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What Should You Do If your Car Insurance Documents Are Lost?

This may be a common and can happen to anybody. Let’s understand things by understanding the case of Mr. Raman. Your should remember that the car insurance documents are a mandatory things to raising claims also and when even the RTO has the right to claim to see the documents when required so it is an important thing to be kept in mind.

Raman recently renewed his car policy and while travelling outside with his family on a holiday the car insurance documents some got lost. But he noticed the miss happening only after the family returned from their holiday. Now the challenge before the Raman is to get the duplicate policy document issued asap. He called his insurance company for help regarding the lost document they suggested him to file a FIR first and submit the non congressional report from the police station along with the request for issuance of duplicate document. After thorough verification Raman’s insurance provider issued him the duplicate copy of the car insurance policy.

Raman’s case might be seem to very easy task but the condition may vary from insurer to insurer and can ask for more documents to proof your claim of lost document and you can be asked to pay a fee even for the release of the duplicate copy. So to understand the process further you should know the standard process which the insurance industry follows. You may follow the steps given below to reduce your chances of falling into various hassles associated with issuing a duplicate copy of your car insurance policy

Step 1: Submit an application: Make sure that you should first the application first and to notify your insurer of the issue. The best way to do it is that your application should some contain some basic information of your policy number, proposer full name, date of insurance and the type of the cover .In case the initial application was jointly done by somebody make sure that duplicate document request should have the signature of both the applicants. In most cases the insurance company also expects you to submit the copy of the FIR along with the request application. So you should always take the non congressional report from your police station once you have filled the case of missing document.

Read also: What If Your Car Insurance Policy Has Lapsed? Can You Renew It

Step 2: Publish an advertisement: In case of some insurers they expect you to post an advertisement regarding the lost document with the local newspaper also. So while filling the request application you should also submit the copy of the advertisement which you have got published.

Step 3: Indemnity bond: While making a request for duplicate document it is mandatory to sign up for a indemnity bond. An indemnity bond is generally executed on a non judicial stamp paper of appropriate value. The indemnity bond should have the details of the policy with all minute elements and also the details of the proposer. You can add more credibility to the indemnity bond by adding two witnesses to the bond who are not your family members. Make sure that you submit the indemnity bond along with request letter to the insurance company

Though the process of filling request for duplicate document is a easy process but you should always keep in mind the above steps because things may vary from one insurer to another

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 Which Car Is Best To Buy Petrol Or Diesel?

Everybody has their own preferences and there is also quite difference in opinion about selection of a particular variant but if we try evaluating on financial ground things might look bit different. Though we all know that car insurance premium is largely dependent on the insurance declared value of the motor vehicle but car variant as a factor also has an important role to play.

Now let evaluate the basic question of which one to buy based upon financial factors .Till date people been biasing their opinion on cost of fuel when there was a huge difference between petrol and diesel cost but in today’s world when the differential is minimal there are other factors which need to be look into:

  1. The first and foremost thing to look into the ex-showroom price. Right from the starting diesel cars are dearer than their petrol variants and the difference is quite substantial.
  2. Considering the insurance premium cost, though the cost of premium keeps on depreciating with increased period of usage but insurance companies always evaluate diesel cars as more risky and which leads to a higher IDV and higher premium.

Read Also- Declare Your Correct IDV To Take Full Benefits Of Your Car insurance Policy

 

  1. If you are considering funding your purchase with an auto-loan you might also end paying a higher interest cost. Though in most cases the initial down payment may be same for diesel and petrol cars but auto loan companies always charge a higher cost of interest on diesel cars.
  2. The fourth most important factor where actually diesel cars lead is the mileage. In case of an average petrol car the general mileage is always in the range of 15 km per liter and this where most diesel cars lead which always have an average mileage of 20 km per liter
  3. Cost of consumables is an important factor while considering long term usage of the vehicle. The cost of service ,spare parts and battery is always higher in case of diesel cars .In fact in case of accidental repairs the claim ratio for car insurance plans for diesel cars is also low compared to it petrol variants making diesel cars more expensive for future usage.
  4. Another final factor to consider is the road tax, authorities generally levy a higher cost in case diesel cost.

