Why Your Second Vehicle Needs Insurance Too

Insurance companies often come across instances of second hand car insurance claims, where the new owner claims for damages to the vehicle without having transferred the insurance policy in his name after the purchase. The claim however is not admissible in the absence of a valid contract between the insurance company and the new owner of the vehicle. In a recent case, the Pune Consumer Court ruled in favour of the insurance company and upheld the insurer's decision of not paying the claim to a second hand vehicle owner since he had not transferred the insurance policy to his name. The Court ruled that an insurance policy is a contract between a policy holder and an insurer. In the absence of the new vehicle owner's name on the motor insurance policy, there exists no valid contract between him and the insurance company. Hence any accidental damage suffered by the new owner is not admissible under the previous policy.

Owing to low awareness on insurance amongst the general public instances of post loss insurance grievances in such scenarios are common place in India. Hence it is important for individuals who have purchased or are looking at buying a second hand vehicle, to know that transfer of insurance is an equally critical aspect of the buying process and should not be ignored or procrastinated. Also, the individuals who sell their vehicle have an equal responsibility to ensure that the insurance is transferred in the new owners name to avoid any legal hassles that may arise in the future. Here we shall explain how not transferring of insurance will impact both the buyer and the seller of the motor vehicle. We shall also demystify for you the procedure of ensuring a seamless insurance transfer.

To begin with it is important to understand the structure of a motor insurance policy. A comprehensive motor insurance policy comprises of two parts - Own Damage (OD) and Third Party (TP). Whereas TP section covers damages caused by your vehicle to a third person and are mandated by law, OD section covers damages caused to your vehicle owing to any accidental mishap. After purchasing a used car, Section 157 of the Motor Vehicle Act casts a duty on the new vehicle owner to get the insurance policy transferred in his name by applying to the insurance company within the first 14 days. For these 14 days, only the "Third Party" section of the insurance policy gets automatically transferred. However, it does not apply to the Own Damage section of the policy. The "Own Damage" section will be transferred only after the insurance policy gets registered under the new owner's name. Post this 14 day period, if the new owner fails to get the insurance policy transferred in his/her name the insurance company is not liable to bear any losses incurred by new owner in either of the TP/OD sections.

If the insurance is not transferred and the policy still bears the name of the first owner, in case of an accident the claim for damages to the vehicle or third party will not be paid by the insurance company. Moreover, the court may also send the first owner a notice to compensate for the loss caused to a third party, for an accident caused by the new owner. The whole process of establishing the proofs of sale, the transfer of vehicle RC etc. by the previous owner can be a grueling exercise. This can be easily avoided if both as a seller and a buyer of a second hand vehicle, one insists on getting the insurance policy transferred to the new owner's name immediately after the sale deed is finalized.

Why car insurance policy is so important in India?

An importance of car insurance is felt the most when you're at a workshop, getting your car repair because of an accident or at the police station when it gets stolen. In both cases, a proper insurance cover would have helped you come out of the financial crisis due to such unforeseen events. Insurance cover helps individual to take care of financial crisis if there is any damage done to your car due to the accident, fire, theft, or other natural perils else if it gets stolen.

In India, there are two types of cover - third party & comprehensive cover. A third party insurance cover takes care of the damage done to the third party in terms of property or health loss, a comprehensive cover will take care of the damage done to both party i.e. third party damage and your car damage or injury. Standard car insurance will reimburse your loss; however, if you still feel the pinch in your pockets then there are add-on covers that come into the picture.

All general insurance companies offer a range of optional cover that gives additional protection to your car along with the base car coverage. So, here are some tips to consider about different types of add-on covers and how useful they prove to provide that extra financial cover for your car.

Road Assistance Cover

It proves a very useful cover, especially when your car runs out of fuel, gets a flat tyre or break down due to any reason. The insurance company will arrange for fuel refilling, change the flat tyre or get it towed to nearest workshop.

