How you can improve your car insurance decisions

How you can improve your car insurance decisions

Could you imagine that your car insurance can be made much more benificial and worthwhile than the mundaneobligation it usually seems to be ?

As you may be aware that as per the Motor Vehicle Act it iscompulsory for all vehicles plying in the Teritorial Limitsof India to posses a Car insurance.
Out of the two types of car insurances possible to purchase,it is Motor Policy A which is the compulsory one, and it basically covers the vehicles owners legal liability towardsany Third Party Damage/Bodily Injury/Fatal or Non Fatal.

However by paying additional premium at the time of takinginsurance, the compensation the policy pays the third partyfor death/disability,loss or damage to the property, provided Driver was holding a valid license, as well as all costs and expenses incurred by the owner with the Insurer's written consent can be increased to unlimited.

What needs to be carefully looked at and options selecteddepending upon one's needs and uses is Motor Policy B,whichis a comprehensive Insurance Policy for Private cars whichprovides reimbursement of expenses incurred on repairs of accidental damage in addition to Motor Policy A.

For instance the coverage available is for fire,explosion,self ignition or lightening,burglary,housebraking or theft,Riot and strike,Earthquake,Flood,Storm,etc.,Malicious Act,Terrorist Activity,whilst in transit.What about paid driveror passenger death?

Well,additional coverage is also available for 1)WC (workman compensation) for paid driver on payment of Rs.15/- whichprotects the owner in the case of death or injury,2)Passenger death only cover @Rs.5/- for a coverage of Rs.10,000/-(in miltiples thereof,to the maximum coverage ofRs.2,00,000/- per seat/person for total seating capacity) incase of permanent total disablement/death claim.

Would you imagine being insured even when you drive out ofIndia?Yes,some extension of Geographic Limits are also possible for Bangladesh (on payment of additional premium) and for Nepal,Bhutan & Pakistan (only on specific request).Hence a judicous decision has to be made pertaining to one's exactnature of insurance cover requirement.

Tough this policy can be taken for 12 months,it is also possiblefor shorter period at higher premiums.It is therefore advisableto renew the policy before the expiry limit to avoid any uncovered period.

You also have to bear in mind that reimbursement of expensesare limited to actual amount spent on the repairs of the vehicle,to get the Accidented portion repaired (including cost of replacements) subject to 50% depreciation on the cost of Tyres and Tubes.

One has to also asertain before taking the policy, that the Towing charges and spot repairs(actuals) are reimbursed asadditional compensation.

By Rana.