Car insurance is a type of insurance policy that effectively takes care of expenses arising from unfortunate events, such as an accident, theft, and any third-party liability. Car insurance is the best way you can protect yourself, your car or a third party. Here are 5 important frequently asked questions answered for your convenience:
1) What are the available policies for covering a vehicle?
Based on the risks covered, motor insurance is divided into 2 basic types:
Third Party Insurance – this type covers third party liability for bodily injury, death, and property damage. Personal accident cover for owner/driver is also included.
Comprehensive Insurance – this type covers loss or damage (caused due to a fault of the owner/driver) to the insured vehicle in addition to the third-party cover. Comprehensive policy covers loss or damage to the insured vehicle and its accessories due to:
- Fire, explosion, self-ignition or lightning
- Burglary, housebreaking or theft
- Riot and strike
- Malicious act
- Terrorist act
- Earthquake (fire and shock) damage
- Flood, typhoon, hurricane, storm, tempest, inundation, cyclone and hailstorm
- Accidental external means
- Whilst in transit by road, inland waterway, lift, elevator or air
- By landslide/rockslide
2) When should I renew the insurance for my vehicle & why?
It is strongly recommended to renew your insurance before the expiry of the existing insurance. This keeps your vehicle insured against the risks without any interval and takes care of any loss within the ambit of the policy you own. This also retains the No Claim Bonus — the hard-earned discount on the subsequent premium for claim-free year(s). Moreover, you are absolved from the breach of the pertaining law.
3) What are the important things I should bear in mind while insuring my vehicle?
- 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 the claim. Incomplete or incorrect information may result in the denial of the policy. Therefore, never leave it to any other person to fill it up.
- Ensure that your details along with the vehicle’s details are correctly recorded in the policy schedule. Make sure that every digit of the vehicle registration number; engine and chassis numbers, etc. are fully and correctly entered. Any error should be immediately rectified; otherwise it would be problematic while you claim the policy.
- If there are any changes in the policy, they will be communicated via an endorsement by the office. Please check the endorsement carefully and consider its applicability.
- Read policy terms and conditions, particularly the exclusions, etc. very carefully. They are important from a claim point of view.
- Remember that the registration and insurance of the vehicle should always be in the same name with the same address. Otherwise the claim is not payable.
4) What should I do in case of an accident/theft of the vehicle?
Please inform the policy issuing office/ customer care centre (if available) immediately in writing/ call to call centre to register a claim. Next, the insurance company will depute a surveyor and/ or an investigator. An immediate report to the police is also mandatory in case the vehicle is stolen or if third party injury/ death/ property damage is involved. Delay in informing the insurance company and the police (as or when required) will prejudice your claim and the company may deny the liability. Please read the conditions in the policy in this regard.
5) What are documents required at the time of claim?
- Copy of the claims intimation (submitted to the insurer)
- Original copy of the exiting policy
- Previous insurance policy copies
- Premium receipt
- Claims form (duly filled)
- Original Driving license
- Badge for commercial driver
- Original registration certificate of the vehicle
- Estimate of repairs from repairer and stamped receipt
- Bill and cash memo of repairer
- Verification of road tax
- Policy Panchanama/ FIR
Finally, you will require a fitness certificate and any other documents deemed appropriate for the situation by the company.