Zero depreciation

A standard car insurance policy will reimburse the depreciating value of the car parts damaged during an accident. The insurer will deduct the depreciated value from the claim. Although it may not be a problem for low priced cars the high-end cars will go for a toss. This is where zero depreciation comes into the action. A zero depreciation add-on cover will reimburse the full value of the part. Bear in mind that if you have made a car cover claim in the past few years, zero depreciation cover doesn’t make sense.

Engine Protect

When you read fine prints carefully of any car insurance policy, you will discover that own damage doesn’t include damage caused to the engine because of any negligence of wear and tear. Suppose there is car standing in a water-logged area and you turn on the ignition, chances would be the engine gets damaged or if your run car without engine oil, it will damage your engine. At this point for such careless mistakes, it's an engine protect add-on cover that comes to savior for the people. It covers engine damage not caused by an accident. Insurer expert suggests it's worth buying it as the cost of repairing the engine can be quite high.

Consumable Cover

After an accident, car repair takes up a lot of consumable like engine oil, brake settings, fluids, coolants, minor nuts & bolts. These small expenses can push your bill quite significantly. A consumable cover will help you keep the expense under control and pay up for the costs.

Accidental cover

An accidental cover provides compensation to the passengers in case of death or permanent disability caused due to an accident. The coverage amount varies across insurers. You can call up the customer service team of the relevant insurer and get things clarified before including this add-on in your car insurance policy.

Factors to consider while deciding your car value

Protecting your car against damages due to traffic accidents, its liabilities like third party damages, own damage, damages due to natural or man-made incidence is termed as car insurance. An insurance policy also provides for accident cover of the policyholder while driving including the passengers. It also encompasses third party liability which is injury/death or property damage that the driver has to pay.

It’s a mandate by the government of India to buy a suitable car cover to driver your vehicle on road. Most insurance companies have a tie-up with the car dealers and they offer quotes along with the purchase value of the car. 

While deciding upon the cover value there are a lot of factors taken into consideration like car make and model, place of living, occupation, car parking area, security aspects, etc.

However one of the key factors is Insurer’s Declared Value (IDV). It is the sum of the value decided by the insurance firm after careful examination of the car. Not to be mistaken, it can’t be the exact purchase value of your car. Insurance company’s surveyor will go through the car inspection with company norms and quote a cover value to be offered to the insured person during a claim.

Some other factors deciding the value of the car insurance policy:

Age of the Car

As the car gets depreciated every year, the insurance value of the car will also reduce. Hence, during insurance renewal, you have to ensure that you have enough cover amount to bridge up the financial losses. 

Purpose

A self-driven vehicle used for the personal purpose will have lower premium compare to the ones used for business purposes.

Accidents

If the car and its driver are involved in frequent accidents in the past, the premium will higher. As the policies get renewed every year, any accident in this span will also result in a higher premiums rate.

Previously on public sector companies used to offer motor insurance but because of the entry of private sector insurance firms, there are varied innovative policies being sold in the markets. You can choose the policies as per your benefits and premium paying capacity. Also, online car insurance deals are quite exciting and come with loads of discounts with no involvement of agents.

As of now, car insurance sector is booming and companies are targeting the existing and potential customers with innovative policies. It is evolving and a lot of features are being introduced that will influence the premium each year.

The careful comparison is the key for a quality insurance product. You can compare policies in terms of benefits & features, discounts, premium cost, claim settlement, policy terms, and conditions, inclusion & exclusion, premium payment modes, etc. Once done you can narrow down the search to 3 to 4 good insurance policies and choose a particular one for your car. Also, ensure that you read terms and conditions, inclusion & exclusion well before you purchase the policy. At any point of time, if you doubt regarding the policy structure, call up the customer service team or visit online and have thorough chat to clear the clouds in your minds.

In case of policy lapse, your insurance provider gives a grace period of usually fortnight’s time. Post this period you might run the risk of driving a car without insurance. So, it's always better to renewal policy at least a month prior to ensure that you’re safely sheltered under suitable car insurance.  

