Car Insurance Online : More Information about Car Insurance
If you want to drive a car legally you need auto insurance. This type of insurance helps ensure that everyone stays safe in a crash or other car-related problem.
If you drive a car, you need auto insurance. In most parts of the world, including India, you need to have your vehicle insured in order to drive it. This type of insurance helps ensure that everyone stays safe in a crash or other car-related problem. Legally, no motor vehicle is allowed to be driven on the road without valid insurance. Hence, it is obligatory on your part to get your vehicle insured.
There are two types of motor vehicle insurances
Motor Policy A” (known as third party risk)
“Motor Policy B” (known as comprehensive insurance policy). Although legal requirement is met by Motor Policy A, it would be sensible on your part to go for comprehensive insurance policy.
Motor Policy ‘A’ (Act Policy)
Policy A covers risks required to be covered under the Motor Vehicles Act. It is mandatory that every car owner be covered against Act Risks under Section 146 of Motor Vehicles Act 1988.
The scope of cover is to pay compensation for death of or bodily injuries to third parties and damage to the property of third parties. While the Insured is treated as the first party and the Insurance Company second party, all others would be third parties.
For private vehicles and cars, the ‘Act Only Policy’ covers third party property damages. Fire and theft risk can be covered by paying additional premium.
Comprehensive Insurance Policy
A comprehensive insurance policy includes:
* Third party cover.
* Loss / Damage to vehicle as a result of an accident, fire or theft.
* Risks against floods, earthquake, riots and strikes.
* Accessories like music system, air-conditioner, etc. can also be covered by paying additional premium.
* Risk of loss/damage while in transit by road, rail, watercraft, air, elevator, etc.
The insurance policy is valid for one year. It becomes effective from the moment the payment of premium is received by the insurance company, and ends at midnight, exactly a year later.
The insurance policy can be obtained through an insurance agent or a development officer of the insurance company. Usually, the new car dealer is also an insurance agent. The insurance premium depends on the car’s value, the engine power, its seating capacity, and the value of other accessories like the air-conditioner.
Renewal of Insurance Policy
The insurance policy has to be renewed within the period of validity. Any delay in the renewal of the policy renders the policy invalid and you will not be able to avail any benefit of the policy. Also, driving without a valid insurance policy is a legal offence.
No Claim Bonus
A discount in the premium of a comprehensive insurance policy at the following rate:
* 20% for the 1st year.
* 35% for the 2nd year.
* 50% for the 3rd year.
* 65% for the 4th year and afterwards
The value of the discount depends upon the insurance claims you have made in that particular year.
This discount is adjusted against renewal premium. You can avail the no claim bonus when you renew your policy. In case your policy expires, you can still avail the no claim bonus if you renew the policy within 90 days of its expiry.
Incase you are buying a new car you can transfer the no claim bonus from the policy of your old car to the new one.
You need to intimate the insurance company in case you sell your car and you are eligible for the no claim bonus. The no claim bonus is adjusted against the premium of a new car, if the purchase is made within a period of three years.
Transfer of Insurance Policy
In case you purchase a used car, you can transfer the existing insurance policy to your name by informing the insurance company within 14 days from purchasing the car.