In India, having at least third-party liability motor insurance is mandatory. While most car owners know they need insurance, they might not understand all the terms and conditions attached to their policy. If you have ever struggled with deciphering your policy documents, we’re here to help. Here’s a look at the crucial ABCs of car insurance that you must know:
Third-Party Liability Cover
Let’s start with the basics. Third-party liability deals with the part of your insurance policy that covers damages to other individuals or their property. You can get this cover as a stand-alone policy or opt for a comprehensive plan that offers third-party cover along with better coverage.
Let’s see how to claims third party car insurance in India or any insurance as it is as simple as buying a car insurance for vehicle online. In the unfortunate event that your car gets damaged or is stolen or you want to claim for the third party car insurance this is what you should do:
- 1. An FIR (First Information Report) With The Police
- 2. Take Photos Of The Damage And Accident Site
- 3. Note Down Contact Details And Info Of All Involved
- 4. Notify Your Insurance Company
- 5. Submit ALL Required Documents
Below documents need to be submitted to Insurers :
- An insurance claim form
- A copy of the vehicle’s RC (registration certificate)
- A copy of the driver’s driving licence
- An original copy of the FIR (if applicable)
- NEFT details ( owner of the vehicle )
Own Damage Cover
As the name suggests, own damage cover helps with the cost of repairing your vehicle when it gets damaged. Damages caused by accidents, theft, man-made disasters and natural calamities are all covered. If you meet with an accident and your car gets damaged, your own damage cover will help pay for repairs. If another person’s car is also damaged, your third-party liability cover will help pay for the repairs for their vehicle.
Personal Accident Cover
You may not want to think about it, but you may get injured in a vehicular accident. If you do, your personal accident cover will help pay for any medical bills that arise as a direct result of the accident. For an additional premium, you can also opt to get accident cover for passengers in your car.
Insured Declared Value – IDV
Whenever you buy or renew your car insurance policy, you will see something called an IDV. The Insured Declared Value is the maximum amount that your motor insurance provider will pay if your car is totally damaged. So, if your car gets stolen or damaged beyond repair, you will likely receive the IDV amount. Your car insurance provider will decide on your annual IDV by looking at the market value of a new car of the same make and model. Then, they will make adjustments for depreciation.
A deductible refers to the claim amount that the car insurance provider expects the insured to pay. Most insurers have a mandatory deductible of 5-10% on every claim amount. At Edelweiss General Insurance Company, we offer a voluntary co-pay option as well. You can choose to pay a higher deductible each time in exchange for a lower premium amount.
All the best car insurance providers have a network of garages whom they deal with directly. Following an accident, you can opt to get your vehicle repaired at a network garage and enjoy a cashless claim process. Your insurance company will settle the claim directly with the garage later. You only have to pay the deductible and for any uncovered repairs upfront.
When you buy car insurance online, you often see only the basic policies on the website. They offer third-party liability, own damage and personal accident covers. If you want to enhance the protection, you can choose additional covers known as add-on covers. The add-ons come at a cost that gets reflected in your final premium amount.
One of the most common add-ons covers, the zero-depreciation cover protects your wallet against the effects of depreciation. The moment you purchase your car and drive it out of the showroom, its value starts to depreciate. Say you file a claim to replace a part after two years. Your insurance provider will only pay for the depreciated value of that part. With this add-on, your insurer will pay for the cost of a new part without calculating the depreciation.
Before you buy motor insurance, you need to understand the policy. With our ABCs, you can make an informed decision and pick the right kind of policy and add-ons for your requirements.