Coverage Under Car Insurance in 2018 By IRDA

For any one who owns a vehicle, it is important for them to be insured under a motor insurance policy according to the Motor Vehicle Act passed by the Government of India. Each company that is selling a motor insurance of any sort must follow the guidelines that are specified by the Insurance Regulatory and Development Authority (IRDA). Any motor insurance can have any number of features and benefits to it however, it is necessary for all motor insurance plans to have a third party liability in the insurance plan. Every individual and vehicle who is insured under a motor insurance plan receives a certificate and an insurance card from the insurance company as proof. Without an insurance policy, the owner of the vehicle can face serious penalty financially and can even go to prison since they have broken a law.

Inclusions of a Car Insurance Policy by IRDA

Every car insurance policy that is provided by an Indian insurance company are meant to have the following inclusions:

• The auto insurance policy will take care of the damages that are caused to the insured vehicle.
• The insurance policy will cover the medical expenses of the insured customer.
• The insurance policy will cover any third party medical expenses or damage to property.
• The insurance policy will cover any damage that is cause to the insured car due to natural causes like lightening, earthquake, tsunami, flooding etc.
• The insurance policy covers for damages caused as a result of man made disasters such as theft, burglary, riots, acts of terrorism and any external accidents etc.

Exclusions of a Car Insurance Policy

For anyone who wants to buy a car insurance policy for themselves, it is important for them to keep in mind not only the inclusions but also the exclusions of the insurance policy. According to IRDA, the exclusions for a car insurance plan include:

• When the driver of the vehicle does not have a license.
• When the driver of the vehicle is driving under the influence of drugs/ alcohol or any other intoxicating drinks.
• If the accident took place somewhere outside the geographical area where the insurance plan is active.
• The damages that are a result of the normal aging of the vehicle.
• If the vehicle is damaged due to illegal or malicious acts.

Determining the Premium for Car Insurance

The insurance premium amount for each and every car insurance that is sold in India is different from one another. The premium depends on the type of car insurance that is being bought and the value of the insurance changes with each insurance company. Some of the factors that play a key factors that determine the premium amount for a car include:

1. The registration details of the car.
2. The age of the car.
3. The model number of the car.
4. The driving record of the car.
5. The validity of license of the buyer.
6. The geographical location of the vehicle under which it is registered.
7. The fitness certificate of the vehicle.
8. The engine number, the seating capacity and the cubic capacity of the vehicle.

The premium for an insured car has to be approved by the IRDA before it is quoted to the customer. In case the premium is extremely high for a car owner, there are several ways in which the premium can be bought down. As suggested by the IRDA, some of the ways in which a car insurance premium can be lowered include:

• Have a no claims discount from a previous motor insurance.
• A certain amount of discount if the vehicle is a member of the automobiles association of India.
• If the vehicle is a vintage car as certified by the Classic Car Club of India, then there is a discount offered on the premium.
• A set amount of discount offered to vehicles that are designed for physically or mentally challenged individuals.
• If the car owner installs an anti-theft device as approved by the ARAI (Automobile Research Association of India).
• A certain amount of discount if you opt for a higher deductible.

Claims Process for Car Insurance Policies

In terms of car insurance, there are two ways in which a car insurance holder can ask to claim their insurance - the cashless claims method or the reimbursement method. Cashless Claims Process - Those customers who have bought their car insurance plan from a renowned insurance company in India have the benefit of claiming their insurance through the cashless claims process. A known insurance company in India will have tie-ups and connections with a number of garages and service centers all over India. Any customer can take their insured vehicle to one of these network centre and fix their insured car completely free of cost. Customers can also ask their insured vehicle to be transferred to an network garage in order to repair their vehicle under the insurance policy. Reimbursement Claims Process - In the case where the customer cannot get his/her vehicle repaired at a network garage, they can take their vehicle to any garage and then ask the insurance company to pay for the repairs of the vehicle. In such a case, the insured is reimbursed from the insured company after sufficient proof is provided by the customer regarding the expenses and the damages that is caused. In certain insurance companies, an inspector comes and checks the damages on the insured vehicle and then reimburses the amount that he/she thinks is the estimate cost.