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Saturda , December 17th, 2011, 1:21:51 PM Home (.) Abo (abo - .php) Calc la o (calc la o .php) A icle (#) P od c La nch (p od c la nch.php) Con ac U (con ac .php) HNI/NRI (hni-n i.php)

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Wha i ca in

ance?

Car/motor insurance is an insurance cover purchased by vehicle owners against vehicular damages arising from accidents/collisions. As per the Motor vehicle Act, every motor vehicle plying on the Indian road has to be insured, failing which penal actions may be taken against the owner/driver. Hence, it is illegal to drive a car without insurance. As motor insurance is governed by Tariff Advisory Committee, there is hardly any difference in rates charged by insurance companies.

Ri k co e ed nde ca in

ance:

(1) (2) (3) (4) (5)

The insurance cover provides protection against Natural calamities like fire, explosion, self-ignition, lightning,

floods, etc. Man-made calamities like burglary, theft, riots, strikes, etc. Personal accident cover for the individual driver of the vehicle Third party liability due to accidental damages resulting in injury/death And other add-ons like electrical & non-electrical accessories, bi-fuel kit comprising of LPG/CNG systems.

As per the Motor vehicle Act, third part insurance is mandatory for all vehicles.

P emi m

ma

ed of ca in

ance:

The insurance premium depends on factors like the car model, its cubic capacity, its age, value of the vehicle, the city of registration, fuel options, owner s profile, safety devices installed, accessories and even the car colour among others. All vehicles are insured at fixed value called Insured s Declared Value (IDV). IDV is based on the manufacture s listed selling price of the vehicle after deducting depreciation of every as per Indian Motor Tariff.

Tip fo

elec ing ca in

ance:

As rates are almost same among insurance companies, one should look for services provided. Cashless claim settlement should a key factor for your selection. Under this service, if you face any kind of accident, you should go the authorized garage after informing insurer. In the garage, you need to pay for replacements and insurer will pay the bill. Further, the duration of settlement reflects the company s quick customer services. Shortest claim settlement time means the insurer has good track record of quick settlement. Cashless claim system Shortest claim settlement time

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Saving 2 Profit Be an Informed Investor

Poin o emembe : (1) In case of an accident, the insured can avail of the cashless facility provided by his/her insurance provider at any of its garage network across the region. If the repair is carried out outside the garage network, then the claim amount can be reimbursed to the claimant. (2) A discount on renewal No Claim Bonus is offered if the insured does not make any claims in the previous year. (3) In case of transfer of vehicles, then the No Claim Bonus can be transferred to the new car from the old one. (4) If the premium is not paid on time, then any damage to the vehicle during this period will not the insurer. (5) The policy period cannot be more than 12 months. If required for more than 12 months, an additional premium alongwith an application for extension shall be submitted. be a liable to

Claim p oced

e fo ca in

ance:

If the vehicle meets with an accident then the following steps may be followed (a) Inform the insurance provider (b) Report the matter to the police (c) Get a repair estimate from a reputed workshop/service station (d) Submit the estimate to the insurance provider (e) If approved by the surveyor of the company who assesses the damage, you may go ahead with the repair work of the vehicle (f) The repair bill to be submitted to the service provider who shall reimburse the same.

Wha no co e ed nde ca in

ance:

Depreciation Intoxicated driving General wear & tear Deliberate accidental loss Loss/damage due to war, mutiny, or nuclear risk Any other clause as specified in the contract

(Note: The article is written b Bharat Rao, a member of saving2profit research team.) Upada ed on March 17,2011, 08:37:48 PM

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