What is car insurance?
Car Insurance not only provides financial protection to the car but also provides cover for injuries to driver, passengers or pedestrians, and their property. It pays for damages to your car due to accidents, vandalism, theft, fire, man-made/ natural disasters, and third-party liability. Considering the exorbitant repair costs these days even a minor damage can cost a fortune. The Motor Vehicles Act also requires every vehicle on the road to at least have a valid third-party liability cover, i.e. cover that pays for bodily injury, loss of life and damage to property of a third person that was caused by an accident with your car.
What is car insurance?
Car Insurance not only provides financial protection to the car but also provides cover for injuries to driver, passengers or pedestrians, and their property. It pays for damages to your car due to accidents, vandalism, theft, fire, man-made/ natural disasters, and third-party liability. Considering the exorbitant repair costs these days even a minor damage can cost a fortune. The Motor Vehicles Act also requires every vehicle on the road to at least have a valid third-party liability cover, i.e. cover that pays for bodily injury, loss of life and damage to property of a third person that was caused by an accident with your car.
What's not covered by car insurance?
a. Normal wear and tear and general ageing of the insured vehicle.
b. Vehicle used otherwise than limitations as to use.
c. Mechanical or electrical breakdown.
d. Damage to vehicle by war, mutiny or nuclear attacks.
e. Damage by a person driving the vehicle under the influence of drugs or liquor or with in invalid license.
f. Loss of the vehicle or damage that can be sufficiently proven to be deliberate or consequential.
What's a no claims bonus (NCB)?
No claim bonus is the discount in the premium charged to the policy holder when no claim has been made during the policy term. It keeps increasing from 20% up to 50%, for every claim free year. Your NCB is applicable even if you change your insurer, or buy a new car. Its a great incentive to reward safe drivers. If you make a claim, you will lose your entire NCB in next policy term. Your NCB will be mentioned on your policy.
What are add-ons?
A basic comprehensive car insurance includes damage to your car, loss and theft of vehicle as well as third party cover. However, at additional cost in the insurance premium, the car owners can avail some extraordinary coverage options. The popular add-ons are:
1. Zero Depreciation.
2. NCB Protect.
3. Roadside Assistance.
4. Loss of Belongings.
5. Engine Cover.
6. Personal Accident Cover.
7. Return to Invoice
8. Medical Expenses Cover.