From the more frequent, “Why do I need car insurance” to the less common, “Can I transfer my existing motor insurance policy to my new vehicle?”, we have all had questions about car insurance at some point in our lives. Whether we are buying motor insurance ourselves or helping someone else in their motor insurance purchase journey, we can have several questions related to car insurance. One may think that while some of these questions are important, some others are just plain silly. But that’s not what we think. We believe that any car insurance question—big or small—is important, and, therefore, needs to be addressed. We have tried to include as many questions as possible that you may encounter while purchasing car insurance.
Car insurance in India is mandated by law. According to Motor Vehicles Act, it is compulsory for vehicle owners to have third-party car insurance which protects policyholders against third-party insurance claims for property damages, death and bodily injuries. Even though it is mandatory, a car insurance policy is important as it protects motor insurance policyholders against financial risks arising from accidents.
While third party car insurance offers coverage to third party and their vehicles, comprehensive car insurance offers coverage to the motor insurance policyholder and their vehicle, along with third party coverage. The type of car insurance coverage you should opt for depends on various factors such as the age of your vehicle, your vehicle usage. Opt for a car insurance policy that will offer you the best coverage at an affordable cost. While comprehensive car insurance is more expensive than third party car insurance, it also offers added protection to you and your vehicle, thus making it a better choice.
Motor insurance companies consider several factors while calculating your comprehensive car insurance premium. These are Insured Declared Value (IDV) of your vehicle, age of your car, No Claim Bonus (NCB) discount accumulated on your motor insurance policy. On the other hand, the premium for third-party motor insurance premium is fixed by IRDAI.
Add-on covers fill any gaps in your motor insurance policy coverage. Add-on covers or riders will cover certain risks or conditions not included in your base motor insurance package policy. These come at an additional cost and should be purchased as per need. The importance on add-on covers depends on the need of the policyholder. For instance, if someone lives in a flood-prone city like Mumbai, it is recommended that they buy an engine protect cover that provide cover against damages to engine due to ingress of water which is excluded in comprehensive policy.
Yes, your existing car insurance policy can be transferred to your new vehicle. You need to contact your car insurance company to enquire about the process. By transferring your current car insurance policy, you might even get to retain the benefits of your No Claim Bonus discount. You only have to pay the difference between the new car and old car insurance premium.
Yes, it is absolutely essential to transfer the motor insurance policy from the previous owner to the new car owner when one is buying a used car as it is a very important step. At the time of reviewing claims, the motor insurance company checks whether the name on the registration certificate matches with the name on the car insurance policy, and if a difference is found, the claim is rejected. A few days are given to transfer the car insurance policy in the existing vehicle owner’s name.
It is recommended that you inform your motor insurance company about installing a CNG or LPG kit in your car as any modification carried out mid-policy might affect coverage.
Your car insurance provider should be notified of any such major modification to ensure you have complete coverage and avoid hassles in claim settlements. Further, it is recommended that you get such kits from authorised car dealers.
Yes, you are eligible to earn discounts on your car insurance premium by accumulating the No Claim Bonus. This is between 20 per cent and 50 per cent depending on number of claim free years.
The views, thoughts, and opinions expressed in the artefact above are for marketing purposes only. Before concluding the sale, please refer to policy wordings and prospectus
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