The Motor Vehicles Act of 1961 mandates the purchase of a motor insurance policy for every vehicle owner. So, whether you are the owner of a four-wheeler, a two-wheeler, or a commercial eight-wheeler, it is important to insure your vehicle against third-party liabilities. One can also buy motor insurance online for a more convenient process. However, in one’s hurry to comply with this mandate, one should not overlook the process of reading through and scrutinizing some important sections of their policy. These sections, directly or indirectly, influence how much coverage you have and the assistance you will receive when you make a claim.
Third-party coverage refers to the payment of liabilities that you owe to a third party in the event of an accident in which your car was involved. However, this coverage may have limitations and exclusions. For instance, if the damage has occurred to the property of a third party, the maximum compensation that the insurer is liable to provide is Rs 7.5 lakhs. Beyond that, the insurer will have to take care of it. This aspect and other conditions become clearer when one analyses the clause properly. *
Besides the conditions for each type of coverage, there is a general list of exclusions as well. This list describes the various instances in which your car may suffer damage, but you would not be liable to receive any money from the insurer. For instance, if your car suffers damage as well as damages another car in an accident, and later, it is found that you were severely intoxicated during the event, then the insurer has full rights to reject your claim. Therefore, whether you are buying motor insurance online or offline, do read through these general exclusions. *
If you are opting for additional protection in the form of a comprehensive plan, then note that this coverage, too, has conditions attached to it. The premium for a comprehensive plan can be estimated and better understood with the help of a vehicle insurance calculator.
A comprehensive plan usually covers damage due to accidents, natural calamities such as storms, cyclones, landslides, floods, and so on, as well as man-made disasters such as theft, riots, strikes, etc. However, this does not mean that damage due to these events is covered under all conditions. Many policies, for instance, have a clause wherein, if you deliberately take your bike out for a ride when your city or neighborhood is flooded and it incurs damage, then a claim for the same can be rejected. *
Claim rejection and grievance redressal
Insurance companies have redressal cells to whom a policyholder whose claim has been rejected can approach. Information regarding redressal and other matters can be obtained in the car insurance policy document. Remember to go through it so that you are aware of what to do in case of a grievance.
Also, note that the wording of an insurance policy may change with time. So, it is important to scrutinize these clauses even when doing your motor insurance renewal as well. *
* Standard T&C Apply
Insurance is the subject matter of the solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.