Coverage Of Motor Insurance in India Claim And Renewal
Coverage Of Motor Insurance in India Claim And Renewal.Car Insurance is unarguably significant while owning a car in India. Apart from making sure that you adhere to the law it also safeguards you in situations of accident, theft or damage. It is helpful whether you are buying a motor insurance policy for the first time or simply renewing an existing one to be aware of the aspects that motor insurance covers, How the claims process works and the process of renewal.
Here is the detailed information on various types of motor insurance in India, what they offer, how to claim and how to renew.
It is to note that in India, there are mainly four types of motor insurance policies which are grouped as follows;
Before diving into coverage and claims, it’s important to understand the two primary types of motor insurance available in India:Before diving into coverage and claims, it’s important to understand the two primary types of motor insurance available in India:
1. **Third-Party Insurance**: This is the basic policy that is mandatory by Indian laws. It pays for a third party’s (another car, a person or something else) losses in a crash occurred with your automobile. But it does not include the damages to your own car or to you.
2. **Comprehensive Insurance**: A comprehensive policy offers wider protection as it caters for third party risks, the car’s own damage in an accident, theft, naturals disasters, manmade disasters namely, riots and vandalism and personal accident. This is more secure for the company in question as it provides better for financial securities.
Both Kind of insurance is necessary but the comprehensive insurance is advisable because of the cover it offers. Well, let us provide the coverage details on the same with additional information.
Nature of Risk Covered Under Motor Insurance in India
Some of the policies that may be covered under motor insurance includes;basic policy, comprehensive policy and third party policy. By way of illustrating the detailing of a third-party and comprehensive insurance policy, here is how the companies cover:
**1. Third-Party Liability Coverage**
This covers:
– **Bodily Injury or Death**: In case your car is involved in an accident which results in harm or loss of life on the part of the third party then your insurance will cater for expenses incurred in compensating the harmed party. The amount is controlled by the level predetermined by the Motor Accident Claims Tribunal.
– **Property Damage**: It includes a liability part, which protects third party property however there is a limit placed on the amount of compensation ranging from ₹ 7.
Third-party insurance on the other hand does not offer cover on any loss or damages to the client’s vehicle or on any injury on the owner-driver.
**2. Own-Damage Coverage (Comprehensive Insurance)**
There are many and varied circumstances which are included under a fully comprehensive motor insurance policy in relation to your own vehicle. This includes:
– **Accidental Damage**: If your car is damaged in an accident you get a replacement regardless of who was at fault.
– **Theft**: In case of theft of your car, the insurance company will compensate you with the market value of the car, which is also the IDV.
– **Fire Damage**: Damage suffered as a result of fire, explosion or any harm resulting from Lightning.
– **Natural Disasters**: Losses that occur as a result of natural disasters like floods, earthquake, cyclones and storms effects are also catered for.
– **Man-Made Disasters**: This comprehends riots, strikes and all other types of civil disturbances that result in destruction or loss of the vehicle in question.
– **Personal Accident Cover**: Many of the comprehensive policies provide for personal accident cover for the owner of the vehicle. This includes any fees for treatment in the event of an injury, loss of capacity or death due to an accident.
– **Add-On Covers**: These are not compulsory but when fitted make the car more secure. Additional covers that are often opted for are the zero depreciation cover, the engine protection cover, the roadside assistance and lastly the consumables cover.
How to File a Motor Insurance Claim in India
The thought of making a motor insurance claim can seem like a daunting task, but if one has to do it the right way it is relatively hassle-free. Claims can be categorized into two types:Claims can be categorized into two types:
**1. Third-Party Claim**
If the latter is the case then, the third party will make a claim against your policy if their vehicle was damaged by yours. You will need to:
– It’s essential that the insurance company and the police are notified of the accident as soon as possible.
– Other documents which should be availed include the first information report (FIR), driver’s license, and registration certificate (RC).
– The case will be tendered before Motor Accident Claims Tribunal in which the amount of compensation is determined.
**2. Own-Damage Claim (Comprehensive Insurance)**
If your own vehicle is damaged, here’s how to file a claim:If your own vehicle is damaged, here’s how to file a claim:
– **Step 1: Inform the Insurance Company that an adjustment has to be made into the insurance plan.
