Motor Insurance – FAQ’s

Q. Which motor insurance cover should I buy? Should I only take a comprehensive insurance or liability policy?
A. Third party liability insurance is mandatory for all vehicles running on public roads in India. It also includes liability for injury and damage to others, for which you are responsible. Apart from this, it is prudent to cover the loss of cover or vehicle itself by the comprehensive / package policy, which also covers the ‘liability’ of the insured vehicle along with ‘self-injury / onage’. The only liability (Liability ONLY) cover is also called the Act Only Cover.

Q. How is premium determined?
A. The premiums you pay will determine many factors. Different insurance companies charge different premiums for the same coverage for the cover of loss due to themselves. Carefully purchase, it would be useful to compute the quotas of three or more companies for comparison. Check the websites of various insurance companies, it will help you compare premiums. Do not forget to compare the deductible items / deductibles, coverage and IDVs, because the premium of an insurance company may be reduced but the deductible may be high, the coverage may be lower and the IDV may also decrease, which is at the time of settlement of the claim Will have an adverse effect.

Be prepared to give information to your agent about the following items (items) which are commonly used to determine your premium: vehicle registration details, chassis number, vehicle category, cubic capacity, Seating capacity, etc. (In fact, all relevant information is in RC book / card and a copy of that can be submitted) Tax payment details, fitness proof Letter, information about the driver – age, gender, eligibility, license validity, previous insurance history, if any.

For self-inflicted coverage coverage, personal insurers can be duly evaluated themselves after filing the rates with the Insurance Regulatory and Development Authority. It is determined on the following factors – the age of the vehicle; Discounts / Landings – Appropriate bonus / loading / discounts are kept in mind while computing the premium with past claims experience. IDV (Assured Declare Value / Assured Declared Value).

Third party liability premium rates are decided by the IRDA.

Inspection of the vehicle will be necessary to inspect the vehicle and it will have to bear additional charges.
Q. Which coverage limit will meet my needs?
A. The sum insured for the vehicle is called ” declared value / insured declarated value ” and it reflects the current market value of the vehicle. Under the liability insurance, third party liability insurance is covered. There is unlimited coverage for third party injuries and the loss of third party property is covered up to an amount of Rs. 7,50,000.

The coverage for loss of property of third party to the insured is Rs. There is an option to limit up to 6,000, while “only liability” premium will be reduced.
Category: Motor Insurance
Q. What is the term of the policy?
A. A motor policy is usually valid for a period of one year and it is necessary to renew before the due date. Pay premiums on time. No insurance company provides a grace period for paying premium. If there is a single day defaults in the policy, inspection of the vehicle is necessary. In addition, if a laps / defaults are allowed for more than 90 days in a comprehensive policy then the earned profit of NCB (No Claim Bonus) is also eliminated.

Q. “No Claim Bonus” NCB What is it?
A. No Claim Bonus (NCB) is an insured gain earned without making any claims during the previous policy period. According to the existing rules in India, it becomes self-damaged (On Damage) damage premium (and not on liability premium) from 20 percent to max 50 percent.

However, if a claim is filed, no claim bonus will expire in the next policy term.

NCB is given to the insured, not the insured vehicle. Therefore, on the transfer of the vehicle, the insurance policy can be transferred to the name of the new owner but not the NCB. The new owner will have to pay the difference to NBC for the outstanding policy term. The actual owner, however, could use the NCB on the new vehicle he bought.
Q. Will I have a no claim bonus if I want to change my insurance company?
A. Yes, even if the insurer changes on renewal, they can also take advantage of the NCB facility. You will have to submit the renewal notice received from the present insurance company as proof of earned NBC. Alternatively, your original policy can present the ending policy as a proof and tell you that you have not filed any claim on the ending policy. For this, the renewal notice can be presented as evidence or the letter of confirmation of NBC eligibility from the former insurance company.

Q. Will there be a discount for reducing my premium?
A. In addition to NCB, additional exemptions are available under the following: – Self-loss premium for membership of the Automobile Association of India, Vintage Cars (private cars certified by Vintage and Classic Car Club of India), Automobile Research A