There are a lot of insurance options on the market, making it hard to choose the right car insurance. The above all else move toward picking the right arrangement is to take care of business.
Even though third-party insurance is required by law in India, it only covers damage to third parties caused by your vehicle. Vehicles are covered by an Own Damage (OD) policy in the event of an accident, theft, fire, natural disaster, or other occurrence.
As a result, it’s in everyone’s best interest to purchase comprehensive auto insurance that covers damage caused by third parties as well as their own actions.
One ought to, moreover, assess numerous boundaries prior to settling on the right engine insurance contract.
Here are some suggestions:
Evaluate the policies
Before selecting a comprehensive motor insurance policy. offered by various insurance companies based on a variety of parameters, such as the insured declared value (IDV), the number of available add-ons, inclusions and exclusions, premiums, no-claim bonus, etc., According to Kunal Jha, Head of Motor Product and Actuarial at Digit Insurance, in an interview with CNBC-TV18.com, the premium alone should not be the deciding factor in choosing one insurer over another, even though the offerings may differ from insurer to insurer.
Consider customer service
Do some research on the insurer’s customer service to see how the entire experience, from onboarding to claims, is.
“You can also check online customer reviews and ratings to see how easy or difficult it is to buy the insurance plan. Choose a company that responds quickly to customer complaints and offers assistance round-the-clock,” Jha advised.
Check the claims settlement ratio
The regulator requires insurers to disclose their claims settlement ratio (CSR) to the public. The percentage of claims that an insurer settles out of the total claims it received throughout the year is known as CSR.
Pay attention to cashless garages
If your vehicle has been damaged and needs to be fixed there. Policyholders can use a cashless option provided by insurers, who have ties to numerous garages.
This indicates that your insurer would settle the amount directly with the garage, saving you from having to pay the entire amount up front and then file a claim for reimbursement later. According to Jha, who spoke with CNBC-TV18.com, you might want to look at the list of cashless network garages in your area.
What essential additions should be taken into account?
The holder of a comprehensive automobile insurance policy can take advantage of a number of additional benefits. You can evaluate all of the insurer’s add-ons and select the ones that best suit your requirements.
A few additional options are as follows:
Return to invoice cover
This add-on ensures that the customer receives the full invoice value of their vehicle in the event of theft or total loss—that is, damage beyond repair.
Protection for the engine and gearbox
Under a comprehensive plan, the engine and gearbox of your vehicle are only covered in the event of accidental damage; consequent damage to the engine is not covered by the insurer.
Jha stated, “Taking an engine and gearbox protection add-on makes sense because replacing the car engine is extremely expensive and can cost up to 40% of the vehicle’s cost.”
Zero depreciation cover, according to Jha, requires insurers to deduct the depreciation of your vehicle’s components before making a payment. This indicates that you will bear the expense of the assessed repair parts’ depreciation.
You can guarantee that your insurer will also cover and pay the depreciation amount if you take out a zero-depreciation cover.
Tyre Protect cover
Only covers tyre damage in the event of an accident. Purchasing an add-on for tire protection can cover damage to the tires caused by cuts, bursts, or bulges.
Breakdown assistance:
Adding breakdown assistance to your policy might be a good idea if you want to avoid being stranded in the event that your vehicle breaks down. In the event that you need towing, fuel assistance, or assistance with a dead battery or tire, this would guarantee that you will receive assistance round-the-clock.
Pay as you go (PAYD) insurance
If you drive less, some insurers may offer PAYD insurance as an add-on, which gives you a discount on your premium if the car is driven less than 15,000 kilometers per year (in the Digit case).
What are the dangers of driving without insurance?
Leaving your vehicle without insurance can put you at risk in multiple ways. Let’s look at it:
Legal: To drive on Indian roads, all vehicles must have Third-Party (TP) insurance, according to the Motor Vehicles Act of 1998. A violation of the law, driving a vehicle without the required TP cover can result in a fine of up to Rs 4,000 and a prison sentence of up to three months.
Costs associated with vehicle maintenance
If you are in an accident with your uninsured vehicle and do not have your own damage policy, you would be responsible for all costs associated with repairs. In the event of significant damage, repair costs can be very high.
“Having your own damage policy also shields you from theft, fire, and natural disasters. If you were in an accident with a third party in which your vehicle caused damage to their vehicle or property, caused serious injuries, or resulted in the death of a person, and you do not have the required Third-Party Coverage, you may be liable for any legal claims. “The court-awarded compensation could be very high, so this could pose a significant financial risk,” Jha told CNBC-TV18.com.
Loss of no-claim benefits
If you don’t renew your car insurance within the first 90 days of the policy’s expiration, you could lose the no-claim bonus (NCB) that you had accrued under your previous policy. If there is no claim during the current year, all motor insurance policies allow for a discount on the premium of the policy for the following year.
Kha added that if you do not renew the policy on time, you run the risk of not only missing out on the NCB but also having to pay higher premiums and possibly having the insurer perform a pre-inspection on the vehicle.
