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Did you know – Frequently Unasked Questions

  • At what value should I insure my vehicle ?

    • Insurance must be obtained for the estimated market value of the vehicle. You, the insured are required to check the correct value of the vehicle proposed for insurance, which mainly depends upon the make, model, resale value and the condition of the vehicle. Whatever be the amount you may insure your vehicle for, when it comes to claim settlement, the insurance company will only look at the market value of the vehicle. That value is the highest amount you can claim for. Therefore, you should reset the insured value every time you renew your policy. This will help you in saving on the excess premium you would pay and not get anything out of it.

  • Can I prepay my insurance for a number of years in advance ?

    		•

    No policy can be issued or renewed for a period longer than one year. Infact, premium for a policy issued or renewed for a period shorter than one year is to be charged as per the short period scale of premium. It is not permissible to pay premium in instalments.

  • Have insurance, the company will reimburse me – right ? Wrong. Even if you have insured your vehicle, an insurance cover is invalid when :

    • The person at the wheel does not hold a valid driver’s licence at the time of the accident.

    • The driver is under the influence of drugs or alcohol.

    • The vehicle is carrying persons or goods more than the capacity permitted by the R.T.O.

    • The damage is incurred in a war zone.

    Drive Safe, Pay Less !

    Every comprehensive motor policy is subject to the Bonus / Malus clause. What does all this mean to you ? A lot. ‘Bonus’ as the word suggests means a discount on the premium amount for not lodging a claim. Every claim free car earns a ‘No Claim Bonus’ (NCB) @ 20%, 35%, 50% and 65% for the second, third, fourth and fifth year respectively. This percentage-wise bonus is deducted from the own damage total premium amount.

    Malus means a penalty that is charged if you lodge a claim in the insurance period. So if a policy earns a 20% bonus (on account of no claim lodged in the previous year) and a claim is lodged in the current year, then at the time of renewal, the bonus will be brought down to NIL. In every consecutive year if a claim is lodged, the policy will attract a ‘Malus’ (penalty) ranging upwards from 10% in the second year to 50% in the fifth year.

    Save more money – when selling your old car and buying a new one !!

    Doesn’t seem real. Well, if your past claims record has been great, it definitely can be a reality. When selling your old car and purchasing a new one, you are allowed to transfer your good track record. In other words, you can transfer your NCB to your new vehicle. In all likelihood, when buying a new car, you will buy a newer make and model whose value would be far greater. For example, if you’re selling a vehicle whose premium outflow amounts to Rs.5000 and you enjoy an NCB @ 65%, you’re net premium outflow is Rs.1750 resulting in a saving of Rs.3250. Now, if you purchase a new vehicle, you can transfer your NCB to the new vehicle. What you transfer is the ‘bonus percentage’ and not the actual amount of the bonus. Therefore, if the premium outflow of the new vehicle is Rs.12,000, you will enjoy an NCB @ 65% of this new amount. Thus your net outflow would be Rs.4200 resulting in a savings of Rs.7800 !


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