Owning a car has become a necessity, at the same time, it is important to choose the right insurance policy. Four-wheeler insurance is mandatory in India; failing to do so might put you in legal trouble. Hence, it becomes important that you get your car insured after purchasing it; the first thing you need to do is to choose the right insurance plan. There are two types of insurance policies that are available:
Third-party Insurance- As per the Indian Motor Vehicle Act, third-party insurance is mandatory. In case your vehicle meets an accident and there is damage, then this policy provides complete coverage to the damage caused by the insured vehicle to the third-party. But for this, you need to make a claim at the right time, follow the right protocol. To choose the best third-party insurance, it is important to know about the types of car insurance offered by the different insurers and financial institutions. The best part is that many banks and non-banking financial institutions are offering third-party car insurance. You can pen down the popular options and choose the best one based on your requirement.
Comprehensive Car Insurance- As evident from the name, this insurance policy provides holistic coverage of insurance to both parties, i.e. the insured and the third party. This policy gives more extensive and wider coverage, and hence, you must go for it. In case of an accident or mishap, comprehensive car insurance saves you from financial catastrophe.
Coverage under Comprehensive Insurance
If you opt for a comprehensive car insurance policy, then it will provide coverage to the damage caused by:
- Damage to third-party
- Damage caused by natural disaster or severe weather conditions
- Damage or destruction of the vehicle in riots or civil disturbances
- Damage to the vehicle caused by a fallen tree
Things that are not a part of Comprehensive Car Insurance Coverage
There are certain things that are not covered under this policy, and if you are planning to invest in comprehensive car insurance, then you check for the following:
- Wear and tear of vehicle is not a part of it
- Damage caused due to drunk driving
- Damage caused when a non-licensed person is driving the car
- Electrical or mechanical breakdown
- loss or damage caused by war, or mutiny
- Damage to the tyres and tubes, but if the vehicle is damaged at this time, then the company will be liable to pay a replacement cost of up to 50%
Points to consider before Buying Car Insurance
This was the key information about the car insurance policy. If you are planning to buy one, then you must keep the following points on your radar:
- Do thorough research about the various car insurance provider
- Get a complete understanding the car insurance policy
- Check the premium and the coverage before investing in the policy
- While choosing the car insurance service provider, you must also check the claim settlement ratio. If the company has a good track record of settling the claim, you can go ahead with it.
Nowadays, it has become easier to apply for a car insurance policy. Most of the banks and insurance providers now offer an online process of insurance completion, so you can complete the process digitally.
Car Insurance Claim Settlement
In case there is need for claiming the insurance, then you have to submit the following document to complete the claim process:
- A copy of the insurance policy
- FIR report filed at the police station
- Registration certificate of the car
- Additional documents in case you need additional reimbursement
- Medical report in case physical injuries are incurred
- Original record or other expenses
- The images of the damage of the car
Note: Remember to claim for the insurance within 24 hours of damage to the car; delaying the same can impact the seamless processing of your insurance claim.