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Tag: Car insurance

  • Monsoon care: Top automobile insurance coverage add-ons to save lots of your car throughout rains

    For those that see insurance coverage add-ons as extravagant spending, they have to perceive {that a} complete automobile insurance coverage coverage could solely cowl among the damages and depart individuals with a hefty restore invoice. Therefore, it’s essential to go for automobile insurance coverage add-on covers.

    “In mountainous areas, landslides trigger heavy harm to automobiles. Sometimes, this harm is also whole loss harm (i.e., the automobile can’t be repaired). Furthermore, harm equivalent to a tree falling on the car attributable to heavy rains is one other widespread incidence for which policyholders should go for motor insurance coverage add-ons, particularly earlier than the onset of monsoon season,” explains says Nitin Kumar, Head – Motor Insurance, Policybazaar.com.

    It is not necessary to buy all the add-ons and car owners can opt for those which suit their needs and are required the most as per their location of residence. It is not necessary to buy all the add-ons and car owners can opt for those which suit their needs and are required the most as per their location of residence.

    Types of car insurance add-ons required during monsoon

    Engine Protection Cover: The car’s most crucial part is its engine, which means it requires extra protection against damages, especially during monsoon.

    “People who live in areas prone to floods or water-logging must opt for this add-on. Engine protection add-on safeguards the policyholder from financial hardships due to damages like liquid/water ingression, an engine malfunction, hydrostatic lock or leakage of engine oil, etc. It also covers the replacement cost of damaged engine parts,” says Nitin.

    24×7 Roadside Assistance Cover: At instances, individuals face car breakdowns in the course of highways amid heavy rainfall. In such instances, 24×7 roadside help cowl generally is a rescue for insurers. This insurance coverage helps car homeowners get skilled assistance on time in order that the issue is mounted at an reasonably priced value.

    Zero Depreciation Cover: This add-on protects the policyholder from practically all types of car harm. It protects all of the car parts. Whereas, there’s 50 per cent protection for tyres, tubes, and batteries.

    Daily Allowance Cover: There is one other rider choice that compensates the policyholder for the price of hiring an alternate car for a number of days as much as a hard and fast day by day restrict when the automobile just isn’t in a situation to run in any respect and has gone.

    Emergency Hotel Accommodation Cover: An acceptable insurance coverage choice for many who are planning a automobile street journey this monsoon. Under this cowl, policyholders will get an allowance in direction of lodge room hire, in case of emergency lodging required attributable to an accident involving the automobile.

    Consumables Cover: Under this add-on, policyholders can declare the restore of their nuts, bolts, gears, and so forth. At instances, nuts, bolts, gears, and so forth, get rusted if the car is pushed on pothole-filled roads. “While it may not value a lot to switch/restore a person merchandise, the mixed value generally is a few thousand. A consumables cowl can defend you in opposition to such bills, in case of unintended harm,” says Rakesh Jain, CEO, Reliance General Insurance.

    Tyre Protect Cover: Tyres face a lot of wear and tear during monsoon season. Having such an add-on helps in financial assistance on full labour charges and tire replacement costs.

    EMI Protection Cover: “If you have an EMI on your car, and if the vehicle is in a garage for more than 21 consecutive days for reparation of damage due to rain, and you cannot use the car, then this add-on will cover the car’s EMIs and pays them to the financer,” explains Jain.

    Factors to contemplate whereas shopping for automobile insurance coverage add-ons

    Rakesh Jain explains that automobile homeowners should consider the wants and dangers of their automobile based mostly on elements like age and situation of their automobile. earlier than taking an add-on. Owners also needs to take into account the frequency and distance of driving and the climatic situation of their space.

    They should additionally examine totally different choices earlier than including on a canopy. They should examine choices accessible with varied insurers, equivalent to options, advantages, exclusions, limitations, and prices.

    At final, he advises automobile homeowners to learn all of the phrases and situations rigorously to keep away from any confusion later. They should undergo vital factors like phrases and situations, eligibility standards, exclusions, and limitations, declare course of, and documentation necessities of the covers.