Some basic checks while choosing car policy

An unfortunate incidence can occur anytime and anywhere, even an experienced driver cannot avoid the risk factor while driving in spite of not being at fault.  In today’s time of rising inflation costs, even a minor accident or a slight bump can result in huge repair costs. The only way to be prepared for such circumstances would own a suitable auto insurance cover.

Car insurance covers you against losses that might occur due to theft, damage due to accidents, natural incidences like fire, earthquake, storm, etc. or vandalism and theft. You will have to pay a certain amount as premium costs to the insurance company and you get an assured sum when you’re in dire needs.

Owning car insurance is mandatory if you wish to drive your vehicle on roads. It could be tricky if you’re unable to choose the right cover and the right insurer. Here are some basic checks while choosing your car insurance policy:

Assess

Before you buy an insurance policy, it’s essential to understand the types of covers available in India. There are two types of cover third-party liability and comprehensive cover. It would be wise to analyze and decide the amount of cover you need. No need to unnecessary adds-on on your policy.

While deciding on your coverage needs, ensure you choose amount equivalents to the total value of your car. While it's not good paying unnecessarily high premiums but it’s also unsafe to be underinsured as you will have to shell money out of your pockets. 

Compare

It would be the next wise step to compare the quotes before purchasing an insurance policy as it will help you save hefty amount and provide better coverage options as well. Comparison platform allows you to do a detailed comparison between insurance companies on the basis of their financial track, claim settlement, reputation, market value, etc. You can visit online forum sites to check customer review, talk to friends or family members on company performance. This comparison will help you save around 30% to 40% on the premium costs.

Look for Discounts

You should constantly be on a hunt for a discount that can reduce your premium and make it easier on your pockets. Factors like good driving records, anti-theft system, paying from particular credit/debit card, festive offers can fetch you good discounts. Make sure you explore all the available options about your car before buying the insurance policy. Don’t go for additional purchase and increase unnecessary costs on your premium.

Add-ons

Add-ons help to customize your car insurance cover as per your need and requirements. Insurance provides you with tailored solutions that specifically suit your needs based on details like the age of your vehicle, make and model, registration, and other factors. Experts say invest a small amount of money for additional benefits like zero depreciation, roadside assistance, engine cover, and personal cover. It may increase your premium to a slight extent but offer wider coverage both to you and your car.

Don’t Undervalue

Premiums of your car insurance are decided on the based on Insured Declared Value (IDV) of your vehicle. You can increase or decrease the IDV of your vehicle as per your premium needs. But expert say don’t undervalue your car as it can create issues during a claim. It will give low coverage amount.  So, compare policies online and buy the best insurance deal for your motor vehicle!

This device will price your car insurance

Your Vehicle Insurance Is Critically Important

How To Purches A Better Motor Insurance Policy

What Determines the Cost of My Auto Insurance?

Compare Motor Insurance Online Plans before the Final Investment

From a layman’s perspective, motor insurance is defined as a policy, which will help you to cover the physical motorbikes and cars, used for personal use. Moreover, this policy also helps in covering those vehicles used for business purposes, like trucks and vans. The primary reason to invest money in motor insurance is to cover any rising cost, in case; any physical damage takes place or due to any natural calamities. It is always mandatory to buy a motor insurance policy if you are planning to drive cars on Indian roads.

Types of motor insurances:

The motor insurance mainly deals with the kind of vehicle you are currently using. Before plunging for the final result, it is better to get associated with various types of insurance policies available for cars. You can easily compare motor Insurance Online plans, which is a great time-consuming package. You are asked to go through the variants in motor vehicle policies, before jumping or the final conclusion. Moreover, depending on the type of emergencies, there are various forms of motor policies available.

