Motor Insurance
Many possesions in india, are very personal and identifies with owner, Motor vehicle is second only to home one owns. An event causing damage to the motor or injuries to loved ones traveling in it or to thirdparty causes immense emotional, financial & legal distress. Motor insurance safe gaurds the motor owner from all of them. Motor insurance has two parts, Own Damage (damage to the vehicle) and Third Party liability (damage caused by the vehicle) which is complusory as per Motor Vehicle Act 1946.
Value of the motor is agreed value called Insured Declared Value (IDV) which is usually 5% less than the invoice price (when insured for the first time) and on later renewals, new IDV is arrived by depreciating 10% of the previous year IDV. Cover is extended to include all the inbuild accessories like music systems airconditioners etc. If acessories were fitted by the owner later, then such acessories needs to be declared and premium needs to be paid for the same.
No Claim Bonus (NCB) upto maximum 50% is discounted during renewal, if there is no claim during previous policy period. Such amount discounted as NCB along with certain deductable deducted out of the claim amount also discourages the insured to raise claim less than certain amount. This helps the insurer to keep control on cost of processing small claim. NCB earned can be transfer from one vehicle to a new one in case the insured is changing vehicle. NCB can be suspended for a period of three years, in case for such period, the insured is not buying a new vehicle.
Geographical area of the motor policies can be extended to include Bangladesh, Bhutan, Nepal, Pakistan, Srilanka, Maldives.
Depreciation on parts for partial loss claim
- Rubber, nylon, plastics, tyre and tube, batteries, airbag - 50%
- Fibre glass components - 30%
- Glass - nil
- Metal parts - depends on age but maximum 50%.
Bumber to bumber policies doesn't deduct the above mentioned depreciation. These policies are slightly expensive than the normal ones.
