Motor
insurance is an important tool that can save your hard earned money and your
beloved vehicle in case of theft or damage due to any unwanted situation.
Though you may consider taking motor insurance as an additional cost on your
wallet, but keeping a few things in mind can save you a lot of money.
You should take correct
information of the chosen plan to get more out of it. You can easily get the
best motor insurance policy by comparing plans offered by different companies
online. Here are some features that you must know about a motor insurance policy.
Types of policies: Basically, there are two types of policies
namely comprehensive insurance and third party liability.
Third Party (or liability
only policy)
This plan offers the desired
coverage to the third party on account of any accident caused by your vehicle.
It also provides coverage on personal accident to the owner or driver. It does
not provide coverage for any damage to your vehicle. As per the law under the
Motor Insurance Act, it is mandatory to have this insurance policy.
To get the coverage on the
loss incurred on your vehicle, you need to buy the comprehensive insurance
policy. A comprehensive insurance policy is designed in a way that can provide
coverage to a third party and own damage as well.
In India, taking cover for
own damages is not mandatory. But it is advisable to buy the comprehensive
cover that can offer complete protection.
Covered risk
A good motor
insurance policy covers your vehicle against damage on account
of natural disasters such as earthquake, flood, storm, etc. and man-made
disasters such as accident, theft, fire, riots, malicious act etc.
Premium of your vehicle will
be set on the basis of a few factors that include the type of vehicle you have,
where you stay, your age, claim experience and much more.
Premium saving options
One of the popular ways to
save premium is through the feature of no-claim bonus (NCB), under which you
get a discount on your premium for a claim-less year.
In addition, this discount
will increase by the year and can go high as 50 per cent. As the advantage is
available after a year, it is better to avoid filing small claims that you can
handle on your own.
It is available for the owner
of the comprehensive insurance policy. You can use this NCB bonus for paying
the premium or you can adjust the same at the time of new purchases.
If your policy lapses and you
don’t renew it within 90 days, you will lose the benefit of NCB benefit.
Other ways to reduce your
premium comprise installing safety devices; having a membership of an
automobile association, or opting for higher deductibles.
Portability
The insurance policy is
portable. It means that you can change your insurance company without losing
the benefit of any no-claim bonus that
you may be entitled to.
Add-ons
You can improve the coverage
by choosing the add-on covers to insure against risks that are not covered
under a normal policy. Some of the ordinary add-on covers include zero
depreciation, no claim bonus protection, accidental hospitalisation, etc.
Points to note
The injured party has to
prove negligence on the part of the motor vehicle owner to claim damages from
him and his insurer.
Compensation for the harm
cannot be claimed more than once. Hence, the injured party cannot expect
his/her insurance company to make up for any deficit in the recompense that has
been decided by the court.
Search online to get free
motor insurance quotes to get the best insurance policy for your vehicle and
get covered against any unforeseen event.
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