For buying a new policy call 094444 48899. For customer service call 1860 425 0000.

Royal Sundaram iTalk

insurance blog from Royal Sundaram

Few Terms to Know Before Buying Car Insurance

Posted by Royal Sundaram on 05 Oct 2016

Few-Terms-to-Know-Before-Buying-Car-Insurance

For most of you, buying a car is the second-costliest purchase done in life, after purchasing a home. Owning a car does give a sense of pride to many. As a result, most of us take utmost care of the prized possession by doing regular cleaning, servicing, and maintenance. A car insurance policy is requirement and a necessity to protect oneself from any uncertainty event or incident. Here are some common terms which you need to be informed of.

  • IDV
  • IDV stands for Insured Declared Value.
  • IDV is the maximum amount of sum to be paid by the insurer in case a claim is filed due to accident, total loss, theft, or damage.
  • The amount of IDV varies with respect to car models, variants, date of manufacture, and locality.
  • IDV helps in valuation of your car; any policy that offers lower IDV is cheaper, but carries reduced cover.
  • Zero Depreciation Cover
    • Whenever you file a claim for your car insurance policy, insurers are known to provide reduced cover due to depreciation.
    • Through Zero Depreciation Cover, such deduction is waived off, thereby enabling you to avail higher claim amount.
  • NCB
    • NCB stands for No-Claim Bonus
    • It is the discount given by the insurer to the policy holder at the time of renewal.
    • This discount is available when the policyholder doesn’t file a claim in the given policy year.
    • NCB starts from 20% for the 2nd year and extends up to 50% for the 6th
  • Third Party Cover
    • Third Party cover is also known as liability cover.
    • It will protect the vehicle owner against any financial liability arising due to damage caused to any other person or property.
    • Third Party Cover is a mandate by Law.
  • Personal Accident Cover
    • This cover offers financial safeguard against any kind of bodily injury or permanent disability caused during accidents.
    • It is an optional cover, and not insurers offer it by default.
  • Collision Cover
  • Optional cover that is available to pay off for damages caused due to collision.
  • Comprehensive cover
    • This includes collision as well as third-party cover.
    • It also includes the cover extended by add-ons.

Join over 25,000

of your peers and receive our italk (insurance talk) newsletter with actionable advice on travel, motor, health and home needs right in your inbox!

*We won't spam you, promise

Leave a Reply

Your email address will not be published. Required fields are marked *