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- No
car can be driven without insurance.
- There
are two main kinds of insurance covers Motor Policy
A (Act Only Policy or Third Party Insurance) and Motor
Policy B (Comprehensive policy)
- Motor
Policy A liability is unlimited in case of injury
or death, with added premium Fire and Theft can also
be covered A specific claim for this must be made
in the Motor Accident Claim Tribunal by the injured
or legal heir of the deceased against the owner of
the vehicle and his insurance company.
- A
Motor Policy B is a comprehensive policy wherein the
Insurance company compensates the injured against
loss / damage to the vehicle as a result of accident
fire, theft, earthquake, riots, strike, floods, terrorism,
loss during transit by road, rail elevators etc. Extra
fittings such as music system, Air-Conditioner etc.
can also be covered.
- A
policy is valid from the moment a premium is required
to midnight exactly a year later.
- It
is advisable to get a policy renewed well in advance,
as there is no grace period whatsoever and the fines
on driving without insurance are severe.
- The
policy is deemed to be renewed from the day that the
cheque for the premium is posted by the bank. It is
therefore advisable to get a receipt for the same
from the bank.
- A
vehicle purchaser should inform the insurance company
within 14 days to have papers transferred to his name.
When a vehicle is sold, the previous owner should
inform the insurance company of its sale too.
- A
vehicle owner is eligible for a no-claim bonus which
is adjusted against the premium for his new vehicle,
even if past vehicle has been sold, being that the
new vehicle is purchased within a period of three
years.
Claims
- The
owner / driver should approach the nearest office
of the insurance company for a spot survey, so that
there is no dispute later regarding the cause of the
accident, the level of damages etc.
- A
report must be filed with the local police station
and insurance company within 24 hrs.
- If
there is no office of the insurance company nearby,
any other subsidiary of the GIC can be connected,
namely New India Assurance, Oriental Insurance, United
India Insurance, National Insurance - In case none
of these offices can be contacted, a licensed surveyor
can be contacted but in any case, the insurance company
too must be informed - this can be done even on public
holidays.
- After
the spot survey, the papers for the claim must be
filed, and the vehicle should be assigned to a garage
- these claims will be entertained after the insurance
company deputes its surveyor for the final assessment
on the basis of repair charges, cost of parts etc.
- Rubber
and Plastic parts, tyres, batteries are calculated
at 50% depreciated value Glass at 100%. All other
parts and extra fittings at 5% depreciation per year
upto a maximum of 50%.
- Loss
due to mechanical / electrical failure, routine wear
and tear is not included in a policy.
- If
the driver is under the influence of alcohol during
the time of the accident, no claims are entertained.
- No
Claim discount in premium is calculated on 'own damage'
component of the policy. Under comprehensice policies,
this discount is permitted if no claim is made during
the year. It increases each year with a slab starting
from 15% for the first year and reaching maximum upto
50% by the fifth year.
- This
rebate is adjusted against the renewal premium. In
case a policy expires but is renewed within 90 days
of expiry, the no claims bonus already accumulated
does not lapse.
- If
the claim is made during the first year, then extra
premium at 15% will be charged at the time of renewal.
It will go on increasing as per the prescribed slab
(maximum upto 40%) for claims preferred every year.
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