The happiness of owning a car can be short-lived, in case of an unfortunate and unforeseen disaster take place. Anything can happen without prior notice, your car could be stone, it could meet with an accident, it may get stuck and damaged due to natural calamities or the worst of everything it could collide with another vehicle and causes damage of life or property to a third-party. All these circumstances can prove to be extremely annoying and financially burdening.
As such if you want to safeguard yourself from any financial expenses incurred due to any damage by your car, it is advisable to invest in a car insurance policy. Many people think that buying a car insurance policy is merely a waste of money, but it is not true. If you are investing such a huge amount in buying your Car, wouldn’t you want to protect it from uncertainties that may arise in the future?
Understanding Car Insurance
Before you buy car insurance it is important to get complete knowledge about the 5Ws and 1H. That is clear about What, Why, When, Where, Who and How.
- Car insurance is a type of insurance policy that provides insurance cover to your four-wheeler (car). It protects your car from any damage that occurs within the policy period for which you may have to incur heavy expenses. This includes theft, injuries during the accident, and even car repair in case of non-functioning.
- You can easily buy a car insurance policy from any trustworthy insurance company that provides motor insurance. In today’s age of technology, most of the insurance companies provide facilities for buying car insurance online through the company website. Buying car insurance is an easy task as it does not require heavy documentation as compared to other policies. Also, you can compare policies, calculate premiums and renew car insurance policy online through the website. In case you complete your transactions digitally, you will be eligible to avail special premium discounts.
- When should you buy car insurance is a simple question to answer, “As soon as you Buy a Car”. Firstly, it will help you protect your car from the very beginning and also as regulations it is imperative to buy car insurance to at the earliest to avoid future consequences.
Need for Buying Car Insurance:
Many people still think buying a car insurance policy online is a waste of money as the myth insurance claim settlement still exists. But it is not a wise idea to skip on a car insurance policy. The below mentioned five points will help you understand the dire need of buying a car insurance policy online
In India, the Motor Vehicles Act mandates that all the motor vehicles that run in public places must compulsorily invest in a car insurance policy. If not any other insurance coverage, a car owner should at least have an insurance policy that offers ‘third-party liability' cover. It is insurance coverage that provides protection to the third party in case of an accident leading to injury, property damage or death of the other party involved.
Invest now for gaining Future Benefits:
If you want to buy a car insurance policy online in India this means you have to make payment of a certain amount of money at regular intervals to avail the benefits in the future. In simple terms, a policyholder (insured) pays a certain fixed premium or a yearly or semi-annual basis to the insurance company (insurer) that in turn provides financial assistance in times of need. You may have to bear a little extra expense for paying the premium every year that may naturally affect your budget. But isn’t it better to pay in bits and pieces and get protection than bearing the entire financial loss individually?
Saves Time during Accidents:
When you meet with an accident you are both baffled and panicked. You don’t understand what to do, who to call for help and how to handle the situation. But if you have a car insurance policy, you don’t have to worry much, as your insurance company will look after the stressful situation and provide you with all the assistance you need. Your car damage will be repaired; in case of injuries, you will receive proper medical attention and so on. So having a car insurance policy will save time as well as leave you with a peaceful mind.
Complimentary to Health Insurance policy:
A number of Car Insurance plans provide insurance cover for accidental injuries that may be sustained by the passengers in the car as well as the policyholder, if the insurance policy does not have such a provision of personal accident cover. Thus it a car insurance plan is said to be supplementary to your health insurance policy.
Peace of Mind:
Buying a car insurance policy online will free you from most of the unexpected tensions that may ruin your peace of mind. It takes care of your problems as its own and provides help and solutions within the best possible time, thus providing you mental, emotional and physical peace and health.
Types of Car Insurance Policies:
The market is flooded with insurance companies providing different offers to lure customers. But before you buy car insurance policy it is important that you do your homework well. Choosing a car insurance policy online can be difficult, but all you need to keep in mind is your requirements and the budget at disposal. Pick a car insurance policy that suits your demands and provides maximum benefits at minimum costs. Remember, insurance is based on trust and loyalty, thus buy a car insurance policy online from a trustworthy insurance company and be completely loyal towards it to enjoy a healthy and faithful relationship.
