1 .What are the common types of motor insurance?
Ans:
The two common types of motor insurance are third party insurance policy and comprehensive motor insurance policy.
2 .Should I buy Motor Insurance? What Motor Insurance cover should I buy- should I buy Comprehensive Insurance or Liability Policy only?
Ans:
All cars, bikes, scooters and trucks plying on Indian roads need to have a valid motor insurance policy. If you don’t buy motor insurance for your vehicle, you will defy the Motor Vehicles Act, 1988 and will be liable to pay a fine of Rs 2000 or get jailed for up to three months.
Third Party Liability insurance is mandatory for all vehicles plying on public roads in India. This covers Liability for injuries and damages to others that you are responsible for. In addition, it is prudent to cover loss or damages to the vehicle itself by way of Comprehensive/Package policy, which covers both “Liability” as well as “Own damage” to the insured vehicle. Liability Only cover is also known as Act Only cover.
3 .What is covered under vehicle insurance policy?
Ans:
List of things covered under vehicle insurance policy –
∙Accidental damage
∙Burglary, housebreaking and theft
∙Terrorism
∙Natural calamities, fire and explosion
∙Malicious acts
∙Legal protection for damage to third party; injury/death claims from third party; legal costs and expenses
∙Personal accident cover.
4 .What not covered in vehicle insurance policy?
Ans:
Here’s a list of things not covered under vehicle motor insurance –
∙Any mechanical and electrical breakdown
∙Depreciation, wear and tear or any consequential loss
∙Damage caused to an individual driving a vehicle under the influence of alcohols/drugs
∙Damage caused to an individual driving a vehicle without a valid license
∙Loss or damage caused due to radioactive or nuclear-related activities
∙We have not intentionally damaged
5 .What is the period of the policy?
Ans:
A motor policy is usually valid for a period of one year and has to be renewed before the due date.
Pay the premium on time. No Insurer offers a grace period for paying the premium. In case of lapse of policy by even one day, the vehicle has to be inspected. Moreover, if a comprehensive policy is allowed to lapse for more than 90 days, the accrued benefit of NCB (No Claim Bonus) is also lost.
6 .What is "No Claim Bonus"?
Ans:
No Claim Bonus (NCB) is the benefit accrued to an insured for not making any claims during the previous policy period. As per current norms in India, it ranges from 20% on the Own Damage premium (and not on Liability premium) and progressively increases to a maximum of 50%.
If, however, a claim is lodged, the No Claim Bonus is lost in the subsequent policy period. NCB is given to the insured and not to the insured vehicle. Hence, on transfer of the vehicle, the insurance policy can be transferred to new owner but not the NCB.
7 .Can I transfer my insurance to the purchaser of my vehicle?
Ans:
Yes, the insurance can be transferred to the buyer of the vehicle, provided the seller informs in writing of such transfer to the insurance company. A fresh proposal form needs to be filled in. There is a nominal fee charged for transfer of insurance along with pro-rate recovery of NCB from the date of transfer till policy expiry. It may be noted that transfer of ownership in comprehensive/package policies has to be recorded within 14 days from date of transfer failing which no claim will be payable for own damage to the vehicle.
8 .What documents are required to file a car insurance policy claim in case of accident?
Ans:
For most of the motor insurance providers, the documents mentioned below are required. Although, read the fine print of your policy carefully and cross-check.
∙Duly filled claim form
∙Photocopy of automobile’s Registration Certificate
∙The original estimate of loss-given by the garage mechanic
∙Original invoice and payment receipt of the repair. If you have availed the cashless facility, repair invoice is required to be submitted.
∙FIR is required
∙Copy of driving license.
9 .What documents are required to file a car insurance policy claim in case of death?
Ans:
Submit the duly filled in claim form with the following documents:
∙Original Death Certificate
∙Post Mortem Report
∙Inquest report
∙Accident report
∙FIR/MLC copy
∙Hospital records
∙News Paper cuttings if any and any other relevant records Chemical Analysis Report if available English Translation of vernacular documents
∙Latest IT return to show Proof of annual income
∙Succession Order/legal heir certificate/legal documents to establish identification of legal heir in the absence of nomination under the policy.
∙Original Hospital Bills
∙Advance and final receipts (All receipts shall be numbered, signed and stamped)
∙Photocopy of RC, driving license.
