Insurance

Have a Car Insurance and Stay Out of Trouble

THE GENERAL NOTION

People generally have an underlying notion that motor insurance is dispensable and trivial. They believe that paying premiums is an added expense, especially when one is not making any claims. What they fail to understand is the importance of financial security and protection that an insurance cover offers at the time of an accident.

Accidents and mishappenings are an inevitable part of human life. With the population increasing by multifold and the traffic on the road on a constant rise, car crashes and accidents are not rare. Therefore, anyone not getting himself secured by going for a car insurance policy is taking a grave risk.

IMPORTANCE AND TYPES OF POLICY

Today almost every Indian owns a vehicle, whether a two-wheeler or car. The decision of owning a vehicle should be preceded by choice of going for insurance. There are two types of motor insurance policies:

THIRD PARTY INSURANCE

The coverage under the third party plan is limited to financial protection against injury to third-party and damage to third-party property. In this policy, coverage is not offered for any losses to the insured vehicle and its owner. As per the Indian Legal System, third-party car insurance policy is compulsory for vehicles.

COMPREHENSIVE CAR INSURANCE

 In comprehensive car insurance plans, complete coverage is offered to the insured person. The extent of coverage includes coverage against third party liability and own damage. In own damage, the cover is offered against damages to vehicle and any injury to the owner or driver if the car is involved in the accident.

THE FEATURES OF AN INSURANCE COVER

People, especially those who are extremely confident about their driving skills should understand an accident can occur even when you are not at fault. Therefore, it is important to secure yourself against the unforeseen circumstances that may land you and your loved ones in trouble. Car insurance acts as a shield against financial expenses and losses due to road accidents. 

Simply put, car insurance is a contract between an insurance company and a policyholder. The insurance providing company pays the customer for all the losses that are mentioned in the policy. In exchange of this, the policyholder pays a premium to the company.

  • An insurance policy covers an insured person against liabilities of third party life as well as property damages. Which means that if a third party suffers damage which was caused by the vehicle of the insured person, the expenses due to these losses will be borne by the insurance company.
  • Any damages due to man-made events such as riots, burglary, theft or any other similar activity.
  • In some of the policies, medical cover is also offered. This medical cover includes expenses for the treatment of any injury, compensates for the loss of wages, covers expenses due to rehabilitation and funeral costs.
  • The car insurance policy cover also includes any damage to vehicle or theft of vehicle’s belongings (needs add-on cover).
  • Any damages which are caused due to natural calamities such as fire, flood, or landslides.

MOTOR INSURANCE- AN INDISPENSABLE NEED

Things all vehicle drivers should keep in mind before going for a car insurance policy.

Unfortunately, most of the driver refrain from reading as well as understanding the policy and the clauses associated with it. Most of them do not give a thorough read to the policy document and usually ignore the “disclosure” clause until they face the situation when they have to make the claim. In case a second-hand car is purchased the new owner of the car needs to make sure that the previous owner’s cover is null or void. This applies even if the transfer documents have not been materialized.

Anyone who is behind the wheel and is on the road holds the responsibility of the vehicles and of the accidents in which the vehicle is involved. He has to ensure not only his own safety but of his fellow passengers, fellow drivers on the road and of the pedestrians as well.

In case things go wrong, having a car insurance policy is a reasonably the best thing to protect oneself.