So the bigger picture while making decision is not just the fuel efficiency or cost of fuel but the decision needs to evaluate on money terms. Higher costs of car insurance premium, higher depreciation etc are factors to be considered in detail especially when you are looking to buy the car for personal use. For insurance you can still control the cost because online comparison of insurance plans can give you fair idea and give you lot of savings but for the final decision on which one to buy should also consider factors which can lead to long term affordability.

 

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Things Which Might Not Know About Your Car Insurance Policy

When we buy a car policy we typically try to understand it from some broad perspectives but we generally miss out the small ones. There are vast arrays of benefits which we possibly don’t know about our car policy and because of which we are not able to take full benefits of our car insurance policy. Listed below are few of them

  1. The policy also covers something beyond accidents also. Typically we make a claim to our car insurance provider only when there is an accident. In this case you know that you have to pay a huge cost out of your pocket so you always focus on this very fact while buying a car insurance policy. Most of the policyholder actually misses out the fact that their car insurance plan other than just covering for accidents also covers for damage due to natural calamities and also bears the loss when the car is stolen.
  2. So this is another typical situation, you get stuck somewhere in the middle of the night and nearest possible service station whom you called for service took the benefit of your situation and charged some exorbitant toying charge. We  generally don’t  claim for these charges with the insurer but you should know that all car insurance plans cover toying car with a prescribed limit during the policy year and doesn’t even stop you make this claim for any number of times during a term even under the basic cover.
  3. Renewal with no documentation. While buying most financial products we are typically faced with the problem of furnishing as many as documents which make the process very cumbersome. But typically speaking in case of car insurance you don’t have to furnish any documentation during the process of renewal and with all the new online mediums coming in place the renewal has become a click away.
  4. Discount on third party premium, we generally underestimate this part of the policy. As a common understand we generally get a message third party rates are set by the transport authority and so you can’t ask for any discount with your insurer in this case. But if you are confident enough to avert third party claim situations and feel that you can handle the same out of your own pocket, you can ask for limit on the third party cover through which you can save money on the third party premium also.
  5. 24*7 Assistance, lot of policyholder actually don’t know you have a 24*7 assistance cover which already exist in your comprehensive plan. In recent year most of the insurance companies have started providing this cover either as a part of the base policy or as an add-on cover. In case you are stuck somewhere where you don’t an access to service you can anytime call upon your insurance company and get the assistance delivered at that place.
  6. Another important cover which we generally miss is the Zero depreciation cover. This is a unique and effective cover in the initial years when you have brought car. This also has a benefit in savings you insured declared value of the car for later years and can also enjoy the benefits of getting a larger claim settled by your insurers in the later years when there is more wear and tear.
  7. Tax savings, though this benefit doesn’t apply to individual car owners but you are using your car for business purpose you can always claim the exemption from tax authorities on the premium that you pay each year from renewal of your insurance.

We generally have the habit of not reading the terms and conditions of our policy document and because of that we miss out this small benefits which are mentioned above. These benefits seem very small but they can to a good use when need arises .So it is always advised to understand you car insurance plan in totality before making any decision

Read Also - Better Steps To Make A Car Insurance Claim Procedure

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Five Add on covers which can super charge your car Insurance policy

Indian cities are today flushed with huge migration from adjoining areas but development of public transportation infrastructure in these cities have not seen such sustainable addition to match the every rising need for commuting . This has lead to rising ownership of personal cars among city dwellers .But looking at the rising cost of living in these cities maintaining a car is hitting the personal finances largely .High cost of rent and EMI, maintenance charges, fuel charges, education for kids etc is already damaging things plus if you have to bear an extra cost for car repair in any month, can affect your financial plans for next three to six months.

Other than investing an extra amount after each three to four months into a depreciating asset like car can have serious long term bad effects on your personal balance sheet. To handle a situation like this a comprehensive car insurance policy can be of great help but that’s all is not enough. To stay always right on track you actually need some extra enablers which are technically not part of any plain vanilla policy. Though you might have to pay an extra cost for it but the nominal fee will guarantee a long term peace of mind .Other than that add on covers offered by car insurance companies can help you to customize your car insurance policy in a way which best suits your driving habits. Just plan your car insurance well in advance with the suitable add on and you are done for the rest of the year. Prefer buying the policy online where you can actually make a fair comparison of different offerings in the market based on the different add on covers you are looking at.

