payable: Rs. 1,69,000

Add on – No Claim Bonus Protection

Retains the “No Claim Bonus” earned on the Policy named contingencies claims

Can be claimed 3 times on the Policy.

Subject to occurrence of the following contingencies :

� Damage to Windshield Glass

� Loss to parked vehicle by external means

� Loss to parked vehicle due to flood, earthquake, AOG perils.

Typical Example:

A parked vehicle is damaged in an earthquake and results in an Own Damage


Applicable to partial losses covered

�Substantial savings in premium

�No loss of bonus due to loss caused by event beyond ones control

A parked vehicle is damaged in an earthquake and results in an Own Damage

Claim. Having made a claim the Insured would lose the NCB accrued over the

past years. This cover would protect the NCB as well as entitle the Insured for

bonus to the next slab at renewal.

Add on – Emergency Assistance

Provides a host of additional aid and assistance at the time of Emergency.

These services may be extended by our TPA.

� Flat Tyre Repair

� Minor repairs on accident spot

� Towing and Ambulance Assistance

� Emergency fuel delivery

� Vehicle key service

� Travel/Accommodation

� Legal services assistance

� Battery jump start service.

� Vehicle Repatriation service.

� Continuation/Return journey.

� Translator service.

� Medical Evacuation


Travel/Accommodation

Arrangement

Subject to loss under Own Damage Section of the Policy

�Makes Sure every you are assisted in every situation.

�No out-of-pocket expenses.

�Extra Assurance to give that extra security and peace of mind

Add on – Engine & Gear Box Protector

Provides cover to internal parts of Engine and Gear Box – applicable on OD section

� Consequential loss excluded under India Motor Tariff is payable

Loss arising out of:

1. Water ingression and


� No worries of driving your vehicle through water logged area

� Relieves you of the additional expenditure incurred due to damage to internal Engine and gear box parts.

2. Damage to engine and gear box arising out of leakage of lubricating oil due toaccidental means

Add on – Cost of Consumables

Provides for payment of consumables such as nuts, bolts, oil etc which are excluded under

the own damage claim

Typical Example:Honda City; Ex-showroom price - Rs. 8,00,000Partial loss amount - Rs. 45,000

� Painting & Denting Rs. 40,000� Consumables Rs. 5,000


*Cover excludes Tyres

Claim Settlement Without Add on:

Less Compulsory deductible - Rs. 1000

Less Consumables - Rs. 5000

Claim payable: Rs. 39,000

Claim Settlement With Add on:

Less Compulsory deductible - Rs. 1000

Claim payable: Rs. 44,000

Add on – Return to Invoice

In the event of Total Loss (TL) or a Constructive Total Loss (CTL), the Insurer will pay the

Insured, the difference between the ‘claim amount receivable’ under the motor package policy

and the ‘value of vehicle’ as per the first sale invoice of new vehicle along with the first time

registration charges and road tax which was incurred on the Insured vehicle.

Eligibility:

� New Vehicles up to 3 years

� First registered owner of the vehicle


� First registered owner of the vehicle

� Available to private cars

Note- Available with Platinum or Titanium plan only

Exclusions:�In case of theft stolen vehicle is recovered within 90 days of theft.�Final investigation report in case of theft claim is not issued by police authorities�Covered vehicle is imported, except for new completely knock down & completelybuilt up unit imported by automotive manufacturer who have their operations in India�Any obsolete/manufacturer discontinued make and model as on date of sourcing�Any non-original equipment manufacturer fitted electrical or non-electricalaccessories including bi-fuel kit, any modification forming part of the invoice but notinsured under own damage section of policy.

