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  1. Nishant
  2. Finance, Insurance
  3. Monday, September 30 2019
I got 50000 discount on a car from dealer level, now dealer is reducing this amount from ex-showroom price while calculating insurance amount, by doing this my IDV value sets lower and dealer gets benifit by paying lower amount of insurance.
Is this correct??
And while calculating RTO dealer is considering full ex-showroom price. I am confused...
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Hello,

Generally, Car Insurance is done at 95% of ex-showroom price

However, if discounts are offered on car then even in case of claim towards incident of
> Car Stolen
> Car 100% loss
Insurance company will make maximum payment equivalent to ex-showroom less upfront discount

Do note that Insurance is based on rule where it does not allow one to make a profit from a loss, hence if upfront offers are given then in case of claim the maximum amount payable would be car price less discount (even though if IDV is higher)

But Insurance companies also offer a product which is return to Invoice and cover 100% on road price of car less insurance premium
You may approach dealer for same, will ofcourse cost higher by around rs 5000 against comprehensive insurance and around rs 2000 against zero depreciation insurance in case of a hatchback car costing around rs 5 lakh

Hope should help !!


  1. more than a month ago
  2. Finance, Insurance
  3. # 1
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