Additional cover option which you can opt for:

Looking at the specific options offered by various insurers can help you make a fair decision. The maximum amount of coverage offered under each add on vary with the insurers so to make a fair judgment do have a clear understanding what you require and what not so that you don’t end up paying for things which you don’t require. The top five priority add-on covers which you should be considering as a top up cover over and above your regular comprehensive car policy are listed below:

  1. Zero depreciation : This is one of the popular add on cover among car owners though you can only avail this during the 1st three years of ownership but the peace of mind it offers is incredible. As we all know that car is a depreciating asset but damage in the initial years to your dream car can be quite painful and this is where an add-on like this comes to help. The privilege which it offers is that if you make a claim for damage due to accident during the initial years , the insurance company will pay you for all the parts damaged during the process which in a regular scenario is not covered and you have to bear the cost out of your own pocket. As the name suggest it help to stay safe for loss happening due to depreciation covered. It is a win-win situation for both the car owner and the insurance company. From the perspective of car owner’s wallet it also help you control cost of future premium also
  2. Road assistance: if you are avid traveler then it is one of the best add-on covers which you should consider adding to your regular policy. In recent times car insurance companies are trying to service their clients end to end and this is a step towards that. Accidents, car damage and incident similar to these are quite common among on Indian roads but the problems become acute when you get trapped in a problem like this when access to services like garages are not available. Take a situation where you have a flat tyre in the middle of the highway and you forgot the tool kit in your home; this is where the cover is very beneficial. The things that you can opt for under this are fuel assistance, repair support and you also get a taxi and lodging cost pre-paid by the insurer if you get stuck in a remote location.
  3. Engine and Electronic circuit cover: You should always keep in mind that Electrical parts are not covered under your comprehensive policy. Plus in case of engine damage due water which is again a severe problem is also not part of the comprehensive coverage. During monsoon Indian cities are generally flooded with water, water logged roads is common scenario which can cause serious damage to your car engine. In last 2 to 3 years major metros like Mumbai and Chennai have severely faced problems of floods. In a situation like this you make one mistake and it assures you pay a heavy cost from your pocket. Engine damage is a common phenomenon, try starting your car when it is moist and you are gone with a blocked engine and this is where this specific cover comes as a savior
  4. No claim bonus cover: Don’t get confused by the Non claim bonus which is technically a discount which you while paying premium next year if you a claim free preceding year but what happens if you have made a claim it can seriously extrapolate your premium. This is a cover for every car owner can help you protect this discount. As the discount amount can range to a percentage of 50% opting for it can make lot of sense.
  5. Personal accident cover: This is a cover which comes as a true beneficiary for the policy holder. In case of death & permanent and partial disability of the rider the plan pays for it. It also pays for the driver also even if he or she is the owner so saves you from liability. But two things to remember in this case , if the car is company this is not effective and if you have multiple cover from different insurers at the time of claim only one will service you.

 

 The above five add-on covers are actually boons for the car owner and help him/her attain the level of customization which is required in a car policy so that you end of paying for only those things which you actually require and also makes your car insurance planning very robust. 

 

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Do You Need An Engine Protection Add-On In Your Car Insurance Cover: Understand To Make A Fair Judgment

Your car’s engine is the most critical part and it is the most costly part if we consider in terms of repair. At times just having a comprehensive car policy does not serve all purposes where the add-on cover comes in play. Though adding an additional cover generally adds an extra amount of cost to the premium that you pay but in long run they can be great help and can help you save a lot of money in repairs. Engine protection is one the best add on cover mostly available with all comprehensive car policy options from various insurers. In a country where the road infrastructure is very up to the mark and pot holes and water logging is a common phenomenon in cities this particular add on cover comes a boon for policyholders.

What is covered under Engine Protection add on?

Typically speaking, this particular additional cover gives protection for   engine damages happening due:

  1. Leakage of lubricating oil
  2. Damage to gear box
  3. Water Ingression
  4. Hydrostatic lock

You if look at a regular comprehensive Car Insurance policy they generally don’t cover losses happening due to above mentioned reasons whereas the cost of repair is typically the highest in most of these cases. A dedicated Engine Protection addon cover is generally a savior in this case or otherwise you need to shed out huge amount of money even if when you already having a comprehensive cover.

