Understanding the Features of Motor Insurance Policy

Motor insurance policy is a must for every car owner. Hence, it is important to understand these features in order to extract maximum benefits. You can now get your car repaired at one of the listed garages without paying cash. The repair bill will be taken care of by the insurance company. The facility is referred to as cashless claim.

Owning a car has been a dream for many. In fact, most of us have nurtured this dream since childhood. Getting it insured will protect this investment.Motor insurance policy, also known as auto insurance or car insurance is usually bought for cars. The major benefit of having one is that it ensures higher level of protection against losses incurred due to road accidents. It also protects us against complications arising from third party liability

Before you buy car insurance, it is vital to understand the types of car insurances available in India:

A motor insurance policy is categorized into two types:

1. Comprehensive car insurance
2. Third Party car insurance
   

1. Comprehensive Car Insurance

The comprehensive plan will cover you and your vehicle against number of risks arising out of destruction done to the vehicle due to an accident, theft etc. It also covers death of driver and/or passengers inside the vehicle in the event of an accident. The plan offers cover against damage caused by the car to the third party or his/her property.

A standard comprehensive car insurance plan insures your car against the following listed below:

It covers against listed damage and destruction done to the car due to floods, earthquakes, typhoons etc.

It covers damage and destruction caused to the vehicle due to theft, burglary, strikes, riots, etc.

The cover offers protection for the owner/driver of the car and co-passengers while travelling. The cover is also valid for damage and destruction caused during mounting or dismounting from the car.

This plan will protect insurance buyer against damage or destruction done by your vehicle to another vehicle or property. You will not be covered for theft, burglary, accidents, or any other damage to the car.

The third party liability cover will protect you against any legal liability caused due to unintentional damages including:
Permanent injury of the individual

• Death of the individual
• Damage caused to the property of the individual
  Damage caused while driving the insured vehicle on road
• Both Comprehensive and Third Party car insurance plans are valid for about 12 months. One needs to renew the plan each year to avail of the benefits offered by the insurance company.

The premium of car policy depends on some specific parameters such as classification of vehicle (model, year of make, type etc.), value etc.

There are certain clauses which very much an integral part of car insurance that a buyer should be aware of.

You as an insurance owner cannot claim for destruction or damage occurring to the car due to the following:

General wear and tear of car

General aging of vehicle

Depreciation

Consequential loss

Mechanical breakdown

Breakdown due to electrical faults

Wear and tear of tubes and tires

If the vehicle is used for purposes other than stated in the 'restrictions' of usage in the policy agreement

Car being used outside India’s geographical boundaries

Driving without a valid license

Driver under the influence of alcohol or drugs

Loss or damage occurred due to nuclear risk, war, or mutiny

Making Claims for Car Insurance
If you are involved in an accident or damaged someone's car, you can claim for insurance.

In order to make such as a claim, you require doing the following listed below:

Record the licence plate number of car vehicle involved (if any)

Record names and phone numbers of witnesses (if any)

Reach out to the car insurance company and file a claim.

Note down the claim reference number offered to you and make a list of documents needed for processing of claim. Confirm whether the insurance corporation has a list for preferred garaged. If yes, then you must get details of the same.

File an FIR (First Information Report) at the nearest police station if major damages, physical injury, theft, or property damage have occurred.

Submit documents to the representative of car insurance company. You should also verify the documents with originals.

Pay the garage authorities for additional charges.

Cashless Claims and Reimbursement Claims
You can get your car repaired at any of the listed garages and claim for the insurance. The car insurance company will pay for the repairs. This facility is referred to as a cashless claim.

Another way is to get the car serviced or repaired at a garage of your choice. Thereafter, you can ask the company to reimburse the expenses. This facility is referred to as a reimbursement claim.

Benefits of Motor Insurance Policy Cashless Claims

• The responsibility completely lies with the insurance company
• The inspector will take the car to the garage and get it repaired. He will also return it back to you
• The garage network of car insurance company is reliable The service offered by garage network is of high standards as compared to a local garage

Benefits of Motor Insurance Policy Reimbursement Claims

• You can repair your car at any of the garages preferred by you
• Instant action will take place soon after the inspection
• The garage you choose may fit into your budget. This is important because you need to pay for some specific expenses from your own pocket
• You can repair other parts of car that are damaged at the time of accident