It is advisable that you compare different policies offered by various insurance companies to get the best of all. Each company has its own offerings and provides different features and varying premium rates. As such it is better that you compare and analyses the car insurance policy online before you seal the deal. Below are the two main types of car insurance policies that you can choose from depending upon your needs and requirements.
Comprehensive Car Insurance Coverage:
If you buy a comprehensive car insurance policy online, it will help you protect third-party liabilities and will also cover damages caused to your car and you. The insurance company provides monetary help in case of expenses incurred due to natural disasters, theft/robbery, and accidents. A Comprehensive car insurance policy includes an own-damage premium along with a third-party premium. As such the premium rates of comprehensive policy are higher than the usual.
Third-party insurance converges only cover the financial loss and damage caused to the third party due to the policyholders fault. Having this type of insurance coverage is mandatory for every car owner.
Furthermore, each insurance company offers add-on benefits that offer additional protection and safeguards. You can opt for add-on rider if you think that your car insurance policy does not provide enough coverage as per your needs. However, just like a car insurance policy, each add-on has its own inclusions and exclusions with specific benefits. Also, when you opt for an additional cover your premium rate will rise up significantly, but it will also enhance your coverage.
Car Insurance Policy Transfer:
We often think of buying a new car according to the increasing needs to occupy the growing families or if you feel that the car you own needs to be upgraded with the latest version. Buying a new car not only has a tension of arranging the required finances but also selling the old one and transferring the documents and insurance policy correctly to avoid problems in the future.
The transfer procedure of a car insurance policy works in line with the ownership transfer process. As soon as the car is purchased by a new owner, the car insurance policy of the previous car owner stands invalid. As per the provisions of Insurance Regulatory and Development Authority of India, if a settlement claim has to be filed, the person’s name and address have to be the same on both the documents that are the registration certificate as well as the insurance policy. It is imperative as during urgencies the new owner can easily recover damage expenses. This is required because, in case of an emergency, it comes handy for the new owner to recover the cost of damages.
Some important Documents are Required During Along With a Transfer Fee of Rs. 50 During a Car Insurance Transfer Process. The list of Documents is Mentioned Below:
- A registration certification copy (it is also known as form no. 29)
- A copy of the Old insurance policy
- A NOC (No objection Clause) duly signed by the previous insured
- A new insurance application form -
- The insurance company will inspect the car and file an Inspection Report.
- The No Claims Bonus (NCB) difference amount certificate.
For Getting the NCB Retention Certificate From the Insurance Company the Policyholder will Have to Duly Present the Following Documents.
- A letter of request to cancel the policy
- A photocopy of the original insurance policy along with the certificate of insurance (it is also known as Form 51).
- A notice of transfer of ownership of the car (it is also known as Form 29).
- An application for intimation and transfer of ownership of the car (it is also known as Form 30).
- A copy of the registration certificate book carrying the real name of the new owner
But before you transfer your car insurance policy, you will have to transfer the car to the name of the new owner. Only after this process is done, will the insurance company move forward with the insurance transfer procedure. The existing policyholder is required to submit the following documents for a smooth transfer procedure.
- An Application of transfer of ownership
- The Original Registration Certificate (RC) with the new owner's name on it
- The Old Insurance Policy Certificate
- The transfer fee duly paid, if any mentioned
As soon as the above-mentioned documents along within the fees are submitted, within a few days after proper verification, the insurance company will start the process of the car insurance policy transfer and notify both the parties on its successful completion and send the updated insurance policy copy having the new owner’s name.
Get your No Claim Bonus Certificate:
The previous policyholder can acquire a No Claim Bo-nus Certificate from the insurance company if he/she has not applied for any claim settlement during his/her policy tenure. The policyholder can also receive a comprehensive nom claim bonus that can be an advantage for him/her while buying a new policy. He/she can acquire discounts in regards to the same from a new insurance policy in the future by presenting the No Claim Bonus certificate.
You can transfer your car insurance policy when you decide to sell your car to another person easily if you duly follow the instructions and present the authentic requirements to the insurance company. If at any point you are baffled about the procedure of car insurance policy transfer, it is advised that you either contact your nearest insurance company branch or just log into their website for assistance. Once you submit original documents, the process of verification will kick-start and your car insurance policy transfer will take place smoothly and immediately after verification.
It is recommended to carefully follow at the steps as well as terms and conditions to avoid getting in any legal mess. It will not only help you get your work done fast but will also safeguard you from future troubles.
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