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28/01/2020 12:48pm

7 Frequently asked questions on getting car insurance in India

image 7 Frequently asked questions on getting car insurance in India

New Delhi, Jan 21 (KNN) After purchasing a new car, the next thing that is important for a buyer is to get coverage. Being a beginner, there might be many aspects that are relatively complex and can be intimidating. Car insurance is not only about having insurance that is mandatory according to the law. There are many aspects that policy owners are not aware of before zeroing any car insurance policy. It is wise that you know all the factors when considering a car insurance policy. The best car insurance in India gives good coverage at an economical price range.

7 frequently asked questions by policyholders while getting car insurance in India:

What is comprehensive coverage? How is it different from third party insurance?

Comprehensive coverage will offer full protection to the car and the policy owner in the wake of an accident. Further, the policy will provide coverage against incidence like theft, vandalism, fire, and damages selected as per the insurance plan. Third-party insurance is compulsory as per the motor tariff Act 2002. You will get compensation for the damages caused to the third party, which includes body injuries, property damage, and death. However, it does not provide coverage for the damage of your own car.

What is a No claim bonus in car insurance?

Vehicle owners are entitled to get a no claim bonus when they made no single in a particular year. The insurance company offers a discount to the prudent drivers in the following year for no claims. Through a no claim bonus, the price of an insurance premium is dragged down considerably. The discounts start at 20 percent frm the first year. This discount usually goes in up to 50 percent in the successive years if the drivers made on a claim.

Is there any need to raise small claims?

Sometimes it makes no sense to raise small claims this will not be beneficial in the long run. It is ideal for the vehicle owners to get an estimate of the repairs whenever the vehicle is being damaged. There is no point in raising a claim if the estimated cost of repair is less than the amount of no claim bonus you stand to forfeit in the upcoming year. Example: If your car meets an accident in the initial year, and the estimated repair cost is INR 2000, there is no point in raising a claim if it is less than your NCB in the forthcoming year which is INR 2,285 (11,557-9,272).

What happens if I change my car in the middle of the year?

If you change your car in the middle of the year, there are a few things that you need to keep in mind. At first, you must preferably opt for the same class of the car. This will help in making the adjustments in a much simpler way. then the premium amount will increase. All the calculations related to such adjustments are made on a pro-rata basis that will be held effective frm the date of substitution. It is imperative that you give all the details regarding the changes to your insurance company. Also, ask them how this is going to put an effect on your insurance amount. Follow the policy’s underwriting guidelines and update your policy by informing your insurer.

Will I get coverage if another person is driving my vehicle at the time of the accident?

Accidents can happen at any point in time without knocking your doors. Another person might drive your car at the time of the mishap, and you might not be prepared for such a thing. However, there is no need to get worried in times of raising the claims. The liability of coverage follows irrespective of the person driving the wheels. Therefore, the insurance on the car will be applicable even if another person is driving it. However, the policy will give coverage until its limits, and the rest of the money has to be born by the person driving the car.

I am selling my car. Can be insurance policy be transferred to the new owner?

You are selling your vehicle to another owner, the car insurance can also be transferred as well. However, there are certain steps that are to be taken by the new owner in the wake of policy transfer. This includes an application for the transfer of the vehicle, to the insurance company within a time frame of 14 days frm the date of transfer of the car in his name. The new owner also needs to make a payment for the endorsement premium for the rest of the policy.

What is the term validity of car insurance?

The car insurance policy generally comes with a term validity of one year. After one year, the car owners need to renew the policy. In case there is a gap in the renewal of the policy, the cost of the premium will raise automatically.

Getting the best car insurance policy is essential, but car owners also need to know about the various aspects related to it. These frequently asked questions will clear all the doubts hovering in the minds of policy buyers.


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