GENERAL INSURANCE BLOG

Whether a two-wheeler or a four-wheeler, owning a vehicle is a matter of pride and sheer joy. When choosing your vehicle, the engine capacity, mileage, pickup, and colour are some of the few factors you consider. One lesser talked about or thought about aspect is your motor insurance. Choosing the best motor insurance company in India should be your next priority after finalising the car because your dearest asset needs a reliable safety shield.

There are various hidden conditions and additional costs associated with insurance. It may be in the form of add-ons or premiums, but more often than not, we are confused about the final payments and all the benefits of getting motor insurance.

In today's article, we will talk about deductibles in car insurance and all you need to know about it.

What are deductibles?

An amount you are liable to pay from the total claim amount is known as deductibles in car insurance. Typically, if the repair costs you twenty thousand and the deductible is two thousand, you will have to pay two thousand, and the insurer pays the remaining eighteen thousand.

The higher the deductible amount, the lower your overall premium amount will be. Although promising a higher deductible would mean you will have to spend money from your pocket. Hence, analysing your monetary situation and the ability to pay the deductible is crucial to understanding the amount you might have to pay in case of accidents or damages.

Types of deductibles.

There are two types of deductibles from which you can opt from:
1. Voluntary deductible set by yourself
2. Compulsory deductible levied by the insurer

What is a voluntary deductible?

The amount you decide to pay from your pockets, depending upon the total insurance amount, is a voluntary deductible. As the risk that the insurer will take is lower, voluntary deductibles are a great way to get your premium lowered. Opting for a higher deductible will bring down the value of your insurance premium amount.

Before finalising your policy paper, deciding on a deductible amount you will pay yourself in case of any damages is imperative. This deductible is applied to every claim made after activation of the insurance.

What are compulsory deductibles?

The policyholder is not the one making decisions on these deductibles. The insurance board of India has set a value based on the engine's power or CC in these vehicles. It can vary from anywhere between one thousand to two thousand rupees. The premium amount stays unaffected irrespective of the compulsory deductibles.

When buying car insurance, two costs primarily add up. The first is the premium amount you have to pay at the beginning of the policy renewal, and the second is the compulsory deductibles you pay for every claim as a deductible.

Why is it essential to levy deductibles?

Many people partake in fraudulent activities to skip maintenance costs and reap maximum benefits from insurance companies. Manipulating evidence or staging accidents are part of moral hazards. Such situations can be avoided if a deductible is charged per claim.

Another reason insurance companies practice using deductibles is to provide a buffer between actual accidents and minor damages. Insurance providers offer financial support to people when they claim an accident or theft. However, the compulsory deductibles provide a cushion against unnecessary claims and financial stress for an insurer. Deductibles are used to protect them from such overwhelming situations.

These points are sure to help you understand deductibles and insurance policies better. Do thorough research before you buy your insurance policy. Choose the best motor insurance company in India and add value to your prized possession. Time invested in buying reliable insurance will bring you the best returns during tough times.

Click HERE to know more about the best motor insurance company in India.

Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.

Accidents never come with a warning. And in such cases, having car insurance is a considerable relief. Otherwise, you will have to bear all the financial costs and suffer through the stress, which will never help the problem.

It is always advisable that before buying an insurance policy, you should know all the details and information. And to get the complete information, you need to ask all the right questions to your designated insurance provider. This helps you to know about the benefits you can avail and the steps to take in case you get into trouble.

Listing down all these things has us sweating. All these unforeseeable circumstances sound so taxing, don’t they? This blog has all the information you need regarding these crucial questions.

1. The number of insurance claims you can make:

It’s a mix and match. The higher the number of insurance claims you make in a year, your insurance premiums will increase. Most of the time, the number of insurance claims is not limited and mentioned in your car insurance policy. Your “no claim bonus” provided by your designated insurance provider reduces if you file a claim during a year. It is optional, so you are allowed to forfeit it. It would be best if you were mindful of your zero depreciation cover and other add-on benefits, as some insurance provider companies have a limitation on the number of claims in such covers.

2. Is there any particular number:

There is no particular answer to the question, “how many car insurance claims can be made every year.” It ultimately depends on the type of damage, the grade of damage, the type of policy cover you have under the insurance, and your insurance provider’s norms and regulations.
Although, it is advisable to save your insurance claims for damages that would cause you some financial stress. Do not file insurance claims in case of minor damages that bear low costs, and you can easily afford to get it sorted.

3. What happens if you file several claims:

Suppose you end up filing multiple claims. Are you worried about the consequences and what sort of situations might arise regarding your car insurance? We have discussed the no-claim bonus. Your rates will lower if you do not file any claims in a particular insurance period or year. You will have to bid farewell to your no-claim bonus if you file too many claims.
So, it is advised to only file claims if they are way beyond your affordability or more than your no-claim bonus. Filing too many claims will not only make you devoid of no claim bonus but also affect your premium rates which will skyrocket in case of multiple claims. This happens as these claims make you appear on a riskier end for your designated insurers.

Other consequences include the depreciation rate not being taken into account by the insurance company in case of zero percent depreciation coverage. Don’t file a claim if your repair charges are lesser than the deductibles.

That was all about how insurance claims you can make in a year. We hope this blog has provided the best insights. We suggest an essential tip for buying online motor insurance for first-time buyers. As there are plenty of options to explore, you can conveniently purchase a plan that best suits your requirements and budget.

Click HERE to know more about online motor insurance.

Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.

