Car Insurance in India: Car insurance is an important thing for car owners. Insurance helps you to not incur significant amounts due to damage, accidents and thefts. Insurance companies provides full protection for your vehicle in the exchange of regular insurance premium payments.
According to India’s motor vehicle Act, it is compulsory that all the vehicles on road must have a car insurance. Not having an insurance can attract the penalty of Rs. 2000 or inprisonment of 3 years. In this case, it is very important to have an insurance for the vehicle, customers are often found to be confused and doubtful to best insurance type, coverage and other aspects. Here, in this article, we have explained many insurance relates queries of the vehicle owners. Checkout more details in the full story.
Types Of Insurance
Third-Party Liability Insurance
This insurance provides you protection from the damage incurred by you to another person on the road which can a pedestrian and people in other vehicle. Third Party Liability insurance gets you covered from any financial and legal liability.
Comprehensive Insurance
This comprehensive policy provides you the coverage for any damage to third party liability and your own car as well. After opting for comprehensive insurance policy, one don’t need to take stress of any damage to his/her vehicle as all the losses will be covered by the insurance company .
Pay As You Drive Insurance
This type of insurance enables you to pay premium according to the kilometers driven by the person. This insurance is also known as “Usage based car insurance”.
What is No Claim Bonus?
No Claim Bonus is an incentive provided by the insurance company for not making a claim for your car. Usually, the No claim bonus stays 20 percent for the first year, 25 percent for the second and 35 percent for the third year, 45 percent for the fourth and 50 percent for the fifth year.
Doesn’t matter what type of insurance you choose for, every insurance company has some exclusion in its policies. To take benefits of these exclusion, customers need to take some add-ons for their existing policies. Here are some of the best add-on options for the customers.
Engine Protection
This add-on provides you a protection to your car’s engine from waterlogging. If you reside in a location where water logging is a regular issue, then you must opt for this add-on.
Zero Depreciation
This add-on means whenver you make a claim, even though, insurance comapny pays the amount, buy you also need to pay a part of it. This add-on increases the premium amount by 15 percent, but prevents you to incur a huge cost in case of a significant damage to the vehicle.
Return to Invoice
This is one of the best add-on offered by the insurance companies, it means that when you bought a car with all the taxes and registration costs. But it can be claimed only when the car is lost or stolen and this add-on is only applicable on vehicle upto 3 years old.
Voluntary Deductible
Voluntary deductible VD is an amount that policy owner agrees to pay before submitting the insurance claim. This add-on helps to lower the insurance premium for the policyholder.
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER
