Life and General Insurance

 

Car Insurance is to help to protect the losses you might incur while driving on a busy road. The loss could be a result of an accident or theft. The premium amount of your car insurance is decided on the basis of Insured Declared Value or IDV of the vehicle. A slight change in IDV can make a whole lot of difference to the motor insurance premium. If you raise the IDV, the premium rises and if you lower it down, the premium reduces. It is very important for any policyholder to compare various options before going for a car insurance renewal or buying a new policy.

 

Coverage under Car Insurance

Car insurance is of 3 types - Third Party Liability Coverage, Collision Coverage and Comprehensive Coverage.

 

• Third Party Liability Coverage

 

Third Party Car Insurance covers you against any legal liability to a third party resulting when you are at-fault driver. It covers damage/injury caused by you to another person/property. A Third Party Liability cover is legally mandatory in India under the Motor Vehicles Act.

 

• Collision Coverage

 

Collision Coverage protects the insured financially against damage to his/her own car. It pays the insured for damage caused by collision. Damage/loss due to theft or vandalism is not included in collision coverage.

 

• Comprehensive Coverage

 

A comprehensive package car insurance policy is more extensive and preferred by most people. The coverage includes damage or theft of vehicle, third party legal liability and personal accident cover. The policy coverage can be further extended by opting for add-ons like accessories cover, engine protector, zero depreciation cover, medical expenses, etc.

 

No Claim Bonus

 

For every claim free year, the insured is rewarded with a discount on the renewal premium. This discount is No Claim Bonus (NCB). It is cumulative and increases every year. It usually ranges from 10% to 50% and can save substantial amount of money.

 

Key Benefits of Car Insurance

 

• Coverage against loss or damage to the insured vehicle

• Coverage against loss or damage to your vehicle caused by accident, theft, fire, explosion, self ignition, lightning, riots, strikes or act of terrorism, natural calamities

• Coverage against financial liability caused by injury/death of a third party or damage to the property

• Personal accident cover

 

 

Eligibility/Documentation Required for Car Insurance

 

Getting a car insured requires minimal documentation. For a new policy, you must submit the filled up proposal form and copy of the Registration Certificate (RC). For renewals, you will need copy of the RC (Registration Certificate) along with the copy of previous insurance policy.

 

Carefully fill in your complete details. This is an important step and will save you a lot of hassle during claim time.

 

Get Discounts, Save Money, Buy Smart 

 

A smart customer is in a constant hunt for discounts which will reduce the burden on his pocket. If you are one among them then here are a few tips that will help you get discount and save money on premium value of your car insurance.

 

• Voluntary Access

 

Voluntary deductible is the minimum amount that you declare to bear at the time of claim. The higher deductible you opt for, the lower will be your premium. Simply put it means that the financial burden on the insurance provider is less and you will also chip in when an accident or car damage happens.

 

• Anti-theft Discount

 

In case your car is fitted with an ARAI approved anti theft device, your insurer will offer additional discount (2.5% on the OD Premium). This discount is provided for the simple reason that an anti-theft device will make your car less liable to theft.

 

• Privilege Membership

 

Members of the Automobile Association and some Professionals (Defense Personnel, Doctors and Govt. Employees) are entitled to get additional discount on their premium. So, never miss out to mention the same while searching for a quote.