Some important points while insuring your vehicle:
The tariffs in case of Motor Insurance are governed by Tariff Advisory Committee therefore there is not much difference in the rates charged by various companies. You can compare the policies in terms of services provided by the companies. Check out the following points to see on what basis you can compare the motor insurance services:-
Cashless Claims: The foremost service where one can check for the comparison in Motor Insurance is to select that car insurance which offers the cashless settlement service wherein at the time of any accident you just need to inform the insurer & the insurer will direct you to an authorized garage wherein the policyholder need not pay to the garage & the insurer will pay on its own. Thus this service helps you to remove all the hassles of arranging money in a short time span.
Shortest Claim Settlement time: You must select that insurer which has the record of settling the claims in the shortest possible time period.
Points to remember while buying an auto insurance-
The first and the foremost thing that one needs to check while buying an auto insurance is the company from where he is buying. He must ensure that the company from where he is buying the insurance must be a genuine one and if possible one should check whether the company has a genuine license or not. Moreover the individual should also check the claim settlement ratio of the company from the website of the company. This may help an individual to choose the best insurance policy.
The price of the premium should also be considered while opting for an auto insurance. The lowest price of the premium should not be the only criteria for choosing an auto insurance. It should be borne in mind that the price of the premium depends on various factors like make, manufacturer, the fuel type of the car ,the history and gender of the driver, the past claim history of the owner, the geographic location in which the car is driven etc .
The type of coverage that one needs must also be kept in mind while buying a policy. Generally, auto insurance provides two types of cover- Third Party and comprehensive cover. Comprehensive cover includes third party cover as well and it is mandatory for all vehicles to have third party cover according to the Motor Vehicle Act of 1988. The third party property damage generally has a limited coverage of Rs 7.50 lakhs for commercial vehicles and private cars and for two wheelers the cover provided is Rs 1 lakh .
While buying an insurance policy one should also consider the network and tie ups that the company has with the garages to provide cashless claims to the customers. The customer if possible should also analyses the services of these garage so that in the future he/she doesn't have any problem while making a claim.
If one has a new car one can also opt for a zero depreciation cover. Introduced in India about two years ago, these policies does not deduct for the depreciated parts replaced and is only available for new cars and does not cover cars that are more than three years old. These policies are a bit costly and there are restrictions on the number of claims that can be opted without depreciation during the entire policy period.
If the car has LPG kit, the kit has to be insured separately and has to be declared at the time of taking the policy. An LPG kit attracts higher premium, generally an additional premium of 4% of the kit.
An auto insurance in India is valid only within the country and cannot be transferred outside India unless and until specifically authorized by TAC. The geographical area may be extended to Bangladesh, Pakistan, Nepal, Maldives, Sri Lanka and Bhutan on payment of a flat additional premium.
General steps that one needs to follow while making a claim:
• First, one should decide whether to make a claim or not. If the damage caused are minor ones and affordable one should avoid making a claim as it would not allow the individual to opt for No Claim Bonus.
• If the damage occurred is not affordable one should call the insurance company within 24 hours of the occurrence of an accident. The executive may ask for various information like policy number, insured's name and contact number, place of accident, vehicle's registration number, type model etc. to register the claim.
• If possible the vehicle must be taken to the nearest garage/workshop. After getting a repair estimate one should fill the claim form and submit the relevant documents like copy of the registration policy, FIR report if applicable, registration copy of the vehicle etc.
• After submitting the necessary documents the insurance company would sent a surveyor who would be responsible for inspecting the vehicle and then verify whether the repair estimate submitted by the insured is correct or not. The surveyor will prepare a report and accordingly the claim will be settled.
• After the repair, the final bill bearing the stamp of the workshop is submitted to the insurance company. The insurance company inspects it and only after that the individual is being allowed to take the vehicle home.
• One can also opt for 'cashless claim' facility if one takes the vehicle to any workshop/garage that is within the insurance company's network.
• In case of theft of the vehicle one needs to register a police complaint and inform the insurer about it. After around 90 days the "non-traceable report" is generated and then only case would be put forward for settlement.