Best Motor Insurance Agents in Chandigarh
ABOUT INSURANCE AND MOTOR INSURANCE AGENTS
Insurance is a risk management tool meant to protect the insured (person taking the insurance) from financial loss occurring from happening of some event by the insurer in exchange for a premium paid by the insured.
Insurance can broadly be classified in two types:
- Insurance of Vehicles and other Items
- Insurance of Life and medical insurance
INSURANCE OF VEHICLES AND OTHER ITEMS
Insurance covers the cost of damages to or liability arising out of the thing that is insured. It could be your vehicle, expensive items, home, building, business. Infact now-a-days, you can get virtually anything insured from your fridge to computer to furniture.
You must have seen airlines prompting you to book luggage insurance in case it gets delayed or lost. Trend of insuring things is picking up. And there is a solid reason behind it. It insures that you are covered in case something untoward happens to your belongings. We will first start with Motor Insurance:
Motor Insurance: Motor Vehicles Act, 1988 mandates third part liability insurance of all vehicles, be they two-wheeler, four wheeler for personal or commercial use.
This insurance includes cover for injury or death of third party and injury to property of third party. This is mandate of the law to protect the innocent party but otherwise vehicles can be insured in four other ways also:
Insurance of damage to vehicle: In this insurance, you insure your vehicle against any damage that might happen to it due to any sort of accident.
Driver’s/Policy holder’s Insurance: Medical assistance in case of injury to driver and life cover in event of death while he is behind the steering wheel in the insured car.
Third party insurance: With this, if any person other than the person insured with the insured vehicle is hurt while sitting in or by the insured vehicle gets insurance cover. This insurance is necessitated by Motor Vehicle Act, 1988. In case motor vehicle is not insured for third party liability, car owner may be fined upto Rs. 2000 or 3 month imprisonment or both.
Theft Insurance: If your car is broken into and stolen or some parts and/or accessories attached to it are stolen and you have taken theft insurance, insurer will reimburse you the value of your vehicle, accessory or part minus depreciation.
Comprehensive Insurance: Comprehensive Car Insurance has more benefits than any one of the above Insurances. In addition to providing coverage for damage to person and property of third party, it also provides coverage for damage to policy holder’s own car.
Personal accident cover may or may not be included in this insurance. You can take Personal accident cover as an add-on if your insurer does not include it in the comprehensive policy.
WHAT IS NOT INCLUDED IN YOUR MOTOR INSURANCE POLICY?
General wear and tear of car and its parts: As you use your car, it does not remain as it was when you purchased it. The general wear and tear of the car due to its usage is the basis of depreciation calculated by insurance companies. Insured Declared Value (IDV) is depreciated downwards mainly due to general wear and tear. Not just for car and its essential parts, depreciation is also calculated for additional accessories.
To safeguard yourself from this depreciation, you can opt for Zero Depreciation Cover or Nil Depreciation Cover as an add-on to your insurance policy for some additional cost. The details about this add-on are discussed in the Add-on section below.
MECHANICAL OR ELECTRICAL FAILURE OR GLITCH
Your insurance policy does not cover glitch or failure of engine, which can happen any time and leave you stranded at an unknown place. The add-on to protect yourself from such mis-happening is called Engine Cover, which is discussed below.
DAMAGE CAUSED BY PERSON DRIVING UNDER INFLUENCE OF INTOXICATION/DRUGS
Now, this is against the law and we strongly suggest you not to mix drinking and driving. Motor Vehicle Act, 1988 makes drunk driving a punishable offence with punishment varying with the BAC count. BAC (Blood Alcohol Content) is the measure of alcohol in the blood and aforementioned Act makes 0.03% as the start of punishable limit.
It means if you are found with 3 micro-litre of alcohol in 100ml of blood, you will be categorized as drunk and liable to be prosecuted for drunk driving. The higher the BAC count gets, the severe the punishment one has to suffer.
Insurance policies also exclude any liability arising out of any mishap that might happen when the driver is driving car with BAC count of 0.03% or more. Some companies do pay third party claims even in drunk driving cases but policy holder is on his own when it comes to damage to his car or injury to himself. No add-on is available for this damage at the moment.
DAMAGE CAUSED BY UNDERAGE DRIVER OR A DRIVER NOT HAVING VALID LICENCE
This again is an offence under the Motor Vehicle Act, 1988 and offender is punished with fine in both cases. Any damage that such drivers inflict on the car remains outside the coverage of insurance policy and the owner will have to bear the costs himself.
DAMAGE TO CAR WHILE OUT OF INDIA
If you are one of those people who like taking road trips to different countries, this information is for you. Your standard insurance does not cover any damage or loss to property or person in which your vehicle is at fault. You will have to bear the loss yourself.
