Plan N Manage VEHICLE INSURANCE

KNOW YOUR VEHICLE INSURANCE POLICY :

VEHICLE / MOTOR INSURANCE Basics

Types of Motor Insurance:

Broadly there are two types of insurances policies that offer motor insurance cover:

1. Liability Only Policy (Statutory requirement)

2. Package Policy (Liability Only Policy + Damage to owner’s Vehicle usually called O.D Cover

Remember that if you take only a Liability Only Policy, damage to your vehicle will not be covered. Hence, it would be prudent to take a Package Policy which would give a wider cover, including cover for your vehicle.

What Motor Insurance covers:

The damages to the vehicle due to the following perils are usually covered under OD section of the Motor Insurance policy:

a. Fire, Explosion, Self- Ignition, Lightning

b. Burglary/Housebreaking / Theft

c. Riot & Strike

d. Earthquake

e. Flood, Storm, Cyclone, Hurricane, tempest, inundation, hailstorm, frost

f. Accidental external means

g. Malicious Act

h. Terrorism acts

i. While in Transit by Rail/ Road, Inland waterways, Lift, Elevator or Air

j. Land slide / Rock slide

What Motor Insurance excludes:
The following contingencies are usually excluded under the Motor Insurance Policy:

Not having a valid Driving License

• Under Influence of intoxicating liquor/ drugs

• Accident taking place beyond Geographical limits

• While Vehicle is used for unlawful purposes

• Electrical/Mechanical Breakdowns.

Who issues Vehicle Insurance ?

All General Insurance Companies issue Vehicle Insurance .
To get the list of General Insurance companies and visit their website , Click Here


TIPS FOR BUYING VEHICLE INSURANCE .

1. Liability only insurance is mandatory for all vehicles . However it is prudent to cover damages to the vehicle also .

2. Insure for the correct value of the vehicle after depreciation on age of the vehicle .

3. All general insurance companies issue vehicle insurance . Compare premiums from various insurance companies . You can get quotations on line also .

4. Remember to renew before due date . Any lapse may cost additional premium and fresh inspection of the vehicle .

WHICH IS THE BEST INSURANCE COMPANY FOR CAR INSURANCE ?

here are various parameters for choosing a right insurance company which provides the best car insurance .

Some of the criterion to consider before buying a motor insurance is

1. No.of days taken to settle the Claim

2. Availability of Cashless claim facility

3. No. of Cashless garages

4. No. of Tie-Up Vehicle Manufacturers

5. Types of Add-On Covers available

6. After sales service like sending of renewal notice , claim settlement notice etc

7. Discount offered on Official premium

Further some insurance companies offer discount on on-line purchase .

IRDAI WILL PERMIT LONG TERM VEHICLE INSURANCE:

Dated 08.12.2022 : In order to allow the policyholders a wider choice, IRDAI has proposed to permit all General Insurers to offer the long-term Motor Insurance policies as specified hereunder.

1. 3-year in respect of Private cars co-terminus with Motor Third Party Liability cover.

2. 5-year in respect of Two-Wheelers co-terminus with Motor Third Party Liability cover.

c) Long-term Own Damage cover in case of renewal of standalone Own Damage policies such that the long-term Own Damage cover is co-terminus with the Motor Third Party Liability cover.

1. 3-year in respect of erstwhile Indian Motor Tariff Class D (Miscellaneous and Special Types of Vehicles hereafter referred as Class D Vehicles) co-terminus with Motor Third Party Liability cover.

2. Motor add-ons co-terminus with the Motor Own Damage cover in respect of Private Car, Two-wheelers and Class D vehicles

TERMS & CONDITIONS :

1. There shall be a ‘Board-approved policy’ set up by the Insurer containing ects relating to operational matters, accounting (including provisioning requirements) and disclosures for addressing the issue pertaining to cancellation of policy including claw-back of commission.

