Must know details for your Bike/Car Insurance

Thinking of buying your first automobile? Well, then car insurance may simply be the final thing on your mind. But it is important. The Indian Motors Act makes it mandatory for all automobile buyers to get their vehicles insured. Now as to why buying car insurance is so important for you. Well, if your vehicle is insured, the car insurance will come to your help in the case of accidental damages. The insurance firm whose auto-insurance policy you’ve got availed will step up to pay for the damages to your vehicle as well as repair costs. You’ll be paying the company annual premiums in fact you’ll receive the insurance benefit, but it helps in mitigating the expenditure you would have to face if you had an uninsured vehicle. In short, you pay the company to come to you whenever your vehicle is involved in an accident, thus lessening your financial burden. Here are few things that you should know for your car/bike insurance.

  • You as a first time insurance vendee ought to recognize all the details of the insurance policies within the market. Find the right source online to view and compare policies basis of several parameters like low parameters like low premium cost, coverage, additional benefits, claim settlement ratio etc. Use the web car insurance calculator to search your policy most easily and quickly to match your demand to the policy you need.
  • There are few basic features that one should look for in a car insurance policy. These embody characteristics like insurance, premium, insured value and riders.

Car insurance policies are often generally classified into 2 types:

  • Basic/ Third Party Car Insurance Policy
  • Comprehensive car insurance policy

For example, a basic car insurance policy such as a third party insurance may not provide any benefit at all to the policy holder should the need for a claim arise. A third part car insurance policy holder should the need for a claim arise. A third party insurance policy solely covers damages to others in case the policy holder meets with a car accident.

On the other side, a car insurance policy may not only provide cover to the victim in case of an accident, but also provide cover for the owner of the vehicle. Such policies, known as comprehensive policies, provide more protection – to the policy holder as well as others involved in the accident – and therefore cost more.

Car or motor insurance policies may also be distinguished on the idea of features such as liability coverage, collision coverage, medical payment coverage and personal injury coverage.

  • Insured value, also known as insured declared value (IDV), is the total value insured which a customer can claim. Insurance consultants advise on selecting a car insurance policy that is both appropriate as per one’s needs and nevertheless cheap. Making a quick decision based on what the no depository financial institution is providing, without assessing your own needs should be avoided, they say.
    IDV or insured value is the total sum that the insurer is liable to pay in case of eligible claims. For example, a car insurance policy may offer low premium but, at the same time, a low insured value. You should do a firm assessment of your automobile insurance desires – think about various riders and types of covers enclosed within the policy – along with the premium payable and the insured worth to search out best fit, before buying a policy, say experts.
  • Many insurers now a day’s provide special facilities called add on covers. Probably the most commonly recommended add-on is zero depreciation, this cover entitles you to claim the full cost of replacing car parts damaged in accidents without having to pay from your pocket. Next comes engine protect which is considered particularly relevant for owners of brand new high-end cars and is normally available for cars that are up to three years of age. Essentially, Engine Protect or Machinery Breakdown cover compensates for even those engine-related repairs that are not related to accidents. It is useful and worth purchasing because the cost of repairs in case of damage to engine can be significantly high. Buying a Return to invoice cover will ensure that in case of total loss or theft of your car, you will get the original invoice value, including registration charges and road tax paid, of the car and not just the insured declared value (IDV).
  • Deductible is the portion of damages payable by the car insurance policy holder. A higher deductible means the insurer will pay the remainder amount of damages in case of an accident. This also leads to a lower premium.
  • No Claim Bonus is the benefit that a car insurance policy holder gets, generally in the form of discount in the annual premium payable, for not filing any claims during a year. Before buying a automobile insurance policy, one must learn about the NCB in order to be able to make the best decision should the need for a claim arise in a year. For example, a damage that would cost less than the no claim bonus can be paid by the insurance policy holder out of his or her own pocket, therefore making most of this feature.

Many insurers now a day’s provide car insurance policies through on-line as well as offline modes. Meanwhile, before buying or renewing a automobile insurance policy on-line, one should perceive of these aspects and compare them with together with his or her own needs to require a decision.


Author : Mr. Mahesh Shetkar, Business development and Strategy planning at DOERS


Publish : The Insurance Times, February, 2019