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    Updated: 29 Jun 2023, 10:25 AM IST

  • How can I retain my automobile insurance coverage coverage?

    I reside in Pune and personal a 2018 Maruti Alto. My insurance coverage coverage expired on 20 January whereas I used to be in a foreign country and I’ve by no means filed a declare up to now. I need to retain my advantages whereas holding the identical protection. What do you advise?

    —Pranay

    Pranay, since you might have had a claim-free yr, you might be eligible for a profit known as a no declare bonus (NCB) which usually acts like a reduction to your motor insurance coverage premium relevant on the time of renewal.

    No declare bonus stays legitimate for 90 days post-expiry of your present insurance coverage coverage. So, in your case Pranay, you might be nonetheless nicely throughout the restrict of 90 days and are eligible for this reward, therefore you need to attain out to your insurer on the earliest. However, since your insurance coverage coverage has expired, the insurance coverage firm might need to do a pre-acceptance inspection as per the rules earlier than supplying you with the insurance coverage coverage.

    There are some corporations that present self-inspection rights as nicely and post-inspection, you should buy insurance coverage on-line too.

    You might be to know that it’s not mandatory to say the NCB profit, however you too can accumulate your NCB over time and relying on the variety of claim-free years, you can be eligible for a reduction in your premium that can vary from 20% to 50%. You ought to know that NCB is relevant on the personal injury (OD) premium and never the third-party (TP) premium of your coverage.

    In phrases of validity, NCB might be terminated in case of a motor insurance coverage declare, however many insurers now additionally provide an NCB safety add-on cowl that retains your NCB even after you file for claims; the variety of claims for this add-on cowl can differ from insurer to insurer.

    You ought to attain out to your insurer instantly and retain the NCB advantages you might have accrued. This can be time to test if you wish to go for any add-on covers to additional strengthen the safety on your automobile.

    Tapan Singhel is managing director and chief govt, Bajaj Allianz General Insurance.

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  • Should I purchase new automotive insurance coverage from my seller or elsewhere?

    My automotive insurance coverage renewal is across the nook. Should I proceed with the dealership’s insurance coverage or verify on-line?

    —Name withheld on request

    There are a number of choices for renewing automotive insurance coverage, each by on-line aggregators and immediately with insurance coverage corporations. It’s advisable to check charges supplied by the seller with these obtainable on-line.

    When renewing the coverage, ensure that to contemplate including key options reminiscent of zero depreciation and engine safety protection.

    My daughter has taken a house mortgage. As dad and mom, we’re the co-borrowers since we’re additionally co-owners of the property being bought. Now my daughter has utilized for insurance coverage in her title towards the house mortgage. The insurer’s consultant has stated that within the occasion of any default by my daughter as a consequence of any unexpected circumstances (reminiscent of dying or everlasting incapacity as a consequence of an accident), co-borrowers is not going to be liable to pay the remaining mortgage. That legal responsibility vests with the insurer. This, nevertheless, shouldn’t be defined explicitly within the insurer’s brochure or coverage doc. Despite this insurance coverage, will we nonetheless be liable to pay the remaining mortgage? We are retired and don’t have any earnings.

    —Name withheld on request

    When providing a house mortgage, most lenders advise patrons to buy time period insurance coverage protection at the least equal to the mortgage quantity. The lender is then made the beneficiary of the coverage by a course of referred to as project. In the occasion of the insured’s dying, the proceeds from the coverage are paid to the lender, which helps settle the excellent mortgage stability.

    As a co-borrower, your daughter can buy time period insurance coverage for the complete mortgage quantity, and it isn’t essential to restrict protection to solely her share within the property. If a declare is triggered, the whole mortgage will probably be paid, and the lender can’t ask for additional fee from different co-borrowers. Moreover, this insurance coverage may be enhanced to cowl everlasting incapacity by a profit rider.