Apart from all the above discussed covers, you can also opt to add the following covers at additional costs:
ZERO DEPRECIATION POLICY:
Insurance companies calculate depreciation on certain parts of your vehicle at the time of claim settlement which means you probably will have to bear some cost of the repair but if you have taken Zero/Nil Depreciation Policy your insurance company will bear the full cost of repair without factoring in depreciation of the vehicle as opposed to a standard policy in which cost of repair is paid in consonance with the current value of the vehicle/part.
Your insurance company will provide basic facilities like towing, refuelling, changing tyres, arranging for mechanic, towing to nearest service station in case car breaks down. This facility is particularly useful when you are travelling out of your city and your car develops some glitch and stops in middle of nowhere or at night.
It covers the cost of repair/replacement of engine in case any glitch arises in it or engine fails to start due to any reason.
RETURN TO INVOICE
Taxes, Registration Cost etc are included in the value of the car when you purchase it and as soon as you have taken the car out of showroom, its value starts decreasing. And in the eventuality of theft or total loss, your insurance company will only bear the depreciated/current value of the vehicle, to safeguard yourself in such cases, you can take Return to Invoice Cover which offers full value of the vehicle without reducing any depreciation.
DAILY CASH ALLOWANCE
The owner receives this allowance if his car has to be taken to a workshop. The allowance varies from insurer to insurer and depends upon the type of car and is only for a specified number of days in a policy year which also varies from insurer to insurer.
Some instances in which this allowance is not given are when the fault in car is minor or the driver was drinking under influence of intoxication, does not have licence or windscreen is broken or air conditioner needs repairing.
DRIVER ACCIDENT COVER
Yan can add your driver to the accident cover and in case of mishap with the car that results in injury to driver while he is driving that car, he can also reap benefits of the cover.
DAMAGE IN WHICH EVENTUALITIES IS COVERED BY MOST INSURANCE COMPANIES?
Most insurance policies cover the damage occurring due to mishap in natural calamities like flood, earthquake, landslide, typhoon, hailstorm, frost, landslide, fire, explosion, lightning, volcanic eruptions, tempest, tornado, hurricane, cyclone, inundation.
QUESTIONS TO ASK MOTOR INSURANCE AGENT?
if you are about to buy a new car or renew policy for your old car and if you are one of those people who just like to go with their friend’s recommendation or television commercial, you need to read this post.
Different insurance companies charge differently and offer different services, so you need to wisen up, call a few insurance agents (if you don’t know any, you can go through our list of insurance agents in Chandigarh, Panchkula, Mohali), ask a lot of questions that we will help you with, compare the policies, services they offer and premium they are charging and then choose which ever suits you the best and is the cheapest.
So, let’s get start the rapid fire round:
Remember Third party insurance is not an option, you have to take it, it is for other coverage that you will be asking these questions
First, you need to give the agent a free hand in giving you the information about the various policies. Once he is done imparting all the knowledge he has, you must ask these questions for making right decision.
How much will each policy cost and what does it include?
This should be the first question you ask your agent. The cost and the benefits. Not all companies will charge you the same premium or offer you the same services and it is always better to know what you are getting and at what price.
What additional services does the insurer provide?
Most insurance companies are providing 24*7 customer service and roadside assistance, free car pick up, short claim settlement period towing facility, cashless repair at most service stations, to entice vehicle owners to chose them as their insurer.
What add-ons are they providing?
If the default policy package does not suit your needs, you might want to take a look at the selection of add-ons that insurer is providing. Most insurers are offering more or less same add-ons but the cost may vary.
What factors determine car insurance premium?
Make and Model of car: The pricey the car, the more the insurance.
Age of Owner: Insurance company believe more the age, better the experience and hence lower the premium.
Insurance Zone: Premium depends upon the area of the registration of car. Premiums are higher for areas with greater risk of vandalism and theft.
Purpose of Vehicle: Premiums are higher for commercial vehicles as compared to personal vehicles
Safety Statistics: The safer the car, lesser the premium. By safe, we mean, fitted with airbags , gear lock, GPS system etc that make the vehicle safer for rider.
Claim free years: If the policy holder hasn’t made any claim in a year, he becomes entitled to NCB which starts at 20% and keeps increasing with every consecutive claim free year with maximum of 50% off in the 5th consecutive year
What Is NCB?
NCB stands for No Claims Bonus. This is a discount that varies from insurer to insurer depending upon the number of claim free years. Insured gets this discount only when he has made no claim on the insurance policy in the preceding covered year.
As life insurance agents in delhi ,This means insured cannot claim NCB in the first year of insurance.
One more advantage of NCB is once you have earned it, even if you change your vehicle or your insurer, you still get to redeem it in the insurance premium for the new car or while taking out insurance from new insurer.It usually ranges from 20% to 50% of the premium to be paid.
But you cannot transfer it to another person without transferring the ownership of the vehicle too. As in the case of death of policy holder, NCB will be transferred to the legal heir getting the car.
NCB is not given on third party insurance i.e. if you have only taken out third party insurance, you are not eligible for NCB. Even in case of Comprehensive Insurance Policy, NCB is applied after third party insurance premium is deducted from the total premium.