Insurance policies are supposed to be understood thoroughly before you purchase them. Their purpose is how they would protect you and your assets against financial damage and decide on premiums and claims. Insurance companies conduct detailed background checks of their policyholders to ensure that they have authentic identities, are not involved in any criminal activities, money laundering, or financial scams, are not victims of identity theft, have a good credit score, are reliable drivers and law-abiding citizens of the country and much more.

Are you someone looking to understand the basics yet the most critical questions that would help you purchase motor insurance? We are here with all you need. In this space, we will discuss the most answered FAQs for motor insurance policies. This information will provide essential pointers you will need to understand if you are new to the insurance world.

1. What does third-party risk policy mean:

Third-party risk policies are necessary insurance policies that would protect the owner against the risks mentioned in the act. The third-party insurance policies compensate for the damages caused to the assets of the third parties or during deaths or accidents of the third parties.

2. Validity of your motor insurance:

You must know about the validity of your motor insurance so you can avail of the benefits on time. Always be up to date with your premiums and renew them to avoid putting your vehicle at risk. This way, you avoid financial burdens in case of unfortunate circumstances. The period of motor insurance from the day it begins is up to a year. This will be displayed in your insurance policy's schedule. Do not forget to read the documents and the listed terms and conditions carefully.

3 . Making claims:

Evaluate and estimate the cost of your damages. In many cases, raising small claims might not be a good idea if the damage costs you a small amount that you can easily bear. Keeping your claims for the future can help you avail them whenever there is a dire need in case of a substantial financial burden. Check the no claim bonus, which comes under your vehicle insurance. Follow through with the estimates and what you might have to forfeit under the bonus. Evaluate carefully and make the decision.

4. What happens during an accident:

If it were being driven by someone else, your car or motor insurance would still be valid to use, given that the person driving your vehicle was granted permission by you for the same. You can use your insurance policy to ensure you do not incur enormous costs for repairing the damages.
Also, vehicles are liabilities too. So, the individual's (the person driving your car) liability insurance can be a huge help in paying for the damages if your motor insurance exhausts its limits during the complete servicing and repairing process. Be mindful of your insurance limits.

5. Selling your vehicle:

If you decide to sell your vehicle, you can hand over the authority of the motor insurance to the new buyer. You must make sure that you apply for an insurance transfer with the designated insurance organisation within fourteen days of your car's transfer date under the buyer's name and ownership. You need to pay the endorsement premium before transferring the insurance policy.

Well, these were the most answered FAQs for motor insurance policies. We hope that this information proves helpful to you in understanding a little deeper about motor insurance and the fundamentals you must be aware of to ask the right questions to your insurance provider companies and officials. Also, explore all your options and get the best motor insurance India. List down your requirements and accordingly plan the estimated premium. Make practical decisions and see the results doing wonders for you!

Click HERE to know more about the benefits of buying the best motor insurance India.

Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.

As thrilling as owning a car, there are undoubtedly various risks associated with the same. With the number of accidents increasing daily, it is essential to look out for your family and loved ones. One way of ensuring that is by investing in a good car insurance policy. Another way to ensure that your family stays safe even after your death is by adding them as nominees to your car insurance.

Wondering who a nominee is and the benefits of adding a nominee to your car insurance? Then, this article will tell you everything you need to know about nominees and how to add them to your car insurance.

What is a nominee?

In case of the policyholder's death, a nominee is a person that the policyholder nominated at the time of signing the insurance and will be getting the insurance policy's proceeds. The insurance must also cover personal accidents along with the base plan to provide extended coverage. The personal accident cover will ensure that the nominee gets the insurance benefits even in the absence of the policyholder.

Indian law states that a nominee is responsible for the custody of money or property after the policyholder's death. In some cases, a nominee is responsible for distributing the money and other profits to the legal heirs or the spouse as stated by the policyholder.

Who can be a nominee?

There are no set rules as to who can be your nominee, but the practice is to keep the spouse, parents, or children as the nominee.

How to add a nominee?

Much like every other process, technology has recently made adding a nominee easy. The majority of the work can be done online. Websites and mobile apps have made changing or adding a nominee more straightforward and hassle-free. All you need to do is access your policy account and add the nominee to your selected policy. You will need to give details of the nominee, such as name, date of birth, relation to the nominee, etc. Keeping these documents handy would make the process simpler.

If you want to change your nominee, you can follow the same steps mentioned above and edit the choice of the nominee in your policy portal.

Why should you choose a nominee beforehand?

If an accident or any mishap happens, the legal heir is the lawful beneficiary of the insurance claim benefits. However, verifying and validating the identity can be long and tiring if not explicitly mentioned as a nominee. Choosing and naming a nominee when buying new car insurance or at the time of car insurance renewal is crucial.

What are the benefits of choosing a nominee?

1. In case of the policyholder's death, the personal accident cover provides financial coverage to the family. The claim is not limited to the death of the policyholder. You can make this claim even in the case of temporary or permanent disability caused by an accident.

2. If a person dies after a claim is made, the compensation and benefits will be diverted toward their nominee.

How to withdraw money as a nominee?

Since a nominee is not the owner of the assets, it is essential to prove to the authorities that the policyholder is deceased. You will also need to establish your relationship with the policyholder to the insurance company. The policy holder's death certificate, policy papers, nominee's birth certificate, and a certificate stating the relationship between the policyholder and the nominee are some documents you might need to provide to the insurance company to avail the benefits.

Some policies provide the option to choose multiple nominees, and the benefits and compensation can be shared amongst the nominees as per the policyholder's decision. You can change your nominee mid-tenure. You can either talk to your insurance provider or manually adjust it through mobile applications or websites.

To ensure your family's safety and protection, do not forget to add on personal accident cover in your next car insurance renewal.

Click HERE to find out more about car insurance renewal.

Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.