    I’ve a household historical past of hypertension. Do I have to do a medical check-up for buying a time period insurance coverage coverage?

    —Name withheld on request

    A household historical past of sure diseases typically doesn’t set off a medical check-up. However, you might be anticipated to reveal such historical past within the proposal type. You must also declare all of your present well being situations. Insurers often require a medical check-up no matter your well being situations or household historical past.

    The sum assured supplied below time period insurance coverage is linked to your annual revenue. The ordinary restrict supplied is 10 to fifteen occasions of 1’s annual revenue and depends upon the age and the present annual revenue.

    Abhishek Bondia is principal officer and managing director, SafeNow.in.

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  • How to save lots of in your automotive claims throughout monsoon

    As rain continues, you’ll have to bear the misery of driving by way of waterlogged roads. Moreover, you will need to be certain that you haven’t parked your automotive in an space liable to water accumulation or flooding.

    Though you will have protected your automotive with complete motor insurance coverage, you will need to pay attention to admissible and non-admissible claims. While the insurance coverage coverage covers a lot of the damages and losses to your car, some claims usually are not payable below motor insurance coverage you probably have not purchased the required add-ons together with the coverage.

    Kunal Jha, head of motor product and actuarial Digit Insurance, mentioned, “A complete motor insurance coverage helps shield your automotive from any damages and losses because of pure disasters like cyclones, floods, thunderstorms, earthquakes, and many others. However, everybody ought to shield their car adequately by way of engine safety add-ons for full safety. Therefore, should you stay in an space liable to waterlogging or floods throughout monsoons, it’s best to be sure you have such an add-on below the motor insurance coverage cowl. This is as a result of water coming into the car engine throughout monsoons could make it inclined to break. The engine is without doubt one of the car’s costliest components; changing or repairing it may be pricey.”

    “One should remember that the add-on may protect policyholders from engine damage due to water ingress. However, the claim may not be permissible if you drove your car during a flood because the same can be classified as contributory negligence,” added Jha.

    Besides, you will need to additionally know that you simply can’t individually purchase an add-on cowl earlier than monsoons. You should buy an add-on throughout renewal or when buying a brand new coverage.

    Point to notice: If your car will get broken throughout monsoons, intimate your insurer instantly. Collect substantial photograph and video proof and share them with the surveyor in the course of the car inspection. This will safeguard a easy course of on the service storage, and your declare can get settled seamlessly.

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  • Over 50% of autos uninsured: Irdai chief

    Insurance Regulatory and Development Authority of India Chairman Debasish Panda on Monday mentioned greater than 50 per cent of autos stay uninsured which is a transparent indication of the unavailability of ample insurance coverage covers.

    According to Panda, the business has been rising at 11 per cent for the final 5 years however to insure each individual in India, a highlighted significance of insurance coverage as monetary and social safety must be labored upon. “Only then can this industry contribute its part to economic and nation building,” he mentioned whereas addressing a summit organised by the National Insurance Academy (NIA).

    “Growth momentum is expected to remain constant which is a golden opportunity for the Insurance sector which can go from 10th largest to 6th largest,” Panda mentioned.

    LIC Chairman MR Kumar mentioned that even right this moment, solely 3 in each 100 individuals within the nation have a life insurance coverage coverage. “Even though penetration increased during the COVID-19 pandemic, it still is very low and needs to be worked upon by industry leaders. In 2021, India also witnessed the highest growth in high networth Individuals. This led to a huge increase in the consumer’s appetite for better and more customized insurance products and thus, the insurers are looking forward to meeting these needs,” Kumar mentioned.

  • Do the modifications in add-on coverage affect your motor insurance coverage?

    I purchased a ‘Pay As You Drive’ coverage three months in the past. I simply got here to know that insurers will promote it as add-on cowl in motor insurance policies henceforth. How will this affect my present coverage? Also, if the insurer will promote it as an add-on cowl, does it imply a rise in premium in comparison with the traditional motor coverage? Will this  be helpful in any means sooner or later?

