In India, it’s a
mandatory to have an insurance cover if you wish to drive your vehicle on road.
Every vehicle is insured upon a value based on the manufacturer’s price of the
vehicle minus the depreciation costs as per the age of vehicle known as Insured
Declared Value. The third party property damage is covered up to costs of
around 7-8 lakhs for cars and Rs 1 -2 lakh for a
two-wheeler. And there is not such limit on the cover for injury or death of
the third party.
The premium of your vehicle
insurance policy is determined on a number of factors such as make and model,
engine capacity, age, fuel type, the city you stay in, customer’s age,
profession, security elements, and modifications done/accessories added to the
vehicle.
One of the most common
ways to save premium on vehicle insurance would be accumulating your No Claim
Bonus (NCB). NCB’s help you get a discount on your premium if you haven’t made
any claim in the prior years. These discounts will get increased with each
successive year of zero-claim and go up to as high as 50% to 60%. It is
advisable don’t claim for petty dents or a small scratch, instead, accumulate
these bonuses and utilize for higher discount premiums. Another way to reduce
premium would be installing safety devices, having a membership of an
automobile association, choosing higher deductibles, parking in garages or safe
area, etc.
You can always enhance
the protective cover by opting for add-on covers to protect the risks that are not
covered under a standard policy. Some common add-on would be zero depreciation,
No-Claim Bonus, hospitalization, etc. Most vehicle insurance companies offer
the cashless facility if it’s repaired at their authorized garages. Else, you
can repair the car at your preferred garage and then claim the amount from the
insurer. There is some standard exclusion such as normal wear & tear, a
mechanical or electrical breakdown in the car. If the person driving the
vehicle doesn’t have a valid license or driving under the influence of alcohol
or drugs, you will not be able to claim vehicle
insurance. Also, in case you're not happy with the existing
insurance provider you can change the insurer without losing the benefit of any
no-claim bonus that you may be eligible for.
Online purchase lets
you compare varied policies offered by 5-6 or more companies at one time. The
modern technology is highly improved and speedy. All you need is to visit any
of the car insurance comparison websites in India and feed in the requisite
details. You’ll then be able to compare different car insurance policies along
with features, benefits, discounts, payment modes, claim settlement ratio, etc.
under a single umbrella. Make sure you finalize on a plan that offers you the
best features and price (premium) features.
In the manual purchase,
many times due to the hectic work schedule consumer are not able to visit the
company or attend agents on insurance issues.
But once you’re done with the selection process of vehicle insurance online,
you thereby get assured about the policy reaching in your inbox. The company
keeps sending you e-reminders for insurance premium, renewal dates, latest
modifications in terms & policies, government mandates, easy claim
procedures and other facilities in a timely manner.
