Now Let’s Look At A Different Example.
You purchase a policy for your car with zero-depreciation and consumable cover as add-ons in the policy. Unfortunately your car met with an accident and the windshield of the car is cracked. A replacement will cost you around Rs. 7500. You raise a claim with the insurance company.
As you have already taken a zero depreciation and a consumable cover, the insurer will not deduct any amount for the same.
Say your engine capacity is more than 1500 CC and so, the compulsory deductible will be Rs 2000.
So, the amount payable = Rs.(7500 - 2000) = Rs. 5500
Here you will just have to pay the compulsory deductible and the rest will be taken care of by the insurer. Now, say that your policy has a NCB of 20%. In this scenario if you think of saving the NCB, you will have to shell out a huge amount from your own pocket. As your contribution to the expenses is only Rs. 2000, it is better to let go of the NCB and let the insurer cover the cost of the repairs
You buy insurance so that the expenses of your car get covered and you do not have to pay from your own pocket. Now, it completely depends on you if you want to raise a claim for a smaller amount or save the No Claim Bonus.
It is important to note that if you have to pay more at the time of claim than what you are receiving from the insurer, then it is better to pay for the expenses yourself. However, sometimes, raising a claim becomes inevitable, when there are huge expenses incurred due to an accident. To raise a claim or not to raise a claim - is always going to be your choice. We hope you make a good one!