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| What are the benefits of vehicle insurance? |
Introduction. before going on to motor vehicle insurance let me give you a brief about general insurance. all that is non-life is referred to as General Insurance which comprises motor insurance, fire insurance, then marine insurance, etc.
This was a brief about general insurance to give you an idea and does motor insurance as a part of the General Insurance module.
Motor Vehicle insurance is the insurance coverage of risks arising out of the use of motor vehicles such as car trucks or other vehicles causing damage and loss. motor insurance is also motor insurance you could refer to whenever you are taking insurance for
The coverage of risk that could arise in form of damage or the loss to your vehicle on maybe you are causing damage to someone else’s vehicle in sort of an accident on the road that it becomes mandatory to get motor vehicle insurance
Which will ensure your car as well as your life in case of an accident any injury caused? Let’s see motor insurance is mandatory as per the motor vehicles Act passed in the year 1938 and subsequently amended.
this has been mandatory because whenever you are driving on road, it’s not usually that in an accident, only your car will be damaged or the only injury to yourself would be happening in any sort of accident you may be damaging someone else’s property and
Someone else’s life and as it has been mandatory to take motor vehicle insurance and this comes under the motor vehicles act that was passed in 1938. Now in recently, there was an amendment made because of which
The compensation for various traffic rules violation was increased. what are the things it provides coverage for it to provide coverage for property damage? either your vehicle has been damaged or any property related to it,
your bodily injury any kind of injury, you met in an accident, then the medical expenses which you have to incur because of that an injury which happened throughout the accident on the road or maybe any sort of compensation.
Many times it happens that in an accident, maybe another party would be suing you because of your mistake of violating traffic rules. come in that in that scenario you may have you may end up paying a large amount of compensation demanded by the other party.
Insurance also provides you coverage for that compensation which is involved in any sort of legal proceedings arising due to an accident on road by a third party. Now motor vehicle insurance you can also refer to as auto insurance, vehicle insurance, or car insurance.
Now, let’s see what the types of motor insurance are. the first one is private car insurance whenever you are taking insurance for your vehicle which you have to run for your private uses or no commercial uses.
That would be referred to as private car insurance. The second is commercial vehicle insurance. insurance which you are taking for the vector, which is going to be used for commercial purposes, which would be involved in any sort of business, delivery, business, transportation, business, etc.
Commercial vehicle insurance, then defence vehicle insurance. the insurance for the vehicles which are involved in defence, we like the heavy vehicles which are there in the different segments, so taking insurance for those vehicles,
and then there is two-wheeler insurance for your two-wheeler vehicles which you own. the insurance for that would be referred to as Villa insurance. And here you can signify that you have to when you are taking insurance you have to mention
the type of vehicle you own as well as the use of that vehicle. it’s very much in the policy that you have to mention the use of that vehicle whether you will be using it for your private purpose or business.
All those things you have to mention why taking insurance policy because that is what that is, that would be would be combining the premium amount which you would be paying for your insurance policy.
Now, let’s see what is third party liability. we already referred to as third-party liability, let’s understand this. motor insurance generally comprises two components, the first one is a mandatory third-party liability, and
the second one is the owner’s optional damage. third party liability is when you are when you met an accident and you are causing damage to another person’s property or another person’s life or any injury.
It becomes important that you take insurance which would be providing coverage to help out that person to recover from those injuries or property damage. third party liabilities does mandatory whenever you are driving on the road,
you are getting the vehicle driving the license for your the vehicle, you may you must have to take the third party liability which would be comprised in the insurance policy the motor insurance policy which you would be taking and then the owner’s damage is optional.
The damage is what would be happening to your vehicle, that is optional, you may take or you may not opt-out for it. Let’s see, third party liability coverage is the part of insurance policy that protects you in the case you are sued or asked compensation for any physical injury or damage to someone else’s property by your vehicle accidentally.
It becomes necessary that your insurance policy protects you to pay compensation to that person to recover from that injury or that property damage. Third-Party liability could be falling.it may be bodily injury cost to the third party that is another person or it may be the property damage.
That would also be covered under this. Now, let’s see the factors affecting premium. what all things data mined the premium, which you have to pay on the motor insurance policy? these are broadly focused categories type of vector.
Type of vector now what sort of vector you are using, whether it is to filler, whether it is a private car, commercial vehicles, etc. that will be determining the premium because you see when you are using the commercial vehicle that would be more prone to risk.
After all, that would be involved in the business day to day activities. Whereas private cars would be used less as compared to commercial vehicles, that’s the premium would be less because the rest would be less as compared to commercial vehicles.
Whenever you are taking insurance motor insurance, it becomes mandatory that you mentioned all these things for which purpose you are owning the vehicle and instant that you the purpose of the vehicle for which you have taken the insurance if it
differs from the purpose which you have mentioned while taking the insurance there’s it becomes important that you mentioned the type of the vehicle the use of the vehicle, etc. while taking the motor insurance policy.
The second is the fiscal condition of the driver. it also depends on the fiscal condition of the driver because if the driver is not healthy enough and he’s not having much of skills of driving and as
the premium involved would be higher as compared to a driver which is in healthy condition geographical area of you this also determines the premium amount because the geographical area determines the risk involved
Maybe you are driving in a more populated city as compared to when you are driving in any rural area. Or maybe you are driving in hilly areas which are more prone to risk as compared to the city areas.