For the car insurance:

Car insurance is mainly associated with personal needs. It helps in covering the damages or accidental loss to your car or maybe vehicle of any third party. The third party is mainly a person, who might have injured due to your car and the accident, took place. Depending on the value and mark of your car, the premium amounts are likely to be dedicated. Moreover, the state, where the car has been registered along with the manufacturing dates are also notified before focusing towards the car insurance policies. You can always Buy Car Insurance Plans Online before making the final decision.

Insurance policies based on coverage:

There are different types of motor insurance available, depending on the type of cover. Some of the basic examples are third party motor insurance, comprehensive form of motor insurance and liability only policy. There are some documents required in case you are planning to buy a motor insurance. Some of those are machine chassis number, vehicle registration details, manufacturing year and fitness certificate, in case, the commercial vehicle has been issued by the present or local authority.

Your car insurance is critically important

Insurance in the United States is a big affair. The insurance companies that do business in this country cover almost everything. It is needless to say that car insurance is one of the most important types of insurance covers in the country. Apart from Virginia, New Hampshire and Mississippi, every other state in the country requires car owners to carry some auto insurance cover. And no matter how much you hate insurance companies and their agents, deep within your heart you know how important it is to be insured.

You just have to imagine what all can happen when you are driving. You could get into a collision that damages your car. Or you could get involved in an accident where you or someone else gets physically injured. Car accidents often have this tendency to turn fatal, where someone loses their life. The stupidest cases are those where a car is stolen. In all such cases, you stand to lose a lot of money if you don’t have car insurance cover.

It is important to know the kind of auto insurance you need. And here is where a professional insurance agent plays a big role. One of the primary reasons why people hate the concept of insurance is because they don’t understand most of it. They get fooled into buying something that they don’t need and end up paying more for cover that they don’t require. And when it comes to claiming for insurance, they end up paying more from their own pocket, something no one wants to do when they have insurance cover. A professional car insurance agent can offer need based cover.

Many consumers think that they need full auto insurance cover. The idea is not bad because then an individual covered under comprehensive cover doesn’t need to worry about any situation involving their vehicle. However, not everyone requires insurance cover. Someone may just require collision insurance or theft insurance, but they need an agent to let them know about their requirement.

As you can fairly clearly understand, a car insurance agent plays an important role in someone choosing cover for their vehicle. And because there are so many insurance agents around, it is critical to choose someone who has the reputation of being honest. Because many insurance agents work on their own, one has to find someone who knows what customer service is all about. In the domain of auto insurance, customer service would mean selling the correct policy and helping out when someone makes a claim. And the best insurance agents also stay in touch with their customers and also remind them about insurance premium payments and so on. This is the kind of service available from a very few agents and one needs to know who that person is close to them. Car insurance cover is important for any driver because accidents or thefts or other car related issues don’t announce their arrival. It is an experienced auto insurance agent that helps their customers to make the best choices.

[Source: http://articles.abilogic.com/40670/your-car-insurance-critically-important.html]

The Role of Car Insurance Brokers

The role of a car insurance broker is to act as an intermediary between the customer and the underwriting Insurance Company. Within this role there are various functions that they carry out in interaction both with the car insurance buying public and the Insurer with who they place the business.

When a broker places car and motor insurance risks on cover, their role has a major difference to other types of insurance in that the spread of risk is smaller. This is because a very high proportion of motor business is eventually placed on the basis of 'one risk, one underwriter' - that is to say, a Lloyd's underwriter or Motor Insurance company.

When a member of the public goes to a motor insurance broker they expect that the broker should be fully aware of all the covers available and offered in a standard car insurance policy and a commercial motor policy. A broker also should be knowledgeable about the differences in policies and prices offered by the various Insurance Companies and underwriters with which his brokerage does business.

The Car Insurance Brokers role does not just stop with the supplying and purchasing of the insurance. They should be available to act as an intermediary with the Insurer at any time, acting upon the client's behalf should there be any changes to the policy mid-term of the contract period, or to deal with any claims that need to be made.

