No motor vehicle can ply in a public place without Third Party Liability Insurance Coverage. The liabilities which require compulsory insurance are:
A comprehensive policy, as the name suggests, offers overall protection against damages to your car that are the result of incidents which is unrelated to an accident/collision. This scheme is extensive and it covers damages to the vehicle, theft, legal liability to third party and cover for personal accident cover. The policy coverage can be further improvised by opting for add-ons like accessories cover, engine protector, zero depreciation cover, medical expenses, etc. This coverage is highly popular since it offers end-to-end coverage and hence ensures less stress for the policyholder.
This includes coverage for: theft, fire, natural disasters like a hurricane or a tornado, vandalism, falling objects, Damage done to your car by animals, civil disturbance, like a riot that results in damage or destruction of your car.
Do you know the NCB slab and Depreciation slab ?
Note: NCB is applicable to the owner and not to the Vehicle, hence if we sold our vehicle we shall transfer the NCB to our new vehicle.
In motor insurance the sum insured is called as IDV “Insured Declared Value” ,The IDV will be reduced based on the age of the vehicle.
Do you know about the important and popular Add on covers?
(1) Depreciation Waiver Cover/Nil Depreciation Cover /Enhancement Cover.
Older the vehicle lower the value; however with depreciation waiver cover the insured can protect himself against depreciation. If he takes this cover, he will be paid full value of the parts without deduction of any amount towards depreciation. This means insured does not have to pay out of pocket towards the replacement of the parts. This cover is available on payment of additional premium and the duration of the cover differs from company to company ranging from 0 to 7 years.
(2) Spare Car Clause
Spare Car Clause provides daily cash benefit to insured conveyance expense in case of breakdown or when the car is being repaired. A fixed sum is provided by the insurance company for hiring a transport while the vehicle is under repair for a valid claim and the repair time is more than 1 day. But the daily cash benefit can be availed only once during the course of the Package Policy towards the cost of making alternative travel arrangements and claims for loss or damage to accessories is not covered under this clause.
(3) Loss of Baggage Cover
This cover provides reimbursement in the case of loss of baggage or damages to the baggage placed in car. The major benefit of taking this cover is that NCB (No Claim Bonus) will not get affected if the insured has made a claim for loss of baggage only without making any own damage claim. Personal effects cover the contents that are personal in nature (cloths, toiletries, shoe, belt etc. that are normally worn on the person) and are placed in a secure baggage. All electronic/electrical items / devices, cell phones, music players, laptops, handheld computing or email devices, cameras of any type, watches and other sophisticated electronic equipments do not form a part of personal effects and are excluded from the scope of this policy.
(4) Engine & Gear Box Protector
The insured need not worry while driving the vehicle through water logged area, since this clause covers expenditure incurred due to damage to internal engine and gear box parts. The consequential damages to the internal child parts of the engine and /or gearbox of the insured vehicle, arising out of water ingression. Hydro locking or repeatedly trying to run a moist engine is one of the major causes of engine failure. Such damage is not covered by a normal motor insurance policy. A dedicated electronic and engine cover add-on is the best way to avoid massive cost repairs and replacement of circuits, which get easily damaged and cost of fortune. With water logging in rainy season across India, this add – on can come really handy.
(5) No Claim Bonus Protection
No claims bonus (NCB) is crucial to reducing car insurance premiums. NCB is earned generally, for every year that a driver has insurance on a car without making a claim, the below mentioned factors are covered under NCB protection add – on cover even though there is a claim.
• Damage to only windshield glass by external object.
• Loss due to accidental external means to parked vehicle.
• Loss due to flood/earthquake/AOG perils to a parked vehicle.
General Insurance