Product USP

� Zero Depreciation benefits can be utilized for a All admissible claims during

the policy period (No Restriction on No. of Claims)

� Return to Invoice difference between the ‘claim amount receivable under the

policy’ & the ‘value of vehicle’ as per the first sale invoice of new vehicle

including registration charges and road tax

� Engine & Gearbox Protection - Consequential loss excluded under India

Motor Tariff is payable

� Buy a New Policy or Renew Existing Policy via Online & App (IPO)


� Buy a New Policy or Renew Existing Policy via Online & App (IPO)

� No Documentation Required while Buying Policy Online

� Cashless claim service over 3400+ authorized network of garages across

India

� Seamless claims process with minimum documentation

� Wide Range of add on Plans i.e. Silver, Gold, Platinum

� Comprehensive support through our dedicated customer support team

� Long Term Insurance (2 OR 3 Years) Two Wheeler

Documentation

� POS Policy copy

� Previous Year Policy (PYP)

� Pre acceptance inspection (PAI) Report - Inspection Report for Used car, Break in &

Zero dep cover

� Form 29 & 30 (Used Vehicles)

� Renewal Notice

� Premium instrument – (Cheque & DD)

� PAN Card in cases where Premium is above Rs. 1 Lakh


� PAN Card in cases where Premium is above Rs. 1 Lakh

� Anti Theft Discount – ARAI Certificate

� Automobile Association Discount – Active membership card

� RC Copy

� RI Approval quote for vehicles with IDV of more than Rs. 1.5 Crore for New business

in Private car and Rs. 1 Crore for other vehicles.

Preferred Risks

Private Cars

� Petrol vehicles

� Vehicle age up to 15 years

� Non Zero depreciation policies

Goods Carrying vehicles

� Vehicles below 7.5 GVW

� 3 Wheeler GCV’s


Passenger Carrying vehicles

� 3 Wheeler autos running within city limits

� School or Staff Bus

Private Car: Add-on Covers

Sr. No Cover HDFC ERGO Future RSA Bharti TATA AIG Oriental SBI Bajaj ILGIC Chola

1 Zero Depreciation Claim � � � � � � � � � �

2 Return to Invoice � � � � � � � � � �

3 Engine & Gearbox Protector � � � � � � � � � �

4 Reimbursement of Consumables � � � � � � � � � �

5 Loss of Use (Garage cash) � � � � � � � � � �

6 No claim bonus protection � � � � � � � � � �

7 Key Replacement � � � � � � � � � �

8 Emergency assistance � � � � � � � � � �

9


9 Voluntary Deductible � � � � � � � � � �

10 Add. Personal Accident cover � � � � � � � � � �

Add-on Covers Comparison Contd..

Add-on Covers HDFC ERGO ICICI TATA AIG BAJAJ Bharti

Zero Depreciation Claim No Restriction of Claims 2 Claims Only 2 Claims Only 2 Claims Only 2 Claims Only

Engine & Gear Box Protector

Damage due to Water

ingression & Leakage of

lubricating oil

Damage due to

Water ingression

& Leakage of

lubricating oil

Damage due to Water

ingression & Leakage

of lubricating oil

Damage due to

Water ingression

& Leakage of

lubricating oil

Damage due to

Water ingression

Key replacement cover

Repair or replacement of

car keys

Repair or

replacement of

car keys and locks

Repair or replacement

of car keys and locks

Repair or

replacement of

car keys and locks

Repair or

replacement of car

keys


Return to Invoice Up to 3 years Up to 3 years Up to 3 years

Only new vehicle

through dealers Up to 2 years

NCB Protection

NCB Protected on

windshield claim &

Parked vehicle damage

claim. Next Level of NCB Not Available

Does not offer NCB in

case (after claim) the

customer chooses to

rollover his policy

during renewal. Also

Minimum 25% NCB

slab is the eligibility

for this cover, and on

claim retention of

same slab. Max 2

Claims Not Available

Retention of same

slab of NCB up to 2

claims

� No Claim Bonus Protection from RSA offers the benefit on Windshield replacement

only.

� Bajaj - RTI & Tyre cover sold through German manufacturer tie-up majorly.

� Consumable cover – Bajaj has an exclusion wherein, In case of transfer of ownership,

the benefits under the cover would expire.

Add-on Covers Comparison Contd..


the benefits under the cover would expire.

Thank You


Thank You

Documents

Motor product - 24 nov 16 - AMS Loginams.hdfcergo.com/documents/Motor product - 29 nov 16.pdf · Motor Insurance - Introduction Largest contributor to the premium income - 46 % of