About Car / Auto Insurance Policy
In today’s date, most of us tend to use a private vehicle. Using a private vehicle usually exposes us to certain unforeseen risks such as accident or even theft for that matter. Since a good amount of finance is directed towards buying a car, it becomes essential to keep the same protected from such startling situations.
This is where the motor insurance policy comes into picture. The motor insurance policy happens to be one of the hot selling policies of late. Based upon the vehicle that you are using you are charged differential rates by the insurance service providers. The best part about motor insurance policies is that in this particular area you tend to get access to a wide array of innovative policies that further offer you the convenience of choosing that particular policy, which happens to best suit your individual as well as your vehicle’s needs and requirements at large.
When you decide to buy any insurance policy it is crucial that you take into consideration various pros and cons of the same so that you are assured of your final decision. The scenario is no different in the case of a motor insurance policy. Before you zero down your mind on any particular policy it is vital for you to check out certain parameters before hand. In this article, we will be throwing light on the areas that need to be given attention before buying a motor insurance policy.
First and foremost, before you decide to buy a motor insurance policy you need to list down different unpredictable conditions that your vehicle as well as individuals travelling in the same are likely to encounter. Though most of the car owners tend to avoid the negative conditions related to their vehicle that are likely to surface in the future, it is essential for them to realize that if god forbid any such situation occurs in the coming years then in that case it is essential for them to recover the complete loss.
If they fail to do so then, that can end up becoming their biggest regret. This is why it is mandatory for the car owners to realize what areas he or she would like to get insured before buying any motor insurance policy at large. Similarly, all the individuals who happen to use an uncommon car model it is vital for them to go out of their way and collect crucial information regarding the same. In addition, they can even consider taking expert help so as to make sure that they end up buying just the right motor insurance policy.
Apart from this, you also need to take into consideration the laws of the country that you are residing in before buying a motor insurance plan. In most of the countries, every vehicle needs to be insured up to a certain minimum level as per the law. You need to be well acquainted with the same and thus should buy the insurance cover in such a manner that you don’t end up going against the law. Yet again, you need to consider the frequency with which you will be using your vehicle. For example, if you would be using your car as a cab or taxi then, you will required to opt for an additional cover.
Last but not the least, you even need to focus your attention on the reputation of the insurance service provider from whom you plan to buy your motor insurance policy. Thus, all you people who are looking forward to buying a motor insurance policy can consider glancing through the above article in order to make a well-informed choice.
Type of Vehicles/ Auto/ Car Covered
* Motor Cycle/Scooter
* Private Car / Commercial Vehicles
a) Goods carrying vehicles
b) Passenger carrying Vehicles
c) Miscellaneous and special type of vehicle.
There are two types of Covers Available.
a) Third Party Policy ( Act Only Policy )
Act only policy, commonly referred to as third party insurance as it covers damage or harm caused to third parties other than the insured. It is compulsory to take this cover.
b) Comprehensive Policy.
Act only & Own Damage (loss or damage to the vehicle), is commonly referred to as comprehensive insurance.
Risks covered by the Policy
Death of or bodily injury to any person
The insurance policy protects the motor vehicle from loss or damage.
By fire, lightning, self-ignition, explosion, burglary, housebreaking or theft.
Riot or strike.
Flood, earthquake, cyclone or inundation.
Transit by road, air, elevators or lifts.
Liability for third party's injury or death, third party property and towards the paid driver too.
Loss or damage to electrical/ electronic accessories, personal accident cover for the driver and passengers is also available after paying additional premium.
Is it compulsory to buy Auto Insurance in India ?
According to Law it is compulsory to take a Third Party Insurance Policy. Buying an comprehensive insurance policy is optional but it is advisable to take a comprehensive auto insurance policy for individuals.
Who Can Insure?
Individuals and corporate owners of the vehicle can be insured.
What else can be Insured?
On payment of additional premium the following can be covered :
Loss of or damage to electrical/ electronic accessories can be covered
This policy can be extended to cover Liability to Paid driver, other employees.
Personal Accident cover can be given to passengers of the car on a named or unnamed basis.
You should truthfully declare all the facts about yourself and your motor vehicle to the insurer.
You should maintain the vehicle in efficient condition and in case of accident/ breakdown, do not leave your vehicle unattended.
More importantly, you should not drive the vehicle without getting necessary repairs done.
What is No claim Bonus/ Malus ?
No claim Bonus is the discount which is given on the renewal of the policy in case there is no claim in the earlier year. This discount is given only on the own damage component of the premium.
Malus is the loading on the own damage premium if there is a claim in the previous year.
Every Policy has some exclusions and differ from company to company. Please read the fine print or terms and conditions before buying the policy.
** Discounts are based on the age of car, make, model, region and driving history of the vehicle. It varies from company to company. Please talk to an expert advisor to check which company if offering the best discounts for your vehicle.