Person who possesses a vehicle needs to purchase a motor
insurance policy for the auto. The Motor Vehicle Act makes it compulsory for
the vehicle owner to buy this type of insurance. According to the law,
mandatory policy is needed to cover the liability of the vehicle owner towards
the third parties who get hurt or whose property gets smashed or scratched by
the use of vehicle.
In fact, this Act recommends fine/penalties/punishment for
not having legal policy for the auto. Vehicle is a valued asset for every auto
owner; basically, people prefer to cover the vehicle against accidental damage
or loss. It is possible by availing a comprehensive package policy for the
motor that includes in addition to the compulsory third party liability and
damage to the vehicle as well.
Points to Consider while Buying
Auto Insurance
In case the motor is new, make sure that the delivery is
received only after a comprehensive insurance is availed. In some cases,
manufacturers offer free policy or the dealer helps in getting the motor
covered. Do not forget to review the credentials of the insurance companies in
India, coverage provided under the plan and the premium charged. Insurer's
credentials relate to the customer service track record of the insurance
companies in India. This should associate to insurance servicing as well as
timeliness in claim settlement.
Currently, this can be easily checked by taking a opinion
from current policyholders of that particular insurer, colleagues, friends or
relatives. If customer is dissatisfied with the existing insurer which is
recommended by the dealer, then he or she can selects their own choices and
avail the policy through online insurance broker. These standard motor
insurance policy are available with add-on covers like depreciation
buy-back or nil depreciation, no claim bonus protection, increased personal
accident, return-to-invoice, accidental hospitalization etc are some of the
popular add-on covers. These add-on covers give extended protection to the
policyholders. 'Return-to-invoice' is the most important add-on covers for a
new motor because it helps the policyholder to avail the complete value of the
motor in case of a total loss in an accident.
No Claim Bonus
Insurance companies in India provide 'no claim bonus' for
claim free years. Remember to declare the claim status at the time of renewing
auto insurance under the expiring plan in case the renewal is being taken from
a new insurance company. In case customer can successfully produce a renewal
notice given by the expiring policy's insurance company, the new insurer will
provide 'no claim bonus' as mentioned in the renewal notice. Even if customer
is not able to produce renewal notice, sometimes insurance companies in India
give no claim bonuses depend on a declaration by the policyholder about claim
under the existing plan. Many people forget to renew their auto insurance on
time.
In India, all insurance companies provide 'no claim bonus' in
which the policyholder will be eligible for around 25 percent bonus in the
third year in case he has not claimed policy for nearly two years.
Sarika Kodag helps readers to select the best Auto
Insurance as she has vast experience in this sector. She always looks out
for subjects related to insurance and writes informative yet interesting
articles on investing, saving and financial planning. Her forte is to
comparatively analyze and suggest different insurance policies to her readers.
She provides knowledge about various investing options and make reader aware of
current news about insurance field. So, they can use it to improve their
future. She specializes on topics about health, car and life insurance. In her
free time, she writes on business and travel insurance as well. Also, she
advises many people including her friends, family and relatives who require
wealth management solutions. All the best to you while comparing insurance and
I hope that you get a beneficial deal by visiting this space regularly. Most of
the people who got help from her feels that with her advices, process of
purchasing insurance became easy.
[Source: http://www.sooperarticles.com/finance-articles/insurance-articles/find-right-motor-insurance-maintain-your-budget-1306031.html?page_tag=CawEojev75ty5sAhGr_cTRdSpRTjD29Bk_eMetdDIZiDIbeZoAnAwAn4yLcMh-c4e10MMH7673gbHm6HjLoK7w~~]
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