It is that time of the year when people are looking towards fulfilling those long-held goals. If buying a car is on the cards, it can be an exciting and equally daunting experience, with all the research, planning and saving done beforehand. Also, a motor insurance policy becomes mandatory to protect the newly bought car. It not only ensures overall protection of the vehicle from unwanted incidents but also assures complete peace of mind. While the awareness and adoption of insurance has picked up in India in view of mandatory third-party insurance for vehicles, however, people often consider the purchase as a mere formality and rarely pay attention to the many benefits that can be availed. can be raised. Choosing a policy
Insurance is not just about low premiums but also about choosing the right features and add-ons and a direct insurer who can make claim settlement easy and hassle-free. If buying a car is also on your wishlist, do not forget to check these five pointers for the right motor policy:
Understand the need for insurance
Owning a car in India is still considered a luxury and people take utmost care to protect and maintain it. Considering the road conditions, traffic hazards, and road rage due to frequent accidents, it is advisable to insure your vehicle only with the right plan. Also, the Indian Motor Vehicles Act and the Indian Road Safety Act mandate all car owners to have their own damage insurance for one year and third party insurance for three years, failing which can lead to heavy fines. Own damage insurance policy acts as a shield against the expenses incurred in case the car gets damaged in an accident, natural calamities, man-made calamities, fire etc.
Hence, it is important to compare different policies and understand the key features while choosing the right cover. Quick online research will uncover a number of insurers with comprehensive coverage for injuries, breakage and death.
Listen to the dealer, but do your homework
It is an age-old rule in India that car dealers sell insurance along with the car. The cost of insurance is sometimes added to the total price of the car, or customers are led to believe that this is how the system works.
Fortunately, this is a myth, and there is no law in the country that compels one to buy insurance from a dealer. In today’s digital age, there are many insurers who offer comprehensive cover with the right add-ons, often depending on the requirements. Buying direct from the insurer ensures that the policyholder does not pay for unnecessary principles in coverage and guarantees savings of up to 20% in premium cost. Moreover, new-age insurers work with a digital-first approach, and hence, there is no paperwork and the end-to-end process is hassle-free.
Know about claim settlement ratio
Claim settlement ratio is an important parameter to measure the reliability of an insurance company. It helps in understanding the likelihood of the insurer recovering the loss and tracking the past performance of the insurer. Insurance Regulatory and Development Authority releases data on claim settlement ratio of insurance companies. Using this ratio, a company’s ability to resolve disputes can be determined.
Check Insured Declared Value (IDV)
Insured Declared Value (IDV) is the amount that the insurer pays in case of vehicle theft or serious damage to the vehicle beyond repair. IDV should not be confused with the market value of the automobile; This is simply the maximum amount the insurance will pay in light of any uncertainty. IDV is declared by the owner of the property while insuring the property. Hence, it directly affects the premium payable – higher the IDV, higher the premium.
claim settlement process
The most important aspect of having an insurance policy is the fact that in times of crisis, it guarantees assistance. One can rest assured that the damages will be covered by the insurer and the experience will be hassle free and convenient. New-age insurers use technology to stay in touch with customers at every stage of claim settlement and ensure that no time and energy is wasted in the process. Insurtechs today are betting heavily on technology to reduce the lag faced by customers when it comes to settling their claims.
to round it
Buying a car is always a special moment and buying vehicle insurance should be given as much importance as it is given to the vehicle itself. Hence, before making a buying decision, it is imperative to understand the need for car insurance and other features that are attached to the policy to ensure the best buying decision.
This article has been written by Mayank Gupta, Vice President – Auto Insurance, ACKO. All views are personal.