Current insurance doesn't offer zero depreciation: Cancel & buy new?

The current policy is just 2 months old & I’ve already made a claim.

BHPian vattyboy recently shared this with other enthusiasts.

Hi, fellow BHPians.

I have just a 2-month-old comprehensive insurance policy for my Jeep Compass starting from 26 January 2023. Last month on 5 Feb 2023, it got damaged in an accident and because the policy was not of zero depreciation, I had to spend a huge amount of money on its repair (a total of 7 lakh bill and had to pay 3 lakhs)

Now, I want to buy a new policy with zero depreciation coverage so that next time my car is covered totally.

Now, I am confused and want your help.

1. Can I buy a new insurance policy with zero depreciation coverage without cancelling my current 2-month-old policy? So will there be an issue during the claim next time with my new policy?
2. Can I buy a new policy now and cancel the current policy later on (in 2-3 days)?
3. Can I cancel my current policy if I made a claim?
4. Will I get a refund if I cancel my current policy?

I just want to buy a new zero depp policy and don’t want to get a few thousand bucks refund by cancelling the current policy. All I want is next time there should not be any issue in the claim settlement from the new policy.

Here’s what BHPian Axe77 had to say on the matter:

I don’t have an answer off hand but can you not call the existing insurer and offer to pay the difference to enhance your current policy to zero dep and ask them if that would be permitted?

Here’s what BHPian kosjam had to say on the matter:

In addition to what Axe77 has mentioned, you cannot have 2 concurrent policies on the same vehicle. (Multiple policies are only possible on humans) Vehicles have a finite value, and no insurer would be interested in insuring partly.

Since insurance policies are now updated on a national portal, a new policy added against a particular registration number will automatically supersede the previous policy, whether it is current or not.

Here’s what BHPian Ry_der had to say on the matter:

Sharing my experience which might help you.

In July 2022, I renewed my father’s bike insurance through Acko/go digit (Do not remember exactly). The Fitness of the bike was going to expire in the month of Nov. 2022. When the RC renewal process was started, our agent informed my father that the renewed policy is not updated at Vahan Portal. So, Another policy was purchased and renewal was completed. Afterwards, I called up customer service of the previous insurer and informed them that I wish to cancel my existing policy. They asked for the reason and the new policy’s copy and deducted some amount on a pro-rata basis. The remaining amount was refunded to me which was appx. 70 to 80% of the premium paid by me towards policy renewal.

So, yes, there is a way. You can get another policy with zero dep and cancel the existing one after issuance of the new policy. Better to confirm the same from the existing insurer to avoid any issues later on.

Here’s the solution BHPian vattyboy found and shared with other enthusiasts:

UPDATE (SOLUTION FOUND)

I put a lot of effort into this matter and did a lot of research. I called every Insurance company’s toll-free helpline and also contacted nearby insurance agents.

The answer is quite easy. You just have to buy New Insurance with suitable add-ons like Zero depp. Etc from a different company or the same company whatever you like and then inform the previous insurer to cancel the previous policy. The previous insurer also refunds the money according to how many days we have used it. When the previous policy is cancelled by the previous insurer then the new policy is updated automatically on the Vahan portal, if not then ask the current insurer to update it on the vahaan portal.

Keyword: Current insurance doesn't offer zero depreciation: Cancel & buy new?