Every Thing You Need To Know About Car Insurance.

Car insurance is not something we give too much thought to. Until the time the car meets with an accident and you have to make a claim. That is the time you discover, to your horror, that though you have a valid car insurance, the compensation you are getting does not completely cover your losses. Just spending a little bit of time understanding, and finding out about different car insurances can mean the difference between paying out of your pocket and being completely covered.

MOTOR INSURANCE IS COMPULSORY.

Under the Motor Vehicles Act, all motor vehicle owners must have third party insurance cover. The law in the country makes it compulsory for you to insure your motor vehicle. The compulsory nature of the law protects you against third party liability. While insuring against third party liability is important, It also makes good sense to buy a comprehensive cover to give you all round protection.

THERE ARE TWO TYPES OF MOTOR INSURANCE POLICIES

Liability Only Policy: Covering the liabilities towards third parties only as per Motor Vehicles Act. This insurance is mandatory for a vehicle plying in public place, as per Motor Vehicles Act.

Package Policy: In addition to the above. the loss or damage to the vehicle insured, by specified perils. is also covered subject to the value declared and other terms and conditions in the policy.

YOU CAN BRING DOWN YOUR PREMIUM WITH 'NO-CLAIM BONUS'.

No-claim bonus (NCB) is a special discount given for every claim-free year. People who make frequent claims not only lose this bonus but also have to pay higher premiums. Remember, Your NCB is transferable in case you change your insurance company. In case, You are changing your insurance company and have accrued some NCB from the previous insurer, Then you get the benefits for your NCB with new company too if you renew your policy before expiry or within 90 days of expiry of policy. You don’t lose out on the discount too. The NCB discount rate remains the same, Provided you show evidence that you are entitled to NCB from your previous insurance company. Evidence can be in the form of a renewal notice or a letter confirming the NCB entitlement from the previous insurer.

 YOU MUST RECEIVE YOUR CERTIFICATE OF INSURANCE WITHIN 60 DAYS.

After you have given a duly filled in proposal form and paid the premium in full, you must get the insurance policy and certificate of insurance or in the interim, a cover note is issued by the Insurer before the issuance of a policy. A cover note is valid for a period of 60 days from the date of issue of the cover note and the Insurer shall issue the Certificate of Insurance before the cover note expires.

 

RENEW BEFORE EXPIRY DATE OR LOSE OUT.

It is strongly recommended to renew your insurance before expiry of the existing insurance. This keeps your vehicle insured against the risks without any break and takes care of any loss within the ambit of the policy you have.

This also retains the No Claim Bonus - the hard-earned discount in premium for claim-free years. Moreover, you are also not worried about the breach of law.

If the policy has already expired, a fresh insurance can be obtained. Since a break in insurance has occurred, the vehicle will be physically inspected by a company official or an authorized representative or agency. The entitlement of No Claim Bonus will be as per rules.

 INSURANCE IS TRANSFERABLE.

If you are selling your vehicle, you can transfer your insurance to the purchaser of your subject to compliance of tariff provisions. Insurance can be transferred to the buyer of the vehicle, Provided the seller gives in writing to the insurance company.

A fresh proposal form needs to be filled in. There is a nominal fee charged for transfer of insurance.

 REGISTRATION AND INSURANCE SHOULD ALWAYS BE IN THE SAME NAME AND ADDRESS.

 When you are buying a used vehicle, make sure that not only is the vehicle transferred to your name but also the insurance. Remember, registration and insurance of the vehicle should always be in the same name. If insurance is not being transferred by the previous owner, please ensure that you insure your vehicle.

 INSTALLING AN UNAUTHORIZED CNG OR LPG KIT CAN INVALIDATE YOUR INSURANCE.

 If your vehicle has or you are installing CNG/LPG kit in your vehicle or if there is any other change in the structure/ usage of the vehicle, it should be permitted by the RTO. This means, it should be registered with the RTO and also entered by them in your RC book. Then, you have to approach the insurance company and declare it to them with a copy of the RC book. Additional premium is payable for the vehicle with LPG/CNG kit and they will pass an endorsement for the same.

 ACT IMMEDIATELY IN CASE OF AN ACCIDENT OR IF VEHICLE IS STOLEN.

 An immediate report to the police is also mandatory in case the vehicle is stolen or when third party injury/death/property damage is involved. Also inform the policy issuing office for registering a claim and deputing a surveyor and/or an investigator. Delay in informing the company and the police (wherever required) may prejudice your claim and the Company may deny the liability. Please read the conditions in the policy in this regard.

 KNOW THE DOCUMENTS AND FORMALITIES REQUIRED FOR PROCESSING THE CLAIM.

The documents and formalities required for processing and settlement of the claim will depend upon the type of vehicle and nature of loss. Please contact the office concerned for guidance. The general checklist is as follows, however contact respective insurance companies for exact details:Apart from a completely filled claim for insurance, companies require a copy of Maharashtra State Certificate of Registration Form 23A.

 ENSURE YOU FILL IN ALL DETAILS CORRECTLY OR YOUR CLAIM WILL BE REJECTED.

 Fill up the proposal form yourself, answering all the questions correctly, and sign it. This plays a vital role in deciding the premium and the admissibility of claim. Incomplete or incorrect information may result in denying the claim to you. Therefore, never leave it to any other person to fill it up.

Ensure that your vehicle details are correctly recorded in the policy schedule. Make sure that every digit of vehicle registration number, engine and chassis numbers etc. are fully and correctly entered. Any error should be immediately got corrected as otherwise it would create trouble at the time of claim. If there are any changes in the policy, it will be done by an Endorsement by the office. Please check the correctness of the endorsement. Read policy terms, conditions, particularly the exclusions etc. very carefully. They are important from the claim point of view.

Remember, registration and insurance of the vehicle should always be in the same name. Otherwise the own damage claim is not payable.

 SOME COMPANIES ACCEPT ONLINE PAYMENT OF PREMIUM.

 Depending on the company, you can pay your premium online. This facility makes it easier and more convenient for you to enjoy a smooth drive with your car insurance.