    —Name withheld on request

     

    ‘Pay As You Drive’ was first launched by the insurance coverage regulator in 2020 on a restricted foundation underneath a regulatory sandbox. The sandbox permits insurers and the regulator to collect market suggestions for modern measures. Seven insurers had been thereafter allowed to launch usage-based motor insurance coverage. This product was speculated to be provided for a restricted time frame to a restricted set of policyholders. 

    Based in the marketplace suggestions, the regulator in July 2022 allowed all insurers to supply this facility to their policyholders. Each insurer has to file an add-on to implement this characteristic of their coverage.

    Motor insurance coverage is predicated on a standard framework, which is adopted by all insurers. Add-ons are a approach to make modifications to this widespread authorized baseline. You shouldn’t interpret add-on actually to imply extra premium. Objective of this add-on is to encourage extra individuals to purchase motor insurance coverage, and enhance penetration. ‘Pay As You Drive’ will show you how to optimize premium primarily based on utilization. So, somebody who makes use of their car much less, needn’t pay the common annual premium. If policyholders discover that the usage-based premium is inefficient, they might nonetheless have the choice to pay the common annual premium with no linkage to precise utilization. Overall, will probably be a extra helpful transfer for policyholders and can give them extra choices.

    The current coverage announcement wouldn’t have any affect in your present coverage. So, all phrases and circumstances that you just signed-up for the present coverage would proceed as-is until the time of coverage renewal.

     

    I’m 37 years previous and need to purchase a time period insurance coverage for the advantage of my partner and little one.   

    What is the proper approach to choose the perfect insurer? Term insurance coverage is a long-term dedication and I don’t need my beneficiaries to face any difficulties sooner or later. 

    — Name withheld on request 

     

    One of the perfect methods to establish the insurer’s credibility is declare settlement monitor report of an insurer. You should select an insurer with greater than a 95% declare settlement monitor report. 

    Another approach to assess a life insurer’s customer support is the variety of grievances reported towards the agency relative to insurance policies issuance by the agency. Lower the higher. 

    You can examine the knowledge within the annual report put out by Insurance Regulatory and Development Authority of India’s (Irdai).

    Abhishek Bondia is principal officer and managing director, SecureNow.in.

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  • What to think about whereas choosing these new add-ons in motor insurance coverage

    Sanjana topped her college in school 12 and obtained admission to her dream faculty. As promised, her mother and father gave her permission to drive to varsity, round 30 km from their house. She travels 60 km per day and on weekends goes on street journeys with household and pals. On the opposite hand, Ashish, a retired navy officer, prefers to stroll as a substitute of driving over brief distances. He not often makes use of his automobile and drives solely through the weekends, that too for a most of 10-15 km per week.

    Do Sanjana and Ashish (the names and instance herein are just for the aim of illustration) share something in frequent? Yes, the insurance coverage premium of their vehicles which can be comparable by way of mannequin and age, is identical. Despite an enormous distinction in utilization, they need to pay the identical premiums. Isn’t this unfair? But, that is how the motor insurance coverage market has been working in India.

    Motor insurance coverage insurance policies cowl harm to the proprietor’s automobile, and the house owners’ authorized legal responsibility to pay compensation to a 3rd social gathering for demise or bodily damage, or harm to 3rd social gathering property. The premium for personal harm relies on the insured declared worth (IDV), engine capability and age of the automobile. The third-party premium is determined by the regulator, Insurance Regulatory and Development Authority of India (Irdai). But, now, the motor insurance coverage market is altering. There are choices like ‘Pay As You Go’ and ‘Pay As You Drive’ obtainable out there.

    Pay as You Go and Pay as You Drive

    Under ‘Pay As You Go’ possibility, you’d be charged as per the automobile’s mileage. So, you need to declare what number of kilometres you may be driving the automobile through the coverage interval and the insurance coverage firm will cost you accordingly. If your automobile runs for extra, you may high up the premium with the insurer.

