MOTOR ISURANCE
Motor Insurance is a must-have factor for all. It can protect hard earned money spent on vehicle in case of theft/damage or loss due to any unwanted circumstances.
Though it is considered taking motor insurance as an additional cost on your wallet, but it protects financially from major damages or losses incurred in case of vehicle.
One should take truthful facts of the chosen plan to get more out of it. So that he/she can easily get the best-suit motor insurance policy by comparing premium plans offered by various insurer companies online.
Basically, Motor Insurance is available in two types
1) Comprehensive
2) Third Party Liability plan.
Third Party Liability plan offers the coverage to the third party only against any accident caused by owner’s vehicle. This insurance policy does not cover for any damage or loss of the vehicle.
However, it also offers coverage on PA (Personal Accident) to the owner or driver. As per the Motor Insurance Act, it is mandatory to have this insurance policy.
Comprehensive Plan also covers the damage/loss incurred on the vehicle. So in India, it is advisable to buy the comprehensive cover in order to get complete protection.
Here are some benefits every policy buyer must know while purchasing Motor Insurance:
Covered risk
Motor insurance covers your vehicle against damage or loss from unwanted natural disasters such as earthquake, flood, frost, cyclone, storm, land/rock slide etc. This insurance plan also covers risk from man-made disasters such as theft, burglary, malicious act, accident, fire and more.
Insured value
In Motor Insurance, Car/Two Wheeler is insured for a value called IDV or Insured Declared Value in policy terms. The IDV is based on the brand manufacturer’s price of the vehicle minus depreciation as per the vehicle age.
This IDV gives an estimate to the Insurance owner to cover from vehicle damage in terms of financial protection.
Premium of the vehicle will include the factors such as type of the vehicle, where owner stays, age, claim experience etc.
Premium saving options
One largest benefit to save premium on Motor Insurance is NCB (No Claim Bonus). Under this benefit, insurance owner get a discount on premium for a claim-less year.
This NCB benefit will increase by the year and it can go high up to 50%. This advantage is given after a year, so it is better for insurance owner to avoid small claims, which have negligible financial effects. Owner can use this bonus for paying the premium or can adjust the same at the time of new purchases.
Note: One should be careful for this bonus as if the policy lapses and policy holder don’t renew it within 90 days, it will not be considered as beneficiary.
Portability
If policy holder wants to change the insurance company, he/she can do without losing the benefit of NCB claim for which the policy holder is entitled.
Add-ons
Policy holder can get surplus benefits by adding add-ons against risks which are not covered under normal policy plan such as Zero Depreciation, No Claim Bonus protection, Accidental Hospitalisation and more.
Points to note
In digital marketing era, lots of IRDA approved insurance service brokers offer facility to compare premium plan among insurers online. Customers can browse direct to get best-suit premium plan from these insurance and get covered in a few clicks without any hassle.
If you want to know more about Motor Insurance, click IRDA FAQ Motor Insurance.
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