Reality: It is mandatory by the law of Indian Motor Vehicle Act, 1961, to protect your vehicle through an insurance plan, whether it is old or new. You may feel that the low replacement value of an old car doesn't justify a comprehensive insurance plan, though remember that old cars have the high probability of theft, due to the demand of its parts. Moreover, old cars are easy to steal.
Reality: Having a motor insurance policy means you are covered for all types of accidents, provided you have a valid driving license. With comprehensive auto insurance, you can get coverage for your vehicle in the event of mechanical faults or damages, theft, flood, terrorism, riots, etc. However, it is a strict no if an accident occurs under the influence of alcohol or drugs. Moreover, your use of the vehicle should comply with what is mentioned in the policy document. For instance, if you are using your personal car for business purpose and meet with an accident, then you can’t make a claim for the damages.
Reality: If you are not aware the fact that no claim bonus (NCB) is sort of a reward given to the policyholder for each claim-free year. It is a substantial amount and will be accumulated year after year if the claim is not made. Your NCB follows you wherever you go. That means even if you transfer your auto insurance from one insurer to another, you can transfer the NCB as well, provided it needs to be filed within 90 days from the expiry date of your old policy.
Reality: A third-party auto insurance policy only covers the damages to a third party and doesn’t pay for the damages to your car. It is hereby advised to take up a plan keeping in mind the condition of your car than its age.
Reality: NCB is your asset, a reflection that kind of proves your driving skills. Only you have right on it. No matter whosoever the insurer you are keen to select, your NCB follows you and you can avail the 100% benefit of it. So, it is completely a fiction that NCB will be transferred once you sell your car.
Reality: Usually, but may not always, especially when you are convicted of drinking and driving. Your insurer turns down your claim straight away.
Reality: Insurance plans are mostly valid for one or two years except for the multi-year plans. And, it is not a fact that you can’t change your insurer. You can change it at the time of renewal with the full benefit of NCB, you earned from the previous insurer.
It is good to add your driver to your policy and it doesn’t require you to have a separate auto insurance policy for the same. The only thing to be ensured is that the driver has a valid license. If not, the insurer wouldn’t accept your claim, in case of an accident.
Reality: Whether you pay or not, your claim will be reimbursed. For online insurance, you can visit a network garage and the insurer directly settles the incurred expense, so no intervene is required. Also, if you are unable to visit a network garage due to some reason, you can claim for reimbursement later.
The claim process of auto insurance is not at all difficult. You just need to log on to your insurer’s website, fill out the claim form by providing relevant information and submit it. Once your claim is registered online, you’ll be contacted by the customer care within 24 hours and they will assist you with further formalities too. Again, if your vehicle is taken to a garage, the insurer takes care of the claim directly and you don’t have to pay a single penny.
|You may like to Read: Car Insurance Claim Process|
This article signifies the need for understanding auto insurance myths and important insurance facts for a car owner. Since it is mandatory by law to have an auto insurance policy, i.e. at least third-party cover, car owners always look for the accurate auto insurance policy. Hereby, it is essential to know how to differentiate the myths and accept the fact. You can have a clear conversation with the insurance advisor about your requirement and he/she can better guide you about which insurance plan to buy for your car.
29 Nov 2023Considering the population of rats in our country, it is common to
29 Sep 2023The concept of Own Damage(OD) is not a new one. For those of us
29 Sep 2023Filing a motor insurance claim can be a complex process, and
29 Sep 2023To continue receiving coverage benefits, it's necessary to renew
20 Sep 2023Having third-party car insurance is mandatory as per the motor