Insurance plans with Engine protection add on cover:

  1. Bajaj Allianz Engine Protector Add On: if you opted for Bajaj Allianz Private Car insurance then you should also at adding with add on to. The best part of this offering from Bajaj is that they not only cover internal engine damages but also pays for the labor charge involved to repair.
  2. Bharati Axa Hydrostatic lock cover: Though it doesn’t cover all possible damages but is cover Hydrostatic lock which is one of common reasons behind engine damages. The cover is available for a period of 5 years and covers both repair and replacement. Hydrostatic lock is a common phenomenon due water ingression into the engine. In case the engine is in a most state and the driver tries to start the engine then hydrostatic locks happens to engine which means the engine get jammed
  3. HDFC Ergo Engine and Gear box protection :  Though this is just an add on cover but the way it covers engine damages make it work like a comprehensive cover of your car’s engine. Engine issues arising due gear box break down and water ingression are not cover but engine damages due to accident is also cover. This adds on features also help you to cover the cost repair of engine also.

  Looking at the broader cover this add on features adds to a comprehensive policy makes it the most things to consider while buying car insurance online or offline even though you end up paying a bit extra .Different insurance providers value the risk associated with engine is different so the cost for this cover may change in accordance with insurance company so it is always advisable to compare before you buy one.

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Declare Your Correct IDV To Take Full Benefits Of Your Car insurance Policy

Looking at how your car insurance plan works better for you depend on the IDV (Insured Declared Value) of car declared at the time of buying the policy. Technically speaking your car insurance plan has two components and the premium that you pay is the summation of premium of both the components. The two components are two types of cover which is available under a comprehensive car policy. The two types of covers are called Own damage (OD) and third party (TP) cover. The OD component of the policy protects you from loss or damage to the car due accident, natural calamities and any other man made calamity whereas the TP component protects you from financial loss arising due to a liability created due to accidental damages resulting into permanent injury or death of a person or property who is not the policyholder in the plan. Now looking at the premiums of both the components, the premium calculated towards third party liability is always a fixed component and the calculation based upon fixed tariff as per the vehicle category and it doesn’t change with the change in the insurance provider whereas if we look at the premium of the Own damage cover it actually varies from  one insurer to another plus you can actually control the price that you pay for it say by opting for various forms of discounts like No claim bonus or by installing anti-theft device in car etc. The premium of the Own damage discount is calculated on the IDV of the car which you have declared at the time of Buy or Renew Online Car Insurance Policy.

Let’s first understand what actually an IDV is? IDV is actually the highest possible claim the insurance company would pay you during the policy period in consideration. The IDV is generally arrived at the current listing price of the car and not the price at which you bought it minus the depreciation rate into consideration. Depreciation rates are standard tariff rates and depend on the age of the car. The depreciation rates vary between 5% for a six month new car to 40% for a car which is close to 4 to 5 years old. In case during the time of renewal of the policy your model of car is out of market then the IDV is decided based upon negotiations between the policyholders and the insurer. Higher the IDV higher would be the premium.

Now the question is why the actual IDV declaration is an important factor? People generally try to hide the actual IDV just to save premium but this small amount of savings can lead to huge loss in future .There might be a situation where you might have declared lower IDV during renewal and in the same policy period you are faced with a situation of claim. You already know that claims will be always be settled post calculation of depreciation and which can lead to a zero valuation of your car and nothing is paid to you by the insurance company. But on the other hand is not necessary you will get a higher claim if the IDV declared is high. The IDV should be considered at a reasonable value which should in sync with the age of the car and the model.

While Buy or Compare Car Insurance Online Policies you should keep in mind that the technology is built in such a way on the comparison websites that the IDV is reduced by certain amount as each policy period passes on and which might not be the actual IDV of the car. This may lead to unwanted devaluation of car. Always check the right IDV. Myinsurancebazaar,com gives you an opportunity to change your IDV as per reasonable value which you can set while making the comparison between various plans offered by various insurance companies.

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