    Under ‘Pay As You Drive’, a superb driver is rewarded with bonuses and reductions. If you have got a poor driving historical past, you could be charged greater premium. Here, common speeds, braking methods used, and so on. ,will likely be traced by means of the telematics gadgets put in within the automobile.

    Before you purchase these covers, listed here are two factors to think about. First, you need to select your kilometre slab rigorously. As per your common utilization of the automobile, you may declare the kilometre slab on your automobile. If you have got chosen a decrease slab like 5,000 km in a coverage interval however drive greater than 5,000 km, the insurance coverage firm is not going to present cowl until you top-up the kilometre slab earlier than the expiry of the edge limits.

    Second, whereas the telematics machine will likely be put in by the insurance coverage firm, it might enhance your general premium as the price of the machine might be included within the insurance coverage premium. However, it’s going to nonetheless be helpful as in comparison with a standard complete plan. The telematics machine will share the driving behaviour with the insurance coverage firm every day and you may anticipate some reductions in case your driving historical past is nice.

    Who ought to contemplate these covers

    People proudly owning a number of autos ought to go for these covers as a result of even when a few of your autos are used much less, you’ll not must pay greater premium quantity for personal harm cowl. If the automobile is used much less, you may be charged a decrease premium and vice-versa. People preferring utilizing public transport greater than non-public autos, particularly in metro cities or are working from house, can even contemplate these covers. Go Digit General Insurance firm is the primary insurer to supply this as an add-on cowl to the ‘Own Damage’ a part of the coverage. This cowl will likely be obtainable very quickly out there. Do notice that the third-party premium wouldn’t be affected by these coverages as that’s decided by Irdai.

    Due to the restricted utilization of autos throughout Covid, many individuals renewed solely the obligatory third social gathering cowl. ‘Pay As You Go’ cowl can inspire individuals to purchase personal harm cowl because the premium will likely be primarily based on the automobile’s mileage. It will help in growing the motor insurance coverage penetration within the nation.

    The situations of street in India is probably not ultimate for ‘Pay As You Drive’ protection. Also, many individuals is probably not comfy sharing their information by means of telematics gadgets. Insurance corporations might have to search out some progressive options for such challenges that they may face within the Indian market.

    Dr Pallavi Seth is an assistant professor at Amity School of Insurance Banking & Actuarial Science, Amity University, Noida.

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  • Can a top-up plan for pre-existing well being points assist?

    I’ve a floater well being coverage of ₹5 lakh and I’ve been renewing it for the final 4 years. I’ve some well being points and want to know if I can take a top-up plan any time or solely have the ability to improve the sum insured solely on the renewal of my coverage. Also, if I purchase a top-up plan, can I take advantage of it for pre-existing medical circumstances together with my common coverage?

    —Name withheld on request

     

    A top-up plan works unbiased of the bottom plan. It needn’t be concurrent with the bottom plan renewal date. So, you should buy a top-up plan anytime.

    Whenever you improve your sum assured or purchase a brand new plan, ready interval on the brand new sum assured is relevant from the date of buy. Generally, top-up plans have a ready interval for pre-existing illnesses of between 2 to 4 years. So, should you purchase a top-up plan immediately, you’ll have the ability to make a declare for pre-existing illnesses solely after this ready interval for pre-existing illnesses is over. Do just be sure you precisely disclose your well being situation whereas shopping for the top-up.

     

    My automotive is 5 years outdated and I’ve by no means made any claims on the automotive insurance coverage in these 5 years. However, I’ve seen that yearly, the premium on the coverage will increase barely. I’ve been shopping for the coverage from the identical insurer all these years however the premium continues to rise regardless of this. Do let me know the explanation for this.

    —Name withheld on request

     

    Car insurance coverage premium is a operate of two sections i.e., personal injury and third-party premium. You ought to assess the change in premium in each sections individually. The personal injury part offers protection for loss to your automotive in case of an accident or theft. The third-party part offers protection for any authorized legal responsibility on you on account of private or property loss induced to another person by your automotive’s accident e.g., demise or damage of a pedestrian. 