You should talk to your insurance company right after the accident, the soonest possible time within a day. Give them all the relevant information that will include the date, time as well as the location of the accident.
– **Step 2: File an FIR only if the e-commerce company or seller has not responded to the complaint appropriately.
But if it’s major or if your car has been damaged by third party or if there was injury involved, you need to lodge an FIR at the police station.
– *Step 3 – Submission of Document*:
The insurer will ask for several documents, including:The insurer will ask for several documents, including:
– The original duly filled up and signed claim form
– If any Copy of FIR has been filed then the sameべき Copy of FIR
– Photo copy of your driving license
– A notarized copy of you vehicle’s registration certificate
– Original repair bills and receipts – if you have ever to undergo a repair on the vehicle.
– Policy documents
– **Step 4: Survey of Damages Also known as a Loss Analysis Survey.
The insurance company will dispatch a surveyor to go and access the extent of the damage on your vehicle. A surveyor must assess the damages before one moves the vehicle or attempt to start a repair process.
– *Step 5 Settlement of Claim:
Once the surveyor finishes his or her job, your insurer will either give the garage permission to repair it cashless claim or you are expected to pay for the repair costs before your insurer reimburses you the money reimbursement claim.
Besides FIR, when there is a theft, you also require the non-traceable certificate from the police stating that the vehicle stolen cannot be tracked.
Coverage Of Motor Insurance in India Claim And Renewal
Motor Insurance Renewal Process in India
Motor insurance policies stand for one year or such time depending on the terms of the policy which require renewal. Lapsed Motor Insurance means that the insurance is not renewed hence you are not protected financially and legally. Here’s what you need to know about the renewal process:Here’s what you need to know about the renewal process:
**1. Renewal Before Expiry**
In any case, it is more advisable to renew you policy before the current one expires. Normally through a short code message or through an email, the insurance companies notify you when the policies are about to expire.
It means the policy holder can renew his policy either through online mode or through off line mode. They also provide policies to renew through the internet which is faster, efficient and enables one to shop for premiums and modify coverage where necessary. It is as simple as going to the website of your insurer or using the latter’s app on your device and inputting your policy information and paying for the premium.
**2. Renewal after expiration period is also known as Grace period Since the name suggest it can be interpreted as renewal after the stipulated expiration of time to pay the amount has lapsed.
But if you don’t remember to renew your policy before the due date, most insurance companies provide a 15-30 days grace period. In this phase, one can communicate to the insurance company to reinstate the policy and get the policyholders’ privileges including the NCB. However, during the period that is usually referred to as the ‘grace period’, your vehicle will not be insured in case of damages or accidents.
If you fail to renew within this period then the policy is said to have lapsed and you will have to acquire a new one. Furthermore, before one is offered a new insurance policy, he or she may have to take a vehicle inspection.
**3. No-Claim Bonus (NCB)**
Another advantage of renewing your policy on time is the standing of a no-claim bonus. NCB stands for ‘No Claim Bonus’ where a driver is rewarded for not filing for accidents during the policy period and it has the potential of lowering your premium by up to 50% in the course of time. To retain that benefit, it is necessary to renew the policy before its expiration date strikes.
**4. Check Your Policy and Update It If Necessary
It’s always good to take this opportunity to review your policy when you are renewing your policy. This is the right time to reconsider the IDV of your vehicle, inclusion or exclusion of certain coverage and may even change your insurance provider if the new plans seem more beneficial than the current ones. Selecting various quotes helps one to obtain the most adequate insurance at the right price.
Conclusion
Motor insurance policy in India provides basic cover against third-party risks as well as own damage to vehicle. It is very vital that you learn about the various types of coverage, how to go about filing a claim, and even the necessity of renewal. This is a very essential product when you own a car whether its purpose is to shield you from the legal consequences of an accident or to make sure that your car is insured as it should be.
To avoid any gap in coverage, it is important that you keep yourself updated about the process of claims and renewal of the motor insurance policies in India and get the maximum benefit of it.