Wednesday 29 August 2018

Car Insurance: A Few Tips

You would already know a little about insurance if you own a car. Actually you should since it’s a legal requirement and can save you a lot of money. Buying insurance can be a bit expensive but when trouble strikes, your finances will be protected.



Basically there are two kinds of Motor Vehicle Insurance:

Motor Policy A (Third Party Risk) the 'Act Only Policy' covers third party damages up to Rs 6000/- only. Risk from fire and theft requires an additional premium.


Motor Policy B (Comprehensive Insurance Policy) protects you from the following eventualities:
Damage due to man-made or natural calamities: Natural calamities include fire, floods, hurricanes, landslides, cyclones or earthquakes. Man-made calamities include, theft, riots, strikes, malicious acts of vandalism or damage occurring in transit via road, rail, waterways or airways.

Personal accident cover: In the event of an accident, it is important that you have personal accident coverage. You may also opt for a personal accident cover for passengers travelling with you, just to be on the safe side.

Third party legal liability: This would cover you for legal liabilities that result in permanent injury/death or damage to property, in the event of a mishap.

The insurance policy is valid for a period of one year. If you do not make a claim during the policy period, you are eligible for a discount, which is adjusted against the renewal premium. In case your policy expires, you can still avail the no claim bonus if you renew the policy within 90 days of its expiry.

To submit the claim you need to provide the following documents to the insurance company:

1.    Vehicle Insurance Policy

2.    Original and a copy of the registration book

3.    Original and a copy of the driving license

4.    FIR in case of an accident involving third party injury or damage

5.    Claim form and the estimated cost of repairs from your workshop

Once the above mentioned documents are submitted, the insurance company will inspect the damaged vehicle and confirm the estimated cost of repairs. Once the surveyor has completed the inspection, the car can be repaired.

The following rates of discount apply:
First year - 20%
Second year - 35%
Third year - 50%
Fourth year onward - 65%


This insurance policy does not cover your vehicle under the following circumstances:

§  Damages arising out of mutiny, nuclear risk or war

§  Depreciation and consequential loss thereof

§  Mechanical/ electrical failures

§  Wear and tear of car tires and tubes

§  Vehicle being used other than the purpose for which it was purchased

§  Damages occurring from driving without a valid license

§  Damages occurring from intoxication by alcohol or drugs

§  Everyday wear and tear

Happy and safe driving!

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