You must ensure that the renewal of your motor insurance policy is done well in advance to enjoy continued benefits. And in case you fail to do the same, you lose on accrued policy benefits as well as the motor insurance coverage.
In case you didn’t pay any attention at the time of buying motor insurance, you might be having multiple Personal Accident (PA) covers that came clubbed with the policies. Hence, you must make sure that you correct this mistake at the time of auto insurance renewals.
It's important to note here that the coverage particular of a motor insurance plan depends on the type of policy you choose to buy.
As per experts, one should conduct proper research before buying a vehicle insurance policy. For example, the inclusion of roadside assistance, depreciation reimbursement, engine protection, etc are some of the add-ons you should consider to have proper coverage.
In an auto insurance policy, third party (TP) insurance is mandatory. The premium of Third Party plan fixed by the insurance regulator on an annual basis. Insurance providers, on the other hand, fix their own rates for Own Damage (OD) and PA cover.
It is highly important for all the policyholders to check whether their motor insurance policy has been duly renewed or not. During the lockdown period, numerous individuals forgot to renew their vehicle insurance policy.
Even if the vehicle is at home, motor insurance is vital since it safeguards against fire/theft and other risks. You must also check for proper add-on covers like zero depreciation, shield/engine protector/consumables and others are if not taken already.
In this context, you should note here that, if there is break-in insurance, the insurer will do pre-inspection before renewing the motor insurance policy.
In motor insurance, a third party (TP) cover is compulsory for all types of vehicles plying on the Indian roads. The third-party policy protects the owner of a vehicle against any legal liability that could arise owing to an unforeseen accident—be it injury or death of the third-party person or any property damage to the third-party.
Further, individuals must purchase a mandatory cover which pays ₹ 15 lakhs if the owner of the vehicle dies in an accident. On the other hand, having a comprehensive motor insurance policy helps protect vehicles during several natural as well as man-made calamities.
Vehicle's Insured Declared Value (IDV) is pre-defined by the IRDAI on a yearly depreciation basis. Nonetheless, policyholders can increase it up to 20% and decrease by 10%, based on the vehicle’s current ex-showroom price. Note that increasing IDV can also raise the premium.
At the time of comparing different available auto insurance options online, a motor insurance premium calculator is a useful tool. It can help you in the seamless comparison of different plans while keeping your premiums in check.
Make sure that you note the inclusions and exclusions of the policy when opting for a suitable motor insurance plan for your vehicle. However, the list of exclusions is more or less similar across insurance companies and their various plans. Some common exclusion of a vehicle insurance plan includes drunk driving, deliberate accidents, driving without a license, consequential losses, driving outside the geographical region, etc. Keep in mind that a comprehensive or package moror insurance policy provides you with more wholesome coverage. They include the coverage for the damages to your vehicle along with third-party liabilities.
It is important to review your motor insurance each year. Preferably, 2-3 months prior that they are due for renewal. If improving your finances is on your new-year resolution checklist, it is as good a time to reevaluate your insurance policies too.
In case you are one of those who has purchased his/her first motor insurance from a car dealership, you must check out other alternatives from a coverage and cost perspective. And if you are the owner of a new one, you should ascertain that you have at least a comprehensive motor insurance cover, along with a Zero Depreciation add-on.
Lastly, one thing which is frequently missed is that legally you only require only one PA cover while driving in India. Even if you have multiple vehicles in the family, for instance, cars and two-wheelers, etc, you still just need one PA cover to legally drive around. Having ₹15 Lakh personal accident cover is recommended by the experts.