Covers any accidental damage to the vehicle, theft and an third party damage or injury caused due to usage of the motor vehicle. Let us understand some aspects of the motor insurance.
- The standard insurance cover has a third party cover to compensate the third party for an injury or damage caused due to the motor vehicle usage. This is the mandatory insurance cover, and the compensation is awarded by the Motor Accidents Claims Tribunal to the aggrieved party. The compensation is unlimited for Personal Injury and death of a third party and incase of property damage the maximum limit is Rs 7.5 lakhs for a private car.
- The comprehensive insurance cover includes accidental damages sustained by the vehicle and theft under the ‘Own Damage section’. The compensation payable is actual cost of repairs less deprecation, salvage & deductible under the policy. The maximum loss payable in this section is the Vehicle value or IDV as per the policy.
Important considerations while buying a motor insurance policy
- There are add on covers available to waive of depreciation applicable in the standard motor insurance. It is an important cover to ensure minimal out of pocket expenses at the time of a loss.
- The cashless tie up of the insurance company with nearby as well as authorized garages. This means only the residual amount has to be borne, as settlement happens directly between the Insurance Co and the Garage.
- Check and understand each add on cover’s offering before buying as every company has a different add on offering.
- Avoid making small value claims, the savings in premium by way of No Claim Bonus could be higher than the claim compensation amount. The No Claim Bonus increases every claim free renewal, and has a compounding effect in reducing the premiums.
Never have a break in insurance, Always renew in advance to ensure the vehicle is never uninsured.