Motor Insurance, is a precautionary measure, mandated by Indian law for all motor buyers in the country. It serves as protection against any unforeseen accident or damage to the vehicle. With numerous insurance companies in the market, offering diverse terms and conditions, how does one go about choosing the right plan for their vehicle? What factors must be considered when making the choice? My Insurance Club explains it all.
An Overview of Motor Insurance
Motor Insurance offers cover against loss or damage to the vehicle by accident, fire, earthquake, riots, lightning, theft, or explosion, and third-party cover. It could broadly be categorized into two types:
1. Third-Party Liability Insurance – The Motor Vehicle Act of India makes it mandatory for all motor owners to take third-party liability insurance. This cover is for any bodily injury or death and property damage to a third party.
2. Comprehensive Insurance – A comprehensive motor insurance policy covers any loss or damage to the vehicle that has been insured, stolen vehicle, plus cover for Third Party Liability.
Making a Choice – How Should You Go About It
# Understand your insurance need
First and foremost you need to understand what exactly your insurance need is. What do you want to protect? Insurance companies offer additional cover at extra costs, such as personal accident cover for passengers or quick service on breakdowns or accidents. Be clear about what things you want to protect. Sometimes covering something of less importance could leave you paying extra money.
# Do a comparative study
Do an extensive comparison of what each insurer has to offer and the costs they involve. MyInsuranceClub, make this process easier through the comprehensive comparison facility available online. Check the various parameters of policies versus the cost while making your choice. Some plans come with low premiums and some a higher premiums. Evaluate and choose the one which gives you the best deal for the premium it charges.
# Check the credibility of the insurer
It is essential to check the credibility of the insurer. This is to ensure your claims, are settled on time. The company must be financially stable with a good credit history. Reviews from websites, any consumer complaints, and even word-of-mouth opinions would be quite beneficial in this regard. It is always better to go in for a company that has a good name and reputation.
# Read the finer details
Get familiar with the terms and conditions of the policy. What are the modes of payment, claims procedure, and renewal procedure? Get familiar with the procedures for a hassle-free relationship with the insurance company.
# Cashless Settlement
Cashless settlement for motor insurance is an easy and simpler way to settle claims. Insurance companies have tie-ups with various garages across the country for such settlements. Cashless settlements do not require any authorization for claims and hence one need not run from pillar to post to file claims. Check to see if the insurance company’s authorized garage for cashless settlement is one in which you would be comfortable getting your vehicle serviced.
# Evaluating at the time of insurance renewal too
Shopping for insurance should not be done only at the time of buying a new car. You must shop around a bit when your policy comes up for renewal too. With so many insurance players in the market, it pays to check if your current insurer is offering you the best quote possible.
Motor Insurance Exclusions
In general, the following are the exclusions of motor insurance by almost all insurance companies. So before filing your claims check on the exclusions.
- Normal wear, tear, and general aging of the vehicle
- Depreciation or any consequential loss
- Mechanical/electrical breakdown
- Wear and tear of consumables like tires and tubes
- Vehicles including cars being used otherwise than in accordance with limitations as to use
- Damage to/by a person driving any vehicles or cars without a valid license
- Damage to/by a person driving the vehicle under the influence of drugs or liquor
- Loss/damage due to war, mutiny, or nuclear risk
