Can I get insured for a higher amount?

[Insured]

I have an eight-year-old Maruti 800 in good condition and definitely worth more than the Rs 50,000 my insurer has valued it at. Can I get it insured for a higher amount?

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[Investorboy]

For vehicles older than five years, the ‘sum insured’ is to be determined mutually by your insurer and you. This sum insured, referred to as the insured declared value (IDV), is what your insurer will pay you if your vehicle is stolen or damaged beyond repair. In other words, that’s the maximum your insurer is liable to pay you.

Generally, the insurer gives you an IDV estimate. If you think it undervalues your car, ask for a review. If the insurer doesn’t relent, your only option is to ask another insurer for a higher IDV. I’ve seen this happen for luxury cars, but not for entry-level cars like a 800, where the valuation is more efficient.

Cases of total loss are few—most accidents require the car to be repaired. This aspect of your policy, where the insurer gives you part-compensation for repair, remains unchanged even if the IDV is lowered.

[Raj]

I have an eight-year-old Maruti 800 in good condition and definitely worth more than the Rs 50,000 my insurer has valued it at. Can I get it insured for a higher amount?

The car insurance would be done on the basis of IDV. Because your car is more than 5 years old than IDV will not come into picture. The insured value of the car would be decided on the basis of mutual consent between Insurer and Insured. If you are able to convince the insurance cos underwriter and go for value higher than 50000/- (in your case). Than the law of over insurance comes into picture and you pay more amount but will get the actual amount.

So I would suggest pay the premium actual value of the car.

[pawan]

I have an eight-year-old Maruti 800 in good condition and definitely worth more than the Rs 50,000 my insurer has valued it at. Can I get it insured for a higher amount?

Insured - Underinsurance or Overinsurance both are bad. So go for the value with the mutual consent with the insurer. So that you would not face any problem later on.