That’s the geographical location where your vehicle would be used where you are taking the motor insurance policy that would determine the premium because that would differentiate in the risk involved in that particular location and the age of vector the age of your vehicle how much you
have used and because with every use of your vehicle it goes through depreciation wear and tear happens to your vehicle. And as they invest can vault of getting into an accident or any sort of damage becomes higher.
Now let’s see some of the coverages and exclusions the loss or damage covered in motor insurance loss or damage by accident fire lightning, any sort of theft or malicious activity, natural disaster, all these would be covered under the motor insurance policy.
Then the third party liability which we already discussed in form of injury, death, and damage to other’s property that would also be covered in a motor insurance policy and then any sort of medical expenses due to the injuries or death of any person.
That would be covered under the motor insurance policy. Now what are things that would not be covered there are exclusions it won’t be paying you for every small damage to your vehicle.
Normally wear and tear happen to any scratch or any broken that won’t be covered, damaged when the person was driving without a license. if damage happens because of your fault, if you were driving without having a proper license,
Then that won’t be the insurance company would deny your claim and won’t be providing you with the coverage amount damage which happens when the price of when the person was driving under the influence of alcohol.
But after that also if you were drinking and then driving and any sort of damage or accident happens, the insurance company could deny your claim and would not provide you coverage then damage due to a war which is an A which is an exceptional situation.
That is not covered under the insurance coverage policy. Now, let’s see some of the add on covers which you could take other than the main policy You can also opt or opt-out for some add on covers which will help you in the total production of your vehicle.
The first one is a zero depreciation cover. as I already mentioned that your vehicle with the users and the passage of time will go through depreciation, it will not be having the same value. After five years users or six-year uses its value will decline. And it’s capacity also.
The depreciation amount. in case your vehicle’s age has been more and it has gone through a lot of wear and tear and depreciation, the insurance company will be providing you with the full amount it will be deducting the depreciated amount, and then we’ll be providing you with the coverage.
Now, this adds on the cover will help you get the repairs or replacement of plastic and fibber components of your car that goes through depreciation insurance. Now, five would you opt on for this add on covered this would help you get the total value of your repairs or replacement irrespective of the depreciation amount of your vehicle and what you would have to pay.
When you opt for an add-on cover, you would end up paying a little higher premium as compared to the normal policy. The second is the engine production cover. an engine production cover is an add on add on to your car insurance policy
that is meant to cover any damages to the engine. let me tell you that a new comprehensive car policy which you take the engine, production is not covered. any damages happening to your engine you won’t be providing you won’t be you can’t claim for that.
you can opt-out for engine production cover which would do cover any sort of damages to your engine, which happens through leakage water damage, or physical damage the insurance company would be liable to compensate one shade you for review
for repair, repair, or replacement of your engine. Now it would cost you a huge amount. it’s better to take this add on cover to protect your engine. And this is most useful in areas
which are more flood-prone because the water would automatically the water damages the engine and in that case, you would be in that sort of area, it’s more advisable to take this add on cover. Then roadside assistance covers
it’s very useful to add on cover to take on along with your vehicle insurance policy. And whereas it provides you with a lot of many services let’s see, a roadside assistance and insurance cover keep your insurance at your service that you can contact your insurer immediately.
any time in between your travel. Your assistance anytime you can contact your insurer immediately and he would be and the person would be there to help you out in the case of an accident or any emergency.
it provides roadside services such as repair any damages happen it would provide the repair on this port. If you need emergency fuel delivery, it would be provided with the flat tax service that I will be changed driver disability if your driver goes through disability
and you are stuck in between your way. the driver that would be covered another person would be driving you up, then simply a shipment of stairs part and he needed tabbing to the nearest repair canter if your car just stuck down and it does not move then turn your car to the nearest repair centre.
And in case your car is taking a lot more time to get serviced, it would involve like many hours three to four hours in that scenario, you would be provided with accommodation and cab service as well. roadside assistance cover provides you with a lot many things with a little higher premium then your actual car policy.
One then this is consumable cover car insurance usually does not compensate or pay for any cars consumables damage. any sort of damages happening to cars consumables are not paid or not provided coverage in under the normal car insurance policy.
To avoid this you could opt for consumables covered in motor insurance, a consumable cover is an addition to the insurance coverage that pays for the cost of consumables like nuts and bolts.
what are things are consumables like your nut and bolts engine oil, gearbox oil, lubricants, all these things are considered as consumables because it cannot be used either it exhausts or it needs to be replaced.
nut and bolts after use need to be replaced after some time whereas the engine oil gearbox while all these burned out after being used, those things which cannot be reused are referred to as consumables and to add often
for this add on the cover would provide you to be replaced or refill in the event of an accident to your car. opting for this the consumable cover would provide you with an add-on cover that would compensate for any sort of damage to your consumables.
This is returned to invoice cover in case of incidents where you lost your car completely due to fire or theft. Now the insurance company would pay you only up to the IDB ID vs insured declared value which was determined
that how much would we pay you after deducting the depreciation amount and all those and all those the parts which are not covered after deducting all those things for the insured declared value is what would be paid by the insurance company
which is of course much lower than the invoice value of the car. invoice value is the value at which you will be purchasing the car since you have lost your car you may be going to the market and purchasing another car
the invoice value of the new car which you would be purchasing which would be a replacement to the same model on the old car. this happens only in case you have lost your car and it’s not like some sort of small damage to your vehicle.
