What are the Features of Car Insurance Policy?
It is crucial for car drivers to know and understand the features of car insurance to make the most of it.
Third-Party Liability:
This policy covers any bodily injury or death or property damages of any third party that may arise out of an accident with your insured car. The Motor Vehicle Act mandates having this motor insurance policy for every car owner, and in its absence, you will have to pay a penalty if caught by the traffic police. The policy does not cover any damage that is done to your vehicle.
Comprehensive Car Insurance Policy or Package Policy:
It protects you and your vehicle against a number of risks along with third-party liabilities. Any damage caused to the vehicle due to an accident, theft, natural calamity or man-made disaster is covered. Likewise, the death of the driver and/or passengers inside the vehicle in the event of an accident are covered. Though not a mandatory policy, it is advised to have comprehensive coverage for your vehicle.
Insured Declared Value:
IDVor the Insured Declared Value of your car is the sum you can claim in case of total loss or damage to your car. IDV is calculated on the basis of its depreciation rate. Calculated basis manufacturer’s listed selling price after deduction of depreciation as per age of the vehicle.
Premium:
It is the amount you pay for the insurance. It depends on many factors like the model and age of the car, its fuel type, the city where you reside, your age, profession, etc. You can use your NCB points and other discounts to cut down on your premium.
Cashless claim:
If you get your car repaired at one of our network garages, you will not have to pay for it. The repair bill will be taken care of by us. This facility is referred to as cashless claim.
What is Covered in Car Insurance Policy?
Accidents:
Any damage done to your car because of an accident is covered against any expenses towards repair or replacement. You can get it repaired at one of our cashless network garages, while in case of total damage, you will receive the IDV of your car as reimbursement.
Loss or damage due to natural disasters:
Damages caused to your car due to any natural calamity like floods, typhoon, hurricane, tsunami, lightning, earthquake, landslide, etc., are covered.
Loss or damage due to man-made disasters:
Damages caused to your car due to any riot, vandalism or any malicious acts are covered. Any damage that occurs in transit by road, rail, air or elevator, is also part of the policy’s coverage.
Theft:
The insurance policy covers your losses if your car gets stolen.
Personal accident cover:
This policy covers the expenses of the owner-drivers in cases where they get injured (or death) while driving the insured car. A similar cover for the co-passengers of the car is available and can be added to the policy by paying extra premium.
Third-party legal liability:
If a person, vehicle or property gets hurt or damaged due to an accident with your car, you stay protected against liability due to accidental damages.
What is not Covered in Car Insurance Policy?
A car insurance policy does not promise that your claims will be settled by the insurer. Your claim request can get rejected in the following situations:
Drunk Driving: If you are caught driving under the influence of alcohol or any other intoxicating drug, you will not be covered by the policy. It is also a punishable offense.
Depreciation or any consequential loss: Any subsequent damage, which may occur as a result of the original damage, is not covered. Similarly, loss due to depreciation of the car’s value is not a part of the policy coverage
Damage due to negligence: If your car gets damaged because of negligent behavior, like driving it through a waterlogged lane or if the damage seems intentional, the policy will not cover you
No requisite add-on cover: Some damages are covered only if you have a certain add-on cover. In absence of that, the standard policy will not cover such damages
Breach of any term or conditions: Going against the policy wording like using your personal vehicle for commercial purposes can jeopardize your policy coverage
Normal wear-and-tear of the car parts and any mechanical or electrical breakdown is not covered
Loss or damage due to war or nuclear risks is also not covered
The fixed amount that gets deducted at the time of the claim, known as compulsory deductible, will not be paid by us
It’s important to note that the depreciation cover is not applicable in cases of theft or total loss claims