    By regulation, third get together legal responsibility is obligatory to purchase. The premium is mounted throughout a class of autos, and isn’t dependents on a person’s declare historical past. Over the previous few years, the third-party premium has been on the rise. Own injury premium relies on the Insured Declared Value (IDV) of the automotive, no-claim bonus (NCB) and the low cost supplied by the insurer. 

    First, IDV is the sum assured of the personal injury part. Lower the IDV, decrease can be the premium. Each yr, the IDV of the automotive comes down on account of depreciation. The second issue is the NCB. Since you haven’t made any declare, your no-claim bonus can be rising or stay intact annually. This retains your premium both fixed or brings it decrease. Finally, the low cost supplied by the insurer adjustments yearly. This low cost is utilized on the usual tariff expenses. 

    Insurers supply decrease low cost on older automobiles. However, given the opposite two elements, your premium shouldn’t be rising yearly on this part. If that is so, you must consider different insurers, who might supply higher reductions and assist decrease your premium.

    Abhishek Bondia is principal officer and managing director, SecureNow.in.

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  • Things to know when shopping for insurance coverage insurance policies

    There are quite a few events in our lives once we typically marvel if we’ve got taken the suitable determination. Some of those selections might concern private lives, whereas others are monetary in nature. While the first objective of shopping for insurance coverage is both defending life, well being or property, there are secondary elements to it as nicely. 

    Though it is probably not at all times doable to grasp all of the finer particulars of an insurance coverage coverage, one should look these elements whereas zeroing in on an insurance coverage plan:

    Life Insurance

    Life insurance coverage is maybe one of the simplest ways to compensate for the inevitable monetary penalties which follows a lack of a life. It helps dependents plan instructional and different bills and likewise takes care misplaced earnings.

    Sajja Praveen Chowdary, head-term insurance coverage, Policybazaar.com, stated, “While shopping for a life insurance coverage coverage, be sure to buy what you count on. Double-check some key coverage advantages, together with whole sum, assured, coverage time period, premium quantity, declare ration, and payout. To make your coverage simpler and complete, you may even add riders like crucial sickness cowl, unintended well being profit, incapacity cowl, and many others.”

    Health insurance coverage

    An acceptable medical insurance coverage helps get full protection on the time of emergencies. Primarily, the medical insurance coverage should have the utmost entry age and lifelong renewal to have uninterrupted medical help.

    “The method to select a health policy is to go for comprehensive health insurance that can cover pre-existing health (PEDs) conditions and acute diseases. The health policy should offer a low waiting period and the lowest sub-limits/co-payment to avoid expenses from own pockets. As they may require constant checkups and treatments, the policy should have outpatient disease (OPD) and domiciliary benefits as inbuilt for continuous medical support,” stated Naval Goel, Founder and CEO, PolicyX.com.

    Motor insurance coverage

    Generally, motor (two-wheeler and automobile) insurance coverage seekers purchase insurance coverage for his or her automobiles as a formality with out giving it vital consideration. However, as an insurance coverage seeker, it’s important to be fully conscious of all of the aspects of motor insurance coverage earlier than finalising a coverage. The very first thing to know is that third-party insurance coverage in a motor insurance coverage coverage is obligatory as per the Indian Motor Vehicles Act. Additional, search for a complete insurance coverage cowl that gives full safety towards damages triggered to you and your automobile in an accident.

    “If your automobile is beneath the age of 5 years, you should contemplate shopping for add-ons to get optimum safety towards accidents. Some of the most well-liked add-ons to contemplate in your automobile embody Zero Depreciation, Engine Protection, Road Side Assistance, Return to Invoice and Consumables Cover. All two-wheelers and vehicles include a default Personal Accident cowl with a complete cowl of ₹15 lakh cowl,” stated Tarun Mathur, CBO, Policybazaar.com.

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