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Every vehicle driving on public roads must be insured against third parties in accordance with the Motor Vehicles Act. In order to ensure adequate and complete coverage, the insured may opt for comprehensive insurance or various add-ons. This is an important decision that requires a careful analysis of the options available, as well as any additional coverage required. Each factor must be properly assessed in order to update it on time and be eligible for a reward.
Like most general insurance policies, vehicle insurance has annual coverage that must be renewed at the end of its term. Here we will discuss some of the facts that a client should pay attention to before proceeding to renew a vehicle insurance policy:
Insurance Declared Value (IDV)A: Before purchasing or renewing vehicle coverage, you must consider the declared insurance value (IDV). In the event of theft or complete damage to the car, it represents the maximum compensation. Understanding IDV is critical because it affects how much insurance premium you pay. Customers can often be enticed by the lower premiums offered by multiple insurers when renewing their policy. It is extremely important to understand that a lower premium usually means a lower IDV, resulting in insufficient insurance coverage and negatively impacting future claims.
Terms and Conditions: Check the terms and other information at the time of renewal to avoid misunderstandings that could affect the coverage you receive. If your existing insurance does not meet your requirements, you can also expand coverage or switch to another insurer for better coverage, additions and support without affecting NCB.
No Claim Bonus (NCB)A: If the insured does not claim within the previous full annual term of the policy, they will receive a discount known as the No Claims Bonus (NCB). For five consecutive years, general insurance companies in India have provided up to 50 percent discount as an NCB bonus without claims. The Own Damage (OD) allowance is the only allowance that qualifies for the NCB benefit.
Additions: You can purchase add-ons such as depreciation reimbursement, NCB protection, basic roadside assistance, engine protection, inconvenience allowance, consumable coverage, emergency medical expenses, advanced passenger accident insurance, etc. to help minimize losses that are often not protected by the standard. car insurance. For a minimal fee, these additional covers can be applied to a vehicle’s policy and can be very convenient.
Network of garages: Each insurance company has partnerships with car services throughout the country. These stores are referred to as insurance company network garages. To simplify claims handling, auto insurers provide cashless auto insurance plans for repairs at these partner service centers. These garages and insurance companies pay fees in a non-cash manner. As a result, the policyholder is not obligated to pay the amount of the repair, except for his share of the liability.
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