Motor Insurance

DESCRIPTION

Broadly, there are two types of motor insurance – the ‘Act only‘ policy and a Comprehensive Policy.

The scope of the ‘Act only’ policy is to pay compensation for death or any bodily injuries and for damage to the property of third parties. While the insured is treated as the first party and the insurance company as the second party, all others would be third parties. In case the vehicle is purchased under a hire-purchase agreement, the financiers insist upon a comprehensive policy to take care of their interest as collateral security.

The perils covered under the comprehensive policy are fire or theft or both fire and theft in combination with the minimum requirements of the act (i.e. third-party liability). Comprehensively, these include damage to the vehicle by accidental external means: fire, lightning, explosion, self-ignition, burglary, house-breaking, riot and strike, malicious acts and terrorist acts, earthquake, flood, inundation, cyclone, landslide/rockslide, etc. while in transit by rail, road, air, inland waterways, lift or elevator.

Discounts can be availed if the insured chooses to exclude the following covers: earthquake cover, flood, cyclone and inundation cover, riot, strikes, etc.

Discounts can also be availed for every claim-free year.

TYPES OF COVERS

1) Third Party/ Liability only/ Act Policy- This covers the following

• Death or injury to any person by the vehicle – Unlimited.

• Damage to any property of third party – Maximum of Rs. 7,50,000/-

• Compulsory PA Cover for owner-driver.

2) Package Policy – This covers the following besides the aforesaid covers. • Loss or damage to vehicle (the risk cover are accidental damage, fire, theft, Riot & Strike, Earthquake, Flood, terrorism, etc. – Up to the amount of insured declared value (IDV).

EXCLUSIONS

: Any accident outside the geographical area, Depreciation, Normal wear and tear expenses, mechanical or electrical breakdown, consequential loss, damages to tires only, or damage by drunken driver.

ADDITIONAL COVERS AVAILABLE

1. Electrical accessories – premium @ 4% of the value.

2. CNG/LPG kit – 4% of the value.

3. Paid driver Rs. 25/- covers the accidental death to the sum extent of Rs. 1,00,000/-

4. Optional P.A. covers to occupants @ Rs. 5 for every 10,000 covers subject to a maximum of Rs. 2, 00, 000 per person.

5. Extension of geographical area.

DISCOUNTS

1. If the person is member of Automobile Association @ 5 %( maximum of Rs. 200) on OD portion.

2. Anti-theft devices @ 2.5% (maximum of Rs. 500) on OD portion.

3. No claim discount up to 50%.

DIRECT SETTLEMENT OF CLAIM

Certain Insurance companies provide the facility of direct claim settlement with the designated workshops.