Insurance

Vehicle or Car insurance is specifically generated for those who intend to use it for their personal use. You might have interest in getting a car loan for your immediate use in lieu of regular monthly payments within a specified time-frame. Car insurance is also known as “gap insurance” or “motor insurance” & the policies can be acquired for two-wheelers, private cars, buses, trucks or other transport vehicles. The policies can be in the form of a “First party policy” or “Third Party policy” and they provide financial protection from physical damage of vehicles due to an accident and also for the liabilities that occur due to such collusions. While driving, the driver may face accidents & liabilities may arise due to such accidents including the damage of the vehicle. The third party liability, the damaged vehicle-all is protected by your motor insurance policy. You will find many automobile insurance companies offering online/offline Car Insurance policies for your vehicle. In India, by virtue of laws, it is mandatory for all types of car owners to have the automobile insurance policy for their vehicles.

Some key factors for Vehicle insurance

• Whether the car is a new or used one.
• The track record of past accidents of the car driver, if any.
• As the prices of the cars are soaring higher, the premium of the insurance policies are also increasing.

How to file for an Insurance claim?

When the driver faces with a car accident, he should immediately approach to the nearby police station and launch an FIR & submit some related documents to the insurance company along with properly signed Claim form. Some of the related documents are-

• Policy copy.
• Driving Licence copy.
• FIR copy.
• Original estimates about the loss.
• RC copy of the Vehicle.

Different Kinds of Auto Insurance Policies

1. Damage of the Property: – Coverage is likely to be paid for accidental damage to other vehicles caused by insurance holder.
2. Body injury costs: – Legal & medical defence expenses against any accident in which the policy holder is legally responsible.
3. Medical Treatments: – Coverage is also there for medical expenses of the driver & the co passengers due to an accident.
4. Coverage for Collision: – Coverage is also available for damages caused to own vehicle.
5. Comprehensive Coverage: – In addition to above, a comprehensive coverage is also available for cars for theft, fire, act of nature and collision with animals.

Different types of Auto Insurance in India

1. Two-Wheeler insurance: – It covers accidental damage of the car and the driver and premium of the policy is calculated as- Current showroom price X Depreciation rate as fixed by tariff advisors.
2. Private Car insurance: – Due to legal requirements it’s a rapidly growing sector. Insurance premiums are determined by the authorities of the respective states in which the car is registered & the premium gets calculated on the make, value and the year of manufacture.
3. Commercial Vehicle insurance: – Commercial vehicles like buses, trucks etc. are covered with commercial vehicle insurance and their premiums are calculated on the basis of showroom price, make, year & place of registration.

Losses beyond the coverage of Motor Insurance

• Consequential losses.
• Depreciation.
• Mechanical and Electrical breakdown.
• Vehicle used outside of the geographical area.
• Drunken driving.

This entry was posted on Thursday, December 22nd, 2011 at 5:37 pm and is filed under Car Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.