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Every vehicle that drives on public roads must have third-party motor insurance, as stipulated in the Motor Vehicles Act. For adequate and complete coverage, the insured can opt for all-risk insurance or various supplementary insurance policies. It is an important decision that requires careful analysis of the options available and the additional coverage required. Each factor must be properly assessed in order to extend it in time and be entitled to the rewards.
Like most general insurance policies, auto insurance provides annual coverage, which must be renewed when it expires. Here we discuss some facts that a customer should look into before renewing their auto insurance policy:
Insured Declared Value (IDV): Before buying or renewing a vehicle cover, it is necessary to take into account the Insured Declared Value (IDV). In the event of theft or complete car damage, it represents the maximum compensation. Understanding the IDV is critical as it affects the premium amount paid. Customers can often be lured by the lower premiums offered by various insurers when renewing their policy. It is crucial to realize that a lower premium usually means a lower IDV, which results in insufficient coverage and has a negative effect on future claims.
Requirements: Check the terms and other information at the time of renewal to avoid any misunderstandings that could affect the coverage you receive. If the existing insurance does not meet your requirements, you can also extend the cover or switch to another insurer for better cover, add-ons and support without affecting NCB.
No claims bonus (NCB): If the insured does not file a claim during the previous full annual policy period, he will receive a rebate known as no claims bonus (NCB). With no claims for five years in a row, non-life insurers in India are offering up to 50 percent of the discount as an NCB bonus. The Own Damage (OD) premium is the only premium eligible for the NCB payment.
Additions: You can purchase add-ons such as depreciation allowance, NCB protection, basic roadside assistance, engine guard, inconvenience allowance, consumables coverage, emergency medical expenses, enhanced personal accident coverage for commuters, etc. to help minimize losses that are often not covered by standard auto insurance coverage . These extra covers can be applied to a car policy for a minimal fee and are quite handy.
Network garages: Every auto insurance company has partnerships with garages across the country. These stores are called insurance company network garages. To simplify the settlement of claims, car insurance companies offer cashless car insurance for repairs at these partner garages. These garages and insurance companies settle the contribution in a giro transaction. As a result, the policyholder is not obliged to pay the repair amount in addition to his share of the debts.