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Insurance of car in India: How to claim, types of car insurance and Car insurance policy

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Insurance of car
Insurance of car

Insurance of car in India: How to claim, types of car insurance and Car insurance policy

Wheather you are an owner of commercial car (vehicle) or personal car. Insurance of car is mandatory in India. So, in this article you will come to known about the complete details of the Insurance of car (car insurance) in India.

What is car Insurance?  

Car insurance is an agreement between the car owner and the insurance company wherein, the owner of car have to pay some amount as a premium. In return of that the insurance company covers for damage or loss of the car. In Inndia, Most of the insurance companies have tie-ups with car manufacturers companies and they offer car owners instant quotes.

Types of Car Insurance in India

There are two types of car insurance listed below which includes

Third party liability insurance cover- It gives the limited safety. This kind of automobile coverage protects you best towards the prices incurred from the damage done via your automobile to any other car, property or individual.

Comprehensive insurance cover- Complete automobile coverage gives cowl in opposition to harm to the vehicle, demise of the motive force or passengers and harm as a result of the automobile to a 3rd birthday celebration automobile, property or character.

Comprehensive car insurance offers cover against damage to the vehicle, death of the passengers or driver and damage caused by the vehicle to a third party vehicle,person or property.

Car Insurance policy Covers the following-

Bodily injury- It offers cover for any bodily injury incurred from an accident where the insured car was involved

Damage- It offers cover for the damage incurred to the car either due to an accident, theft or certain natural calamities

Third party property damage- It pays up for the damage incurred by a third party vehicle involved in an accident with the insured vehicle

Death- It also offers cover for the death of the driver/ passengers present in the insured vehicle at the time of accident or calamity

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Factors that influence the premium of the car insurance

Listed below are some of the factors that influence the premium of a car insurance

Vehicle related factors-The make, type of fuel, model etc, all matter when it comes to determining the insurance for the car premium. Usually diesel cars attract a higher premium when compared to petrol cars.

Location-The premium usually tends to be higher in urban areas and near highways.

Driver-The age and profession of the driver also plays a role in determining the premium of the car insurance . Multiple drivers leads to higher premiums.

Car Insurance clauses and exclusions

Listed below are some of the car insurance clauses and exclusions.

Any issues related to the vehicle due to general aging of the car

Consequential loss

Mechanical breakdown of the car

Wear and tear of car parts such as tires

The policy won’t offer any cover for the damages incurred from using the car outside the geographical location of the country

No cover will be offered if the person is driving without a license

No cover will be offered if the driver was under the influence of alcohol or drugs

Damage incurred to the vehicle during a war or nuclear attack

The policy does not offer cover if the car was damaged while being used for purposes other than what was mentioned in the policy

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How to make a car insurance claim?

Given below is the procedure to make a claim in case your car was involved in an accident or in any other valid incident.

As soon as the accident occurs, the driver or the passenger should note down the number plate of the other car in case of an accident with another car

Contact your insurance company immediately

File a claim with the insurance company and note down the claim reference number

Submit the documents required by the insurance company in order to make the claim

File an FIR at the nearest concerned police station

Advantages of a car insurance

Listed below are the advantages of a car insurance.

Car insurance provides benefit in case of death arising out of accidents

Covers the repair cost of vehicle repairs due to damage caused in an accident.

Covers damage caused by other than an accident for example, theft, fire, etc.

Offers cover for damage caused to third party

Car insurance is a very efficient tool that will protect your dream car against damages and mitigate your costs in case of an accident. There is no dearth of options for car insurance schemes on the market. It is always advisable to compare between different plans and choose the one suitable for you best.