The two main insurance areas dealt with by the car insurance broker are the private individual's motor policy and the commercial fleet motor policy.

A marked tendency in the large broking house during recent years has been to concentrate more and more on the commercial motor insurance fleet placings, and less and less on the private sector of the market.

Many large international insurance brokers view the private motor insurance as uneconomic for a fully sustainable business, and so specialist sub-brokers or large provincial and regional brokers are dealing with a greater proportion of this class of motor business.

Car Insurance Brokers receive commissions for their role as intermediaries which are received from the Insurance companies with which the business is placed. The commissions available in the motor market varies somewhat and the recent 'soft market' where premiums and commissions are low, have also led the high street insurance broker to seek more profitable business in insurance classes other than Motor. Commissions for a car insurance policy may range from 7½ per cent to 20 per cent although with commercial vehicle contracts and large fleet business, brokerage may be agreed on a fee basis which is often charged over the whole portfolio for that particular client. In the past a standard rate or tariff which was agreed and reviewed by the Association of British Insurers professional body (ABI) was used in the UK car insurance market. This is no longer the case, but this approach still influences some underwriters in some specialist car insurance areas.

In recent years, however, many larger brokers have developed what is known as a 'direct dealing account'. This is where the broker introduces a sub-broker to underwriters and then permits him to deal directly with them under a fronting agreement with their own marketing. The accounts, however, will still pass through the main broker. The commission is split between the main broker and the sub-broker, with the sub-broker usually commanding the higher percentage. An restriction applied to the sub-broker within the fronting agreement is that he must pass the premium on to the main broker within 30 days of inception of the risk.

The role of the motor broker has changed somewhat in recent years with the development of Internet based quotation systems.

In particular the insurance comparison websites who have taken over the role of the broker to some extent. These quotation systems have been used successfully however by some car insurance brokers who have adapted and embraced the technology and now offer full on-line comparison quotes from their panels of insurance providers. The benefits are a very quick service, although it may still be advantageous for the broker to 'shop around' for the best deal for one's client, particularly if the cover is for a non standard driver or car.

Whatever the changes in the technologies and methods of Car Insurance delivery there will always be clients who want a human face and to talk to someone directly about their insurance needs. The role of the broker is ultimately communication.

Article Source: http://EzineArticles.com/4753910

Did You Buy The Right Motor Policy for Your car ?

Is Budget Car Insurance Cost Effective?

Budget car insurance is widely available on plenty of broker quote sites online.

If you have really good credit, you will automatically pay a lot less for car insurance than most people. Most insurance companies will pull a copy of your credit report as a matter of prudence.

It has been proven that there is a direct relation between your credit score and how likely it is that you will file an insurance claim with an insurance company. This means that if you are a high claimer and are looking for budget car insurance, it may prove difficult.

If you are seeking budget car insurance you could be construed as high risk.

In addition, your insurance company wants to know that you will pay your bills on time, so if your credit score shows that you pay bills late as a matter of routine, you may have some problems getting budget insurance.

Unfortunately, a lot of companies will judge you automatically via your credit score, including budget car insurance companies.

If you drive a fancy car, you can expect to pay more for insurance. New cars cost more to fix, so do expensive cars. Don't expect to get great budget car insurance if you drive a luxury car.

Some auto insurers have a rating system according to your car make and model. Each car has a number on that rating system from 1 to 27. Factored into these numbers are risk factors such as theft and also the overall safety of the vehicle. For example, older model cars that do not have air bags will probably be more costly to ensure as well therefore budget insurance will not fit this criterion.

If you find what you think is really cheap budget insurance, pay special attention to the "hidden" costs. If you are paying via instalment payments, you can definitely expect to pay a lot more over the long run because of administrative costs and interest that are factored into those payments.

When you get a budget car insurance quote, read the fine details.

Sometimes what you think is a good deal for budget car insurance may not be in the end.

