GENERAL INSURANCE

Q1 – What is Motor Insurance Policy ? What are the benefits?

Motor Insurance includes Private Cars, Motorised Two Wheelers and Commercial Vehicles excluding vehicles running on rails. There are two types of policies (i) Liability Policy (ii) Package Policy. That Motor Liability Policy is mandatory as per Motor Vehicle Act, 1939 whereas the Package Policy is at the willingness.   If  “Package Policy” has been opted that itself includes the coverage of Liability Policy.

BENEFITS: Package Policy provides protection to the vehicle:-

Loss by Fire & Theft,  Loss &/or damage by accidental external means the insured is indemnified taking into account the depreciation and thereby repairs, replacement and labour charges are borne by the Company.

In the event the insured vehicle has hit any person resulting into injuries &/or death or damage to the property the liability affixed by the judiciary on the insured is shifted the Insurance Company subject to the limitations.

Q2 – What is the validity of Car Insurance Policy ? How do get my car insurance renewed?

The validity of the Car Insurance Policy is for a period of twelve months, however there is provision for short duration insurance also.

Renewal of the Car Insurance: One can get his car insurance renewed by payment of premium before expiry of the existing policy with the same insurer through “Online” or by depositing the premium in the Company. However, if willing to change the insurer there might be possibility that the insurer will get physical inspection of the car and this inspection charges will be levied to the insured.

Q3 – What are the different important things to know viz. IDV, NCB, T.P., Depreciation?

• IDV: Insured’s declared Value of the vehicle will be deemed to be the “Sum Insured”
• NCB: No Claim Bonus is earned only in the Own Damage Section of the Policy. An insured becomes entitled to NCB only at the renewal of the policy after the expiry of the full duration of 12 months.
• T.P: Normally the term refers to Third Party means excluding the insured and/or his family members.
• Depreciation: Depreciation is applicable for parts for partial loss claims and is being calculated based on age of the vehicle.

Q4 – What is the Cashless Motor Policy?

Motor Policies issued by the insurer has tie up with the dealers of the Motor Vehicle and authorized repairers. Hence, under Cashless facility in the event of any loss/or damages to the vehicle the insured has the liberty to take his vehicle to authorized dealer/repairer who itself will deal with the insurer in regard to intimation, loss assessment.  Under such facility the insured has to provide all original documents On completion of the repairs the depreciation part and compulsory deduction amount has to be deposited by the insured and rest the dealer/repairer will be paid by the Company directly.

Q5 – Is the premium higher in case of a Cashless Policy?

No, “Cashless” is just a facility to the customers and there is no difference in premium in ordinary insurance policy or Cashless Policy.

Q6 – How do I get claim, in case of any damage or loss of my Car?

In the event of loss to Car by

• (i) Fire &/or
• (ii) Theft &/or
• (iii)Accidental External Means.

In the event of loss by Fire, Intimation to Fire Brigade Department is must.

In the event of loss by Theft, Intimation to Police Department and Intimation to RTO is must.

In regard to loss &/or damage by Accidental External Means, If the insurer has  provided “Cashless” facility the insured has to take the vehicle to  authorized dealer/repairer who in turn will take up the matter with the insurer for deputation of the panel surveyor for  loss assessment. On completion of the repairs the depreciation part and compulsory deduction amount has to be deposited by the insured and rest the dealer/repairer will be paid by the Company.

Q7 – What 5 things I should look at while comparing & buying Car Insurance Policy?

I must look at the following 5 things

• Comparison of Premium as it will have a direct financial impact. While comparison I must look that all the insurers are giving same risk coverage or there is variation.
• “Cashless” facility as this today is of vital importance. If cashless facility is provided on the policy to some extent I am relieved of many tensions as going to the insurer and getting their requirements fulfilled.
• In the changed scenario I must look for
  • No claim Bonus Protection
  • Daily Allowance
  • Depreciation Reimbursement
  • Protection to Engine & Gear Box
  • Emergency transport and Hotel Expenses
• Service Part of the Insurer: This is of vital importance as today each insurer is giving assurance but at the time of claim there is a different scene and we have to knock to door time and again.
• Service Provider is of utmost importance as this may be an agent or a broker. Whether he has the subject knowledge and stands by you in the event of claim to give you assistance and technical know how.