What is my risk coverage in third party liability?
Third party liability does not cover you or damages caused to your vehicle. It only provides coverage for the damage caused to the third party vehicle, damage to property and medical costs for the person affected.
What are the exclusions in a comprehensive motor insurance policy?
The major exclusions of a comprehensive motor insurance are:
- Accident taking place beyond geographical limits i.e. outside India
- Driving under the influence of drugs and alcohol
- Electrical / mechanical breakdowns
- Vehicle used for unlawful purposes
- Loss /Damage attributable to War /Mutiny / Nuclear risks
What are the benefits of opting for different add-on covers?
A comprehensive motor insurance policy can be enhanced by opting Add-ons. Some of the common Add-ons and their benefits are:
- Zero Depreciation/ Depreciation Waiver Cover : Maintains the value of your vehicle thereby allowing you to maximize claim amount without worrying about depreciation.
- No Claim Bonus Cover (NCB) : Allows NCB even after making a claim in the previous year.
- Personal Accident Cover : Covers you or your driver in case of injury or death due to accident.
- Engine and Electronic Circuit Cover : Expenses towards engine and the inner circuits are covered.
- Daily Cash Allowance : Your insurer will pay you a certain allowance for the days while your vehicle is being repaired in a network garage, or provide a standby vehicle
- Roadside Assistance : This cover comes in extremely handy if your vehicle breaks-down and you need assistance like reaching out to a mechanic, arranging a tow-truck, helping in case of lost keys or medical aid if an accident occurred.
- Key Replacement : Covers the expenses towards replacing a lost key.
- Return to Invoice : In case of total damage within the 1st year of your vehicle, it covers you for the entire value of the vehicle.
- Loss of Personal Belongings : If due to theft or burglary your personal belongings and valuables in your locked car are lost, you can claim for their value.
How is my motor insurance premium calculated?
Car insurance premium is calculated based on the following factors:
- Vehicle Model and Manufacturer
- State/ Region where the vehicle is registered
- Age of the vehicle
- Insured’s Declared Value (IDV)
- Availability of No Claim Bonus (NCB)
- Add-on covers opted
Do I receive any discount on the premiums if I install anti-theft alarm and locking system?
Yes, installation of anti-theft or alarm locking systems are encouraged by insurance companies and makes you eligible for discounts.
In case you install an anti-theft device mid-policy, you will be eligible for discount as per the remaining policy term, proportionately.
You would be also eligible for the discount if you are a member of the Automobile Association of India.
Insured Declared Value (IDV) is the fixed maximum amount the insurer will reimburse in case of damages or loss of the vehicle. IDV is calculated as the current market value of the vehicle, as listed by the manufacturer and installed accessories, if any, less the depreciation value of the vehicle.
What is the procedure for motor insurance claim?
Several untoward incidents can lead to a motor insurance claim. In case you need to file one, follow these general instructions:
- If your vehicle has been involved in an accident:
- Note the number of the other vehicle/s
- Note the contact details of the witnesses (if any)
- Contact your insurance provider on their toll free number and inform them about the incident
- Based on the case, the insurance advisor will swing into action and help you with the list of documents required and the next step
- Based on the nature of the incident, you might be required to file an FIR at the nearest police station
What are the most common reasons for claim rejection?
Some of the common reasons for claim rejection are:
- Lapsed policy
- Inordinate delay in intimation of claim to the insurance company and police
- Providing incorrect claim information due to oversight by customer
- Any mis-selling of policies that may have taken place at the time of buying a policy
- Deliberate damage
- Use of private vehicle for commercial purposes
- Driving under influence of drugs or alcohol
- Unauthorised modifications to the vehicle
Also Read: What can Prevent Rejection of Motor Insurance Claims?
Can I claim for damages in case someone else was driving my vehicle and the vehicle met with an accident?
- If the driver is a valid license holder, and the vehicle has comprehensive insurance, you can register a claim. However, to avail compensation for medical care of the driver, a personal accident rider must be availed.