2. Pricing of long-term policies is to be made based on sound actuarial principles considering all the relevant aspects of rating including claims experience, lower anti-selection, reduced policy administration and acquisition costs given higher renewal rates, long-term discount, expected NCB level by the end of the policy period and applicable government taxes etc. The pricing of add-on and optional covers may likewise consider the cost efficiencies of policy administration.

3. The Insured Declared Value (IDV) (the Sum Insured) agreed to by the policyholder, the Premium and the add-ons applicable for each year shall be mentioned in the policy schedule. The depreciation rate to apply on the IDV agreed shall not exceed 10% per annum during the policy period.

4. The premium for the entire term of the policy coverage shall be collected at the time of sale of insurance. But the premium for the year shall only be recognised as income and the remaining amount shall be treated as "Premium Deposit" or “Advance Premium".

5. All long-term policies would have standard conditions relating to Cancellation/refund of premium as below:

A. Every long-term Motor Own Damage policy shall have a 30-day free-look period from the date of inception of the policy, to enable the policyholder to review the terms and conditions of the policy. The policyholder is entitled to refund of premium on pro-rata basis in the event of exercising the free-look cancellation.

B. The long-term motor Own Damage policy can be cancelled during the tenure of the policy either by a policyholder or by the insurer by giving the notice of cancellation. The refund of premium in such instance would be as under: i. Future Year Premiums - to be refunded in full

C. For the policy year in which policy is cancelled:

1. Where no claims are reported during the year - Refund of pro-rata premium pertaining to the year of cancellation

2. Where claims are reported during the year – No refund of premium

1. GST and other government taxes – refund to the extent permissible from t concerned authorities

For IRDAI Notification , CLICK HERE

ADVERTISEMENTS & SPONSORED ARTICLES : Articles/ Pages in this site contain advertisements and links to various third party sites / blogs as we have found articles therein interesting and useful and we believe reliable . Those links sites and advertisements may contain offer of sales or services of various kinds including financial services . We accept no responsibility for the accuracy , correctness and/or completeness of any information contained therein as we have not independently verified. The links and third party advertisements are governed by the privacy policy of those third party sites / blogs. We do not warrant or guarantee for any services or sales utilized therein . This site expressly disclaims all warranties and conditions of any kind, whether express or implied. However readers are advised to exercise their discretion in utilising / following any advice contained therein or utilizing any services or accepting their sales or any other offers and we do not take any responsibility what so ever.

Sponsored Article
HOW CAN I CHECK USA CAR ?
​
If you want to buy a used car in the USA , you would want to know more about the vehicle you have selected apart from the present condition of the vehicle . You may want to know the purpose for which the car has been used Whether it was used as personal or commercial vehicle, taxis, police car, or was used for the rent ? . You may also want to know its service history , ownership history . You may want to know who were its earlier owners ?

Now you can get a report from the website https://carfaxcheap.com/ and the report will contain information on the car you have chosen to buy . You have to provide a VIN number to get the report .

VIN Number is a special code of 17 digits. This is the vehicle unique identification number. Each letter and digit of the code has its own meaning, which is decoded by our system. With the help of this code, we determine all the necessary information about a particular model. The VIN is an important identifier for the information contained in CARFAX reports. The vehicle identification number is an individual code for a specific vehicle.

After paying for the order, you will receive an email with a report and a payment receipt by e-mail within 5-10 minutes. The report will also be available on the website via a specially generated link.

A Carfax report is a complete history of a particular car, painted on paper. It contains all the information that the buyer should know before making a deal. Information can be found on absolutely any car in America. Each report contains data on accidents, confiscations, and the existence of a lien or disposal right. From there you can find out about the previous owner of the car, the history of the vehicle and much more.
The service is available on Canadian Cars also .

POLLUTION CERTIFICATE NOT TO BE INSISTED FOR SETTLING THE CLAIM : IRDAI

Dated 27.08.2020 : As per Press release dated 26.08.2020 of Insurance Regulatory & Development Authority of India ( IRDAI ) , Insurance companies cannot reject any claim on motor insurance on the ground that the vehicle has no Pollution certificate . . However insurance companies have been advised to obtain pollution certificates at the time of renewals of the insurance