If you have a newer vehicle, for example, find out what value your insurance company considers "replacement value" on your car. It may be worth it to pay a little extra to get the value of your vehicle at the time you insure it, rather than the blue book value. It may surprise you to find out that most insurance companies will not give you replacement value if you write your car off.

If you switch insurers, be sure to cancel the existing policy you have with your previous insurer, or you may end up paying both policies. Just because you decide to go with a lower cost policy does not mean that your previous insurer will automatically cancel your insurance policy.

It is a good idea to be aware of all the ins and outs of a lower cost insurance policy. Just because you are paying less for the cheapest car insurance does not mean that you are getting the best deal in the long run.

Due diligence is a must as budget insurance may not be the best option.

Car insurance in an expensive purchase therefore look to Budget Car Insurance to make savings, please see Specialist Auto Insurance for your best options.

Article Source: http://EzineArticles.com/expert/Steven_A_Wright/369999

9 Ways to Buy Cheap Car Policy

Things To Consider During Car Insurance Renewal

Save the Planet Shopping for Auto Insurance Quotes Online

Very few people like the idea of smog-clogged streets, bumper to bumper traffic and stifling heat because overspent environment. Even people who live in Los Angeles, which are quite used to this, but hope for a better, greener tomorrow. There are several ways to look at the car of the situation and help maintain low environmental impact, such as shopping for car insurance quotes online.

You can search cars and dealers online, pay your property taxes and fees online. Why not search online quotes for auto insurance? Gas and energy saved by staying at home and wants to check all local distributors’ warehouse or to obtain insurance quotes online quickly instead of wasting electricity and causing several hours of telephone conversations so long to speak itself. No loss of gas and the stress of your brain and body, avoiding the DMV to pay your child care costs in general only the world a happier place.

Of course, shopping for car insurance quotes online is not something you can do online to help cut your carbon footprint. Make your vehicle maintenance online stores never have what is called Green a medical examination, if you make sure that candles are fire properly, and adjust tire pressure, both of which can affect fuel efficiency. Using maps to plan several trips into one trip, and most fuel efficient ways to reach all your items.

Find alternative fuel stations that sell online. You can even go online to compare the safety of your vehicle insurance and energy efficiency with other cars. If you decide to trade, you will regain its online insurance quotes and see lowest price with a good feeling in the heart and the portfolio. It is even more beautiful going green means (good for the environment) and saving green (cash on hand).

The Internet has the power to do much of the carbon footprint associated with car ownership, including the purchase of auto insurance, go with the time and energy saving. Before mourn nay "Yes, the computer uses energy, and hope it is powered by clean energy from solar, wind, or outdoors teens who pedals a stationary bicycle to work outside of their insurance premiums.

Otherwise, if they are smart, earth-conscious kids, they got the car insurance quotes online.

Really, why wait a minute? If you need auto insurance and wants to feel good about doing your best to save energy, satellite phone, online shop for more fuel efficient car at a dealership green, get your insurance auto quote online and save your planet and your money.

[Source: http://carsinsurance-quotes.blogspot.sg/2010/06/save-planet-shopping-for-auto-insurance.html]

9 Tips for buying a car insurance

Car Insurance

The importance of motor insurance

Motor insurance is mandatory as per the Indian law. It is a minimum regulatory requirement if you are driving on Indian roads. Whether it is a two wheeler, a four wheeler or any other type of vehicle. An insurance is required for vehicles used for both personal as well as commercial use. Today, here are two forms of motor insurance covers available under any comprehensive plan. The first one is offered for own damage cover while the second one covers third party damage. As per the legal obligation, a third party cover is the minimum requirement.Below is a list of the things covered under a comprehensive plan:

Bodily injury –If the policy holder or a third party gets affected due to an accident, it will be covered under a comprehensive plan.

Property damage - This usually refers to the property of the third person that gets damaged due to an accident or anything that happens during the process of driving.

