10 things about motor insurance

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Motor insurance protects the policy holder from damages from the vehicle as well as damages to others from the accident caused by the vehicle. It is the moral responsibility of the motorist to bear the losses caused to the other party. Third party insurance bears the damages caused to others in an accident. Liability only policy: This policy covers only damages to others from the accident. Package policy: Along with third party damage, own damage is also covered. If you take only liability policy, damages caused to your vehicle is not covered, so a package policy is always better as it covers both you and the other party. Aspects covered in motor insurance: · Fire accidents, blasts, and lightening. · Theft of the vehicle. · Bandh and violent riots. · Earthquakes. · Floods, cyclones, tornadoes, hailstorm, avalanche, etc. ·

Antinational activities. · Transfer through road/rail/air/sea route or lift or elevator. · Landslides. Occasions motor insurance not applicable · Driving without proper driving license. · Driving under the influence of alcohol or other narcotics. · If the accident takes place out of the geographical zone. · Usage of vehicle for antisocial activities. · Electronic or mechanical breakdown. Insurance amount distribution… Own damage · Damage to the insured covered. · According to the motor policy, the IDF is determined based on the true value of the vehicle. · The true value of the vehicle is determined by depreciating the price of manufacturer over time.

Third party…. According to the motor act, every vehicle owner should have this insurance. This policy comes in aid by compensating damages caused to other persons or vehicles. Premium payments: If compensation with respect to only damages from accident needed, several companies are offering different policies. Third party coverage is different with different set of conditions and premium payments. Premiums of two companies cannot be compared. You have to consider the exemptions, and insured value of several policies. A cheaper premium policy may have a lot of exceptions and may turn useless when needed Factors considered while determining premium  Vehicle registration details — engine number, chassis number, vehicle class, capacity, seating capacity which are present in the RC book. · Receipts of tax payment, fitness certificates, driver details, age, qualification, license, etc. Premium rates of own damage cover can be decided by the insurance company. For this, age of vehicle, charges and claim history are considered.

Third party liability premium rates are decided by RDA. Insurance companies will collect penalties to resume a lapsed policy, and they may have the vehicle checked. Policy tenure: · Generally a motor vehicle policy stands for One year and has to be renewed in time. · There are no gracing periods to pay premium. You will lose no claim bonus also if 90 days elapse after policy term. In case of accident: If repairs are needed, insurance company has to be consulted and the vehicle moved to authorize service center. Register FIR in the police station of the area of accident. A checking officer from the insurance company will visit the accident site. He will estimate the mode of accident and damages caused to the vehicle and people and will send the report to the insurance company. Note: · You can take policy from any company or port it to any company. There is no rule that insurance has to be bought from the company suggested by the banker.