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Vehicle Insurance: Types and how to claim it ?

12 October, 2018

Your vehicle is one of the most valuable possessions of your life. Thus, it deserves the best care and protection. Motor insurance is designed to protect you, as a vehicle owner, from third party liability as well as damage to your vehicle.

 

 

According to the Motor Vehicles Act, all vehicles plying on public roads must compulsorily have Third Party Liability insurance. This protects the owner from any liability arising from third party death, injury or property damage. From September 1, 2018, all new private cars purchased must have compulsory insurance for a three year period and for two wheelers, the same applies for a five year period.

 

Package policies covers both third party liability and own damage. Own damage insurance protects the vehicle owner from financial loss from loss of or damage to the vehicle itself. This is not mandatory but it is recommended that the owner purchases this cover as well.  Own damage insurance provides cover for loss or damage caused by fire, accident, flood, landslides, theft, malicious damage, riots and other such perils.

 

There is also a personal accident component to motor insurance. This insurance provide fixed payout based on the death or injury to the subject person. This could be the driver, named or unnamed passengers and owner when he is driving. The payout is calculated by applying a rate based on severity of injury to the Capital Sum Insured (CSI) mentioned in the policy.

 

There are different policies for different classes of vehicles:

 

  • Private Car policy for vehicles owned by individuals or other entities which are not used for commercial use such as for hire and reward.
  • Two wheeler policy for motorcycles, scooters and mopeds, not used for commercial purposes.
  • Commercial vehicle policy is used to protect goods carrying vehicles, taxis, buses, and all other types of vehicles.

 

What’s not covered under this policy?

 

  • Wear and tear of the vehicle
  • Claims that arise due to contractual liability
  • Any loss or damage due to nuclear perils or war
  • Mechanical and electrical breakdown
  • If the vehicle is used outside a prescribed geographical area
  • Aggravated damage
  • If your vehicle is driven by a driver who does not hold a valid license

 

How to claim under vehicle insurance policy?

 

If you have a vehicle insurance policy, then you need to make sure that you file a claim immediately after your vehicle is damaged or if you meet with an accident.

 

Procedure of filing a claim:

 

In the case of own damage claim

 

  • Inform the insurance company by calling on their customer services number or other modes and intimate a claim
  • Submit the duly filled and signed (only by insured) claim form along with copies of Registration Certificate and driving license
  • Get the help of the insurance company in finding an appropriate garage to repair your vehicle
  • Do not start repairs or dismantling of the vehicle until it has been inspected by the insurance company (or representative) and type of settlement has been finalized.
  • Other documents such as FIR copy etc. may be requested by the company
  • For cashless claim, once the repairs have been completed, you may collect your vehicle after paying your portion of the repair amount. For non cashless claims, you may pay the repairer in full and submit original repair bills to the insurance company for appropriate reimbursement.

 

Third-party claim:

 

  • Informing the nearest police station is a must
  • Intimate the insurance company as soon as possible
  • Submit a duly signed claim form, along with FIR copy, RC copy and DL copy
  • Other documents that are requested by the company must be submitted at the earliest

 

Theft claim:

 

  • Firstly, inform the insurance company and the police about the theft.
  • The insurance company will be sending a detailed process along with details of the investigator.
  • Submit all documents requested by the insurance company.
  • You must cooperate with all investigations of the insurance company (or representative).
  • If vehicle is not traced, obtain the Non Traceable Certificate from the police and 173Cr.PC issued by a criminal court
  • If your claim is approved, submit any remaining documents before settlement of the claim.

 

Things You Need to Know While Making a Vehicle Insurance Claim –

 

  • Claim should be filed to the insurance company immediately with all the policy particulars.
  • Duly filled-in claim form, signed by the insured, needs to be submitted to the insurance company. Driving license and original registration certificates need also be submitted for verification, along with photocopies.
  • You need to file an FIR where third party injury, death or property damage is involved.
  • Depending on the requirement of the claim, the insurance company would ask you for additional documents, if any.

 

 

Buy it online –

 

With the advent of technology, you don’t have to visit an insurance company in order to buy the insurance for your vehicle. All you need to do is to simply fill out the proposal form online. From calculating premium to paying it, everything can be done easily and instantly online. Royal Sundaram offers industry leading service at affordable prices.

 

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