Car Insurance or Motor/Vehicle Insurance is much required to protect vehicle owners from any accidents, theft, damage or financial loss defined as per policy.
Getting a car insurance is easier these days from top insurance companies or car companies like Maruti, Bajaj Allianz, HDFC Ergo, Bharati AXA, United India Insurance, ICICI Lombard etc..
Certain policies also cover both Comprehensive and Third party insurance. Auto Insurance is a contract between you and the insurance company to protect you from unwanted mishaps against the premium paid by you. Insurance companies follow the guidelines as per IRDAI (Insurance Regulatory and Development Authority of India).
Today the Indian automotive industry is one of the largest in the world that has its roots since 1897 when the first car plied on Indian roads. The first Indian who owned a car in 1901 was Mr. Jamshedji Tata. The first launch was in 1942 by Hindustan Motors, competitor Premier in 1944 and Mahindra & Mahindra in 1945 respectively which is termed as a ‘landmark’ decade in the automobile history of India. Through 1930s cars were imported in small numbers in India.
The wide use of cars began in urban areas slowly after the First World War. There was no form insurance concept in the world during that period. The United Kingdom through the Road Traffic Act 1930 has introduced a compulsory car insurance scheme. Here the vehicle along with the driver has to be compulsorily insured.
The concept of motor insurance coverage includes a protection cover for the damage caused to the vehicle, theft etc. against the policy taken by the vehicle owners. Motor Insurance is mandatory in India. The premium may differ depending on the vehicle whether it’s a a two-wheeler or a four-wheeler.
The policy value also is based on the vehicle’s Insured Declared Value (IDV) declared by the showroom at the time of purchase of your new car.
The IDV keeps changing as the vehicle value depreciates year after year.
IDV = (Manufacturer’s listing price-Depreciation) + (Accessories not included in the listed price-Depreciation).
Here are few benefits of opting for a vehicle insurance policy by the owner.
A third-party insurance is a type of insurance where it covers the damages/injuries caused by your car to a third person, vehicle or property. A comprehensive insurance is a combination of third-party insurance along with self-damage coverage.
The insurance will be offered by the showroom itself from where the car is purchased to its owner. Also, there are different options available in the market to compare and decide on a policy that suits to the requirement.
In case of second hand or pre-owned cars, a vehicle inspection would be done after which the insurance vendors will proceed further issuing the insurance policy for the vehicle.
Let us see what all a Motor Insurance policy provides as part of the cover:
Here is a check-list of the areas which are covered by a motor insurance policy and those which are not in the policy purview.
|Covered Under Insurance||Not Covered Under Insurance|
|Damage/loss through natural or man-made calamities||Intentional damage/loss, general wear & tear|
|Accident Coverage||Driving under the drug influence, alcohol etc|
|Third Party Legal Liability Cover||Damage/loss occurred due to war|
|Insured person driving the car||Driving someone else’s car|
|Protection in case of any unfortunate event/disability to the driver||Uninsured driving the car|
The car insurance claim is a process where the insurance company gets a claim request from the Insured towards the compensation for the loss and damage after an event. The insured may even ask the insurance company to represent in case of any unintentional damages caused to the third party.
There are 2 ways of making a claim by the Insured:
Car Insurance Cashless Claims is where there would be no need for the Insured to make any payment at the network car service centers of the Insurance provider. Once the damages are covered in the policy, the Insurer makes claim settlement with the car workshop authority.
In Reimbursement Claims, the Insured will be paying for the damages/loss caused to the vehicle towards the repair at any of the workshops. The Insured will submit all the bills and receipts related to the repair to the insurance provider for reimbursement.
It advisable to go through all the details before opting for claims from any insurance provider.
The sooner the better concept has to be followed in claim process without any delays. As per IRDAI (Insurance Regulatory and Development Authority of India), the Insurer can’t reject any claim for the delays made by Insured.
Already the Insured would have gone through due to accident and in addition the stress is to get the claim process run smoothly. Post-accident, the vehicle will be moved to car service center and the communication starts with the Insurance provider. Let’s see on the important points to note while filling the claim form.
IRDAI often drags the Insurance companies through notices for not abiding to the standard and laws while doing claim settlement with the claimants.
The Insurance companies send a typical response that they have negotiated with the claimant and obtained consent with an intention to provide benefit to the customer. There are instances where IRDAI even penalizes the Insurance companies for not following the legality in such negotiation and getting consent letter from Insured is not the complete solution.
IRDAI acts strictly to ensure that there is transparency while following relevant guidelines at the time of making fair claims with the claimants.
By now we understood the vital role of vehicle insurance along with the protection to the owner in case of any unforeseen situation.
One can compare the best car insurance quotes and customize as per requirement out of various types of vehicle insurance policies provided for all road vehicles by the insurance companies. To name a few are Bajaj Allianz, HDFC Ergo, Bharati AXA, United India Insurance, ICICI Lombard etc. Refer to the policy document or the contract to know what costs are covered in the policy offered to you against the premium paid on an annual basis. Accordingly, you can customize and choose various coverage options that is right for you.
A little hard-work will help you to secure your car or a two wheeler from any unwanted mishaps and provide financial protection.
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