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.

How to effectively administer your Company’s Corporate Motor Insurance Scheme

When you are not primarily an insurance company, administering a corporate motor insurance scheme can be a very serious challenge. This becomes even harder if you have a large fleet of company cars, in addition to a staff motor insurance scheme mediated by the company. Insurance, especially when handling claims, can be such a hustle for someone who is primarily in Administration, Finance, Procurement, or HR, depending on the company. We have prepare a small cheat sheet that can help you to take charge of your company’s motor Insurance Scheme and give you that satisfaction of being “on top of things” Here is the list

1. Take Charge!

The number one cause of stress for employees who manage motor vehicle insurance issues is lack of clarity on who is in charge of what. The process of coordinating motor insurance concerns usually involves at least all the departments we listed above, and depending on the organization, the person who is in charge may be in any one these departments. If you are involved in the process but it is unclear who exactly is in charge, then you have two options. First, you can decide to seek clarity from your boss as to where the buck stops when it comes to the company’s motor insurance scheme. If your boss doesn’t know, you may be in trouble, but work towards clarifying who is in charge of it. The second option is to take charge. Many workers fear additional responsibilities and then go ahead to waste good energy scheming how to avoid the work. If you take charge of it, officially or otherwise, you will have control over it and it will make it easier to administer the scheme.

2. Draw a Map

Secondly, draw a process map that shows how each process should be handled. If you are not into maps, you can use a list showing all steps each case goes thorough before it is resolved. Process maps (or their equivalent) can help you to

Figure out what needs to happen at every stage and are a good way of measuring your progress down the line. The only predictable thing when it comes to insurance is when you need to pay your premiums. You can never plan when to make claims because they result from accidental events. A process map will make you ready to handle any unforeseen situation with clarity, and without the need to figure out everything each time something happens.

3. Use Checklists

The beauty of everything in insurance is that the processes used by insurance companies are very well mapped out. It is possible to develop checklists to help you handle every claims process, or every motor insurance procurement process. Checklists will help you to be certain that you have done everything required, and you will not need to spend time thinking through every process you need handle. For instance, you may have all the documents needed to file an application for motor insurance cover committed to memory. If you do not translate that to a checklist, you may miss one of the important documents simply because you have no method of verifying that you have filed all documents. Then again, since you don’t fill these forms on a daily basis, it is easy to forget a small detail in the forms. A checklist will eliminate all the stress you may experience in such situations.

4. Keep all Relevant Documents at Hand

This tip is almost a no brainer, but most people simply assume that they have access to everything they need. Imagine you are applying for motor insurance for company cars, or your company has hired a new manager who is supposed to be enjoined in your company’s motor insurance scheme. Would you prefer to go searching for the proposal forms in last year’s emails or would you prefer getting the forms from a folder on your computer called, “Insurance forms”? Collect all relevant documents and keep them in a folder that is easily accessible so that you save the time you otherwise will spend trying to locate important documents. At the risk of being repetitive, it should be noted that accidents do not follow a schedule, and hence you need to have everything at hand in anticipation for any eventualities.

5. Use Productivity Tools Such as Online Quote Form

If you are charged with procuring insurance for new employees, you will benefit a lot from productivity tools that make it easier for you to get the job done. For instance, you can easily get insurance quotes from several insurance companies in Kenya by simply filling the auto insurance quote. The form will make it possible for you to compare quotes in real time, and will make it easy to submit your contact details to an insurance company of your choice. From then on, the motor insurance company will get in touch with you to process your application. Using such productivity tools can drastically ease the entire work of administering your company’s motor insurance scheme.

6. Build a Relationship with your Insurance Agent

Another tip that you can use to make it easy for you to administer your motor insurance scheme is to forge a strong relationship with your insurance agent. Your agent can help you to hasten the processing of your applications and your claims. Just get in touch periodically whether you have any needs or not. Send thank you messages, share calendars and jokes, and generally show concern for them. When the inevitable happens, you will have an ally. 

7. Educate your Staff

The final tip we have is for you to educate you staff in insurance matters. Make a point of raising one motor insurance related issue with all members of staff at least once a week. Education in this case does not mean organizing training seminars to talk about motor insurance. What it means is that you empower your staff members to make smart choices around insurance issues. If they need your intervention less because you have empowered them, you will have succeeded in making you auto insurance scheme easier to administer. You can do this by sending then interesting articles on mail, sharing insurance resources, and having personal discussion on insurance with those who make queries.

