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Ways To Reduce Your Motor Insurance Premium

When you are looking at a motor insurance policy either for your car or two-wheeler, you should know that your policy has two components- Own damage and third party. Depending on these two components the premium that you pay also has two parts for each components of your insurance cover.

Now when we are talking about saving money on your premium we should keep in mind that only the own damage premium part is under your control because the third party premium is prefixed by the regulator so it is same for all plans offered by various insurance providers.

Few are some of the smart ways to keep a control on the cost that you pay for own damage insurance:

Try to keep No claim bonus intact: This is a type of discount which you as a policy holder can avail while renewing your policy and is given to you by the insurance provider because you have not made any claims in the year preceding the current year. It is always advised if the cost that you need to bear for repair of your car or two-wheeler is less than the savings that you would earn on renewal premium because of NCB it is not favorable to make a claim. If for example, the motor own damage premium is Rs.12000 and you are entitled of 35% NCB (Rs.3850) it would make more monetary sense not to make a claim if your repair cost is less than Rs.3850.

The other way to keep your NCB intact is by applying for add on cover for NCB protection. Though you might need to pay a bit of extra premium but it is always a valuable proposition. Say for instance, your accumulated NCB is 40% and you filed a claim, the add on covers ensures that your NCB doesn’t become NIL at the time of renewal and reinstates it at 30%.

Get your motor always repaired in a network garage: Every insurance company has its own network of garages where you can get cash less repair. The network garages always offer services at a cheaper rates compared to your local shop. A lower cost of repair means a lower depreciation value of your car or two-wheeler.

Opt for Long term motor insurance policy: Generally this is a feature is available for two-wheeler policies where you can opt for policy term of two to three years with free road side assistance. A longer duration policy is always cheaper compared to buying individual motor insurance policies each year. The best part of long term policy is that the third party insurance premium and the service tax hikes would not affect the premium of the policy.

Avail for voluntary deductible: A voluntary deductible means that you as a policy holder commit to pay a part of the claim whenever the situation of claim arises. The part of claims that you promise to pay decides the cost for the rest of the cover. If you opt for an option like this cost of cover is always less than a regular policy.

Other than these it is always advised not to raise claims in case of small damages. Your prudent decision to always take your car or bike to a network garage can also help you get a negotiated cost on repair which is generally 20% lower than your local garage. Prudent and smart strategies can always help you keep the premium down so that it doesn’t affect your pocket.

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Things You Should Know About Third Party Motor Insurance Plans

The Motor vehicles Act in the country makes mandatory for all vehicle owners to have motor insurance to get their motor vehicles insured under a third party insurance though the comprehensive cover is more extensive to give you full benefit of your policy. So as per government mandate you need to have a third party cover.

The question is what is a third party motor insurance? A third party motor insurance also known as “act only “cover. Under a third party policy only damage to a third party is cover. In case of liability from damage in the form of death or property being damaged to a third party because of acts of the policy holder arises then the third party coverage comes in force.

Key points to look into in case of third party motor insurance:

  1. It is the primary regulatory mandate for every motor vehicle owner
  2. A claim in a third party motor policy arises only when there is a damage happening to third party as death or damage to a property happens
  3. A third party motor insurance policy doesn’t cover for the losses happening to the policyholder and corresponding loss happening to the vehicle of the policy holder. For the owner of the vehicle to be covered a comprehensive policy is always advised. Always use compare Motor Insurance Online Plans before you buy a comprehensive policy
  4. The premium paid against a third party policy is always very low. Previously the premium amount was defined by Insurance regulatory and development authority of India but in present context Insurance providers are suppose to price them as per their risk bearing capacity.
  5. A Third party insurance claim is entirely fault based. The third party needs to prove that the damage happening due to acts of the policy holder.

 Though third party motor insurance Plans is the cheapest form of motor insurance and fits well as the regulatory requirement but it actually you don’t have any value for the money that you pay for it, A insurance policy provided by any insurance company has in built third party cover.

Keeping in view of your requirement, in today’s world comprehensive policy is always advised. Comprehensive policies also come with features like Personal accident cover in built in them to give better benefit to the policy. Other than that there are features like cashless claims, road side assistance etc make the comprehensive motor insurance policy more valuable. There are many insurance providers today in the country which have very differentiated offers that suite specific needs of the policy holder so it is always advised to do a online comparison to buy so that you don’t end up paying for the wrong product/plan.

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Motor Insurance Plans-Cash Less Or Reimbursement Which Is A Better Option?

When it comes to fair settlement of claims motor insurance policies generally come at the top of the list but we have to always keep in mind that 100% of your car insurance and motor bike Insurance generally mean that in a situation of claim then what you can expect is 60% to 70% of the damage to be settled and this is because of some standard exclusions under any policy.

When our vehicle gets damaged, people generally get confused about the right way –Cashless claims or reimbursement claims because in any situation you always need shed something out of your pocket but which is a better option which need to be judged.

CASHLESS CLAIMS:

In case if your insurance company offers cashless claim facility and you want to opt for the same then you need to visit to any of registered garages to get your repair of your vehicle done .A registered garage in the one which is part of the insurance company’s list of networked vehicle service stations which are spread across the length and breadth of the country. In a cashless claim, post completion of the repair work what you need to pay would be based upon exclusions mentioned in your policy document and rest would be directly paid by the insurance company to the garage.

One of the major advantage of the cash less claim of facility is that the owner don’t need to take any pain and responsibility .It would always the insurance company’s accountability to get the repair done and get it delivered at your place. The surveyor assigned to you as a policy holder would take care of the rest. But the major disadvantage is the time things take which involves a lot of paper formalities but you will never have the privilege of selecting your garage with which you are most comfortable with.

In case of car insurance the generally network list is much higher compared to two wheeler insurance and is most effective in car insurance claims.

REIMBURSEMENT CLAIMS:

In case your car or two wheeler is serviced outside the network of garages then in that case you can raise claims through reimbursement. You can get your vehicle repaired from a garage and mechanic with whom you are comfortable with and then sent the original bill to the insurance company for settling the claims. Once the details furnished by you to the insurance provider regarding the bills and what you had paid then the insurance company team would evaluate it based upon your furnished information and would pay the claimant accordingly.

The best part of the reimbursement claim mechanism is that you get your vehicle repaired right on time without waiting for the surveyor plus you can always save a lot on the cost of the repair will be always low compared to company registered garages. But always keep in mind that product replacement done during the course of repair may not be of equal quality as in case of registered garages which may not honored by the insurance companies. In a case like this then you share of pay might increase largely.

Based on these advantages and limitations of both options, it is extremely important that you conduct an appropriate research before giving your car to any garage and get the terms and conditions cleared from the insurance company’s representative before taking any act

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