|
Home
CAR
INSURANCE
Car Insurance
Legally, no motor vehicle is allowed to be driven on the
road without valid insurance. Hence, it is obligatory on
your part to get your vehicle insured. There are two
types of motor vehicle insurances - "Act Only Risk -
Motor Policy A" (also known as third party risk) and
"Motor Policy B" (also known as comprehensive insurance
policy). Although legal requirement is met by Motor
Policy A, it would be sensible on your part to go for
comprehensive insurance policy.
Motor Policy 'A' (Act Policy)
Policy A covers risks required to be covered under the
Motor Vehicles Act. It is mandatory that every car owner
be covered against Act Risks under Section 146 of Motor
Vehicles Act 1988.
The scope of cover is to pay compensation for death of
or bodily injuries to third parties and damage to the
property of third parties. While the Insured is treated
as the first party and the Insurance Company second
party, all others would be third parties.
For private vehicles and cars, the 'Act Only Policy'
covers third party property damages only upto Rs.
6000/-. Fire and theft risk can be covered by paying
additional premium.
Comprehensive Insurance Policy
A comprehensive insurance policy includes:
* Third party cover.
* Loss / Damage to vehicle as a result of an accident,
fire or theft.
* Risks against floods, earthquake, riots and strikes.
* Accessories like music system, air-conditioner, etc.
can also be covered by paying additional premium.
* Risk of loss/damage while in transit by road, rail,
watercraft, air, elevator, etc.
The insurance policy is valid for one year. It becomes
effective from the moment the payment of premium is
received by the insurance company, and ends at midnight,
exactly a year later.
The insurance policy can be obtained through an
insurance agent or a development officer of the
insurance company. Usually, the new car dealer is also
an insurance agent. The insurance premium depends on the
car's value, the engine power, its seating capacity, and
the value of other accessories like the air-conditioner.
Renewal of Insurance Policy
The insurance policy has to be renewed within the period
of validity. Any delay in the renewal of the policy
renders the policy invalid and you will not be able to
avail any benefit of the policy. Also, driving without a
valid insurance policy is a legal offence.
No Claim Bonus
You are eligible for a discount in the premium of a
comprehensive insurance policy at the following rate:
* 20% for the 1st year.
* 35% for the 2nd year.
* 50% for the 3rd year.
* 65% for the 4th year and afterwards
The value of the discount depends upon the insurance
claims you have made in that particular year.
This discount is adjusted against renewal premium. You
can avail the no claim bonus when you renew your policy.
In case your policy expires, you can still avail the no
claim bonus if you renew the policy within 90 days of
its expiry.
Incase you are buying a new car you can transfer the no
claim bonus from the policy of your old car to the new
one.
You need to intimate the insurance company in case you
sell your car and you are eligible for the no claim
bonus. The no claim bonus is adjusted against the
premium of a new car, if the purchase is made within a
period of three years.
Transfer of Insurance Policy
In case you purchase a used car, you can transfer the
existing insurance policy to your name by informing the
insurance company within 14 days from purchasing the
car.
Insurance Claim Procedure
In case of an accident claim, following documents are to
be submitted to the insurance company.
* Proof of insurance-Policy
* Original and a Copy of Registration Book.
* Original and a Copy of Motor Driving Licence of the
person driving the vehicle at the material time.
* FIR, in case of accident involving Third Party Injury
or Damage.
* Claim form along with the original estimate of repairs
obtained from the workshop.
On submission of these documents the insurance company
appoints a surveyor, who inspects the damaged car and
verifies the authenticity of the estimate of repairs.
The car can be repaired only after the insurance
surveyor has inspected it.
Submit the final bill for damaged parts that have been
replaced and the stamped receipt for payment made to the
workshop. Once the car has been repaired, you need to
make the payment as per the final estimate and submit
the final estimate and stamped receipt to the insurance
company for settlement of the claim. The repaired car is
surveyed again by an insurance surveyor and only then
you can take delivery of your car.
In case your car is stolen, you need to inform about the
theft to the nearest police station and your insurance
company immediately. You also have to intimate about the
stolen car and missing documents to the concerned
registering authority where the car was initially
registered. Obtain a duplicate RC Book from the RTO
office immediately In case of theft, the procedure for
the insurance claim is similar to the accident claim,
however, in case of theft the settlement of insurance
claim takes longer as the RTO and the police is given a
reasonable period of time to recover the stolen vehicle.
|