[Source: http://www.insureafrika.com/car-insurance/basics/how-to-effectively-administer-your-companys-corporate-motor-insurance-scheme]

Why Should You Have Vehicle Insurance?

How can we help you with vehicle insurance today?

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!

Types of Motor Vehicle insurance Policies in India

Since its invention, the vehicle has proved to be a great gift to mankind. It not only offers comfort but gives you a sense of power. But, we all know, with great powers, great responsibilities are associated. And in this case, a major responsibility is buying a vehicle insurance policy.

Why is it Important?

As per the Motor Vehicle Act of Indian legal system, third party liability insurance is compulsory for every vehicle that runs on the road. Permanent injury or/and death of a third party is covered by third party insurance. Damage to a property of third party also comes under this liability. An individual has to pay a fine of up to Rs. 2000 or serve the term of 3 years in jail or both if his/her vehicle is not insured.

If we talk about the benefits to the vehicle owner, s/he gets rid of the worries related to repair in case of an accident. Not only a lot of money is saved, but the hassles related to the repair process are also managed. A lot of companies are also offering roadside assistance to help the car drivers in case an accident takes place. The vehicles are also covered against natural disasters and human calamities, which further adds to the importance of insurance.

By the type of vehicle on the roads, there are three types of motor insurance popular in India.

Car Insurance

With India being the sixth largest manufacturer of cars in the India, the number of cars on the roads ought to be massive. This is also the reason car insurance is the most popular form of motor insurance in

the country. The car insurance covers legal liability to a third party due to accidental damages. Damage or loss to a vehicle due to man-made or natural calamities is also covered in most of the policies. The policies also offer personal accident cover, along with optional cover for co-passengers.

A lot of car manufacturing companies are offering insurance in a bundled form with the new cars. Let’s have a look at some major features of car insurance policies available in the market.

[Source: https://www.comparepolicy.com/blogs/types-of-motor-vehicle-insurance-policies-in-india/]

Key factors to look for in a motor insurance

With any policy document the major part of it is the legal terminology. As most of us aren’t familiar with the legal terminologies stated in the documents we often misread or misunderstand some aspects of the insurance. The same thing happens in motor insurance policies. The individual end up buying a motor insurance policy with limited knowledge and understanding of the coverage and eventually face problems while the claim settlement. However all the companies having a website available with complete product details, it has become easy for any individual to understand various aspects of the motor insurance policy. Moreover with the insurance compare websites, the individual not only buys a motor insurance but also gets a better idea and understanding  of the features if  the policy. He can also compare the similar insurance plans offered by different companies in the market. But to ensure that you are getting the best motor insurance online the individual must consider some key factors which are stated below:

What are the key factors an individual should look for? Take a look.

Cheap isn’t always the best:  motor insurance premiums play an important role in the mind of the insurance buyers. The rate of the premium is something that an individual should look at before deciding on which insurance to buy from which agent, but it is not the only singular factor.  Due to the concerns around the affordability, most of the individuals opt for cheap and affordable policies which turn out to be heavy on their pocket in the claim situation. The cheap insurance may not always provide sufficient coverage in case of the unseen circumstances.

Comparing of different features of different car policies:  the sole purpose of getting a motor insurance is to protect you against the financial loss in a situation of crisis like an accident or any mishap. Therefore make sure that you have conducted a comparative study of benefits along with the benefits of different car insurance policies available. A comparative study will not only help you  in getting an affordable car insurance premium but you may also find you more benefits in form of coverage and the claim settlement.

Opt for deductibles when you buy a car insurance policy: by including the deductibles in the car insurance policy he tends to automatically reduce the premium amount. As a result the individual needs to pay fewer premiums which would have otherwise gotten higher.

Look for discounts: when the person is doing comparison for the motor insurance, enquire about the discounts that are available on the motor policies which suit your budget. Also look for the eligibility criteria for the same.

Claims settlement ratio:  At the end of the day the key purpose of the motor insurance is to give you financial security during the crisis situation like accident. Therefore before the individual needs to pay for car insurance premium ensure that the insurance company you are planning to choose has a good claim service record so that you are not disappointed at the time of the claims. 

A Few Facts About Vehicle Insurance