Repairable damage –In the course of an accident if anything happens to the vehicle, then most part of the damage is covered under the plan. Under a repairable damage plan, things like damage as a result of wear and tear, damage to things like electrical and non electrical accessories, etc. will not be covered. The policy holder may have to take some add on rider in order to get all these things covered. It is needless to say that the policy holder has to shed an extra amount for additional benefits.

The internet is a very feasible tool to look for any type of motor insurance online. You can also buy insurance covers for specific damage such as the one caused due to natural disasters like heavy rains, tornado, etc. are covered under a comprehensive insurance policy. However, there are certain norms that need to be fulfilled. In certain cases, all the things are covered under just one policy, but, in some cases, you might have to take an additional rider in order to get all things covered. Let’s take an instance of engine damage which is a common problem during rainy days.Vehicles are affected the most, as a result of the unorganized drainage planning and improper infrastructure of Indian roads, Metropolitan cities are an apt example here. When your vehicle gets drowned in water, the engine becomes moist.

When you try to ignite the vehicle’s engine during this state, it further damages the engine making it even worse. Water can block the engine and the cost of engine repair is generally very high. In case of damage to the color, the interior as well as exterior damage costs may get covered under the comprehensive damage plan. The damaged engine won’t get covered under this plan.Most insurance providers offer a different add on cover so that the policy holder does not have to face issues in case of an emergency situation.The rainy day scenario is quite a common thing for people living in cities. Thus, taking into consideration the unpredictable climatic conditions in India and the weak public management crisis, you should always get your vehicle covered with a motor insurance in case any natural disaster takes place. Selecting a right motor insurance policy can help you save a lot in the long run in case any unfortunate incident takes place.

Your driving will decide motor cover premium

For The First Time In India, Baiaj Allianz Introduces Telematics To Price Motor Insurance

Times News Network

Mumbai: A device that captures all your driving behaviour, right from how fast you go to when you apply brakes, will now help decide the cost of yo­ur motor insurance. For the first time in India, a private in­surer has introduced telema­tics —the technology of long-distance transmission of in­formation —to price motor in­surance.

The device, which plugs in­to the car's on-board diagnos­tics (OBD), relays information on quality of driving and usa-ge of cars to the insurance company, which uses the data to price the policy at the time of renewal.

Currently, four factors determine pricing of a vehicle insurance — its make, model, year of manufacture and loca­tion. Bajaj Allianz General Insurance has introduced Drive Smart—a policy which, at the time of renewal, will price insurance based on usage. The device and service is available for free to anyone who buys Bajaj Allianz's car insurance with the add-on covers.

"There are many car ow-

Vijay Kumar, president (motor insurance) at Bajaj Al­lianz, said, "The device will work on every car that has been manufactured after 2010 as all vehicles since then are OBD2-compliant." The Bha-rat Stage IV norms, which prescribe standards for car emissions, also include a man­date on on-board diagnostics.

The device connects the car to an app on the owner's smartphone and recognizes when the driver is over-accele­rating or braking suddenly, or if there is a sudden impact. While the telematics helps the Insurance company in gathering data, it provides car ow­ners a host of benefits which until now required a separate payment of a few thousand ru­pees. For instance, the driver can request roadside assistan­ce by tapping a button on the app in the event of an acci­dent.

The owner can also set up notifications for every time the vehicle breaches a speed li­mit or goes outside a 'geo-fen-ced' area in the map. The ow­ner can also share live and sta­tic location of the car with fri­ends. According to Singhel,

The technology will also enab­le the company to come out with a 'pay as you go' auto in­surance plan where the indivi­dual is charged according to how much he uses the vehicle. The add-on covers include round the clock roadside assi­stance, accident insurance, key and lock replacement co­ver and personal baggage co­ver. The add-on covers cost ro­ughly 50% of the basic insu­rance. For instance, if the standard 'all risk' cover on a Honda City is around Rs 9,000, the policy with add-on rates would cost around Rs 14,000.