Car insurance is mandatory by law in India. The optimum cover
that you need to hold is the third party insurance. With number of companies
introducing lucrative insurance packages and competition getting stiff each day
some dealers and manufacturers come up with cashless car insurance for
customers during festive season. They say that they will take care of the
premiums for the dedicated tenure and you enjoy the benefits on motor
insurance. The offer entices buyers as it helps them save money on the premium
on this mandatory cover. However, according to automobile industry experts it
is not possible to offer motor policy free of cost. You need to understand the
pros and cons along with the hide charges behind your car policy. Regulations
do not permit motor policies for tenure of more than a year. The dealers merely
give an undertaking to fund the premium when the policy comes up for renewal.
They might have made provisions for these payments.
Dealers bundle these policies with the entire sales package, and
offer to pay the premiums instead of providing a cash discount. Nowadays for
flexible sale they often put across such advertising tactics to provoke
customers in buying motor insurance online. Honestly speaking, these are not
free insurance covers, as an insurance policy can never be offered free. These
policies are like plain vanilla policies without add-on covers like
depreciation, return of invoice, etc. You need to understand the scope of
coverage being offered before signing up. Besides, since the dealer would have
tied up with a particular insurance company to offer the package, your choice
will be restricted.
With the advent of internet insurance world has become
transparent and simple. It is advisable you can compare car insurance features,
benefits, discounts etc. and then buy motor
insurance online on the spot. While buying insurance online pricing could
be better than what is otherwise available in the market. Also, in the event of
a claim, the dealer is likely to be more supportive and manage the liaison with
the insurance company and surveyor. It is advisable customers should take a
close look at these policies before signing up for them.
One more concern is most car insurance policies offered free do
not carry the necessary riders to provide wholesome coverage for a car. The key
factor to consider is the coverage of the policy in terms of riders like
depreciation shields, engine protector, 24X7 spot assistance and vehicle
replacement advantage. That is why you should study the policy to find out
whether it is merely a third-party cover, comprehensive policy or a
fully-loaded package with add-on covers. The customer needs to study the
coverage closely. It is important to have a policy on zero depreciation as the
deductibles could be very high on claims under such a policy. So, compare motor
insurance online available in the market with the bundled cover being offered
to you before making a decision.
Also, if you are signing up for policy, find out how the dealer
plans to honour the commitment. Motor insurance online policies offer various
benefits, discounts and no-claim bonuses. Find out how a claim will affect the
arrangement. Things could get complicated, so it is better to bargain for a
cash discount instead of the bundled cover, if possible. A customer, who does
not make a claim in a particular year, gets a no-claim bonus (NCB), which
lowers the premium for the subsequent year. Similarly, if he or she makes a
claim, he or she needs to pay a higher insurance premium.
Thanks for the information on motor insurance but can you explain me what are the benefits of the motor insurance i just need some information about.
ReplyDeleteWhether one likes it or not, it is legally mandatory to have your car insurance in India. If you are caught driving your car without insurance, you’ll be liable to pay fines and penalties and repeated offenses can lead to bigger punishments under the law.
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