A brief study on different types of car insurance policies in India

Car insurance in India is also popularly known as motor, vehicle or auto insurance. These insurance policies encompass all types of cars and assist car-owners financially in case of a road mishap. The terms and conditions of vehicle insurance differs from one plan to another. According to some policies only the vehicle is insured and some other plans have both the motor and the owner insured. Increasing number of road mishaps have triggered the necessity of car insurance in India even more in recent times.

Car insurance in India is an obligation

It is mandatory for every vehicle on road in India to have a valid insurance. It is applicable for both brand new and used vehicles. Owners of used cars need to ensure that the policy is shifted to their names from previous owners within 14 days of purchase. Any delay would result in the incapability of making claims in the event of an accident because the new owner would not be considered as the policy holder. Owners of new cars can opt for an insurance binder if they want to start driving the car immediately after purchasing. This insurance binder is considered as the car insurance policy and it comes into effect instantly. If owners cannot avail an insurance binder they are better to wait until they have their vehicles insured rather than starting to drive without any insurance cover.

Kinds of car insurance available in India

Two types of motor insurance is predominantly available in India. Car owners can choose between plans like comprehensive cover and Third Party Liability cover as per their requirements. Many people in India that newly owns a car make the wrong choice of insurance cover. This is primarily because they are not well aware of their needs so they cannot make the right choice accordingly. Another reason of making a wrong decision is they don't know about the features of both these types of car insurance plan.

Comprehensive cover

Under a comprehensive cover, both the vehicle and the owner is insured. The coverage of a comprehensive car insurance policy includes damages of motors and accessories because of man-made losses like theft, violence, natural disasters such as earthquake, fire or storm or any type of explosion. The cover limit and premium amount of comprehensive plans vary according to the policies offered by various insurers.

Third Party Liability Cover

This type of insurance policy shields car owners from legal liabilities arising out of an accident. The plan covers third party injury, property damage and death of third party and offer protection when third party comes up with claims for above-mentioned losses. However, this type of car insurance policy further offers protection for the damages of vehicle. This insurance plan is mandatory in India.

Car insurance in India is gaining significance with each passing year. Although it doesn't cover vehicle's mechanical or electrical issues, it serves a lot of useful purposes. This is why a majority of people in India are opting for insurance as quick as they purchase a vehicle.

7 mistakes that lead to rejection of car insurance claims

You did everything right. You bought the car of your choice and got it insured without wasting any time. Along with the mandatory third party liability cover you also availed a comprehensive plan. You chose to pay high premiums for comprehensive covers considering the fact that in case of any mishap your insurer will pay out all the expenses once you make the claim. But, much to your disappointment, your insurer turned down the claims you made after getting involved in an accident. You have been paying premiums without any break but it resulted into pouring money down the drain as you faced outright rejection to your claims. Let's analyze the reasons why your claims were rejected.

Misconceptions about comprehensive car covers

Most people are under the misconception that comprehensive motor policies cover all types of losses and damages which is far from being the truth. A comprehensive plan only covers only the following;

• Third party liability
• Accidents
• Collisions
• Theft
• Damages of vehicle due to natural disasters

Breakdown and wear and tear can also bring about damages to vehicles and if such an incident happens no car insurance plans in India will provide coverage. There are some other reasons as well that can turn down one's insurance claims.

If you repair your car on your own and inform your insurer later

Almost all car-owners commit this fatal mistake. They renovate their cars after a mishap and intimate their insurers afterwards. Insurance providers, having failed to trace the mishap and repair reject the claim request. Therefore, one should always inform the insurer as soon as possible after the accident. A representative on behalf of the insurer will inspect the site of accident, measure the nature and cost of mishap and estimate the claim amount accordingly.

Installation of a LPG or CNG kit and not having it covered in the plan

Many people face rejection of claims simply because they did not cover the LPG or CNG kit installed in their vehicles. Even if the damage is not related to that kit, insurers will turn the claim down if the kit is not covered in the plan.

If you forget to transfer the policy in your name in case of buying an used car

The name of the car-owner is registered in the policy copy not the name or model of the car. Therefore, if you buy a second-hand car you have to shift the name of the car-owner in the policy copy within the stipulated time period. Your claims will not be settled if you don't transfer the cover in your name in time.

If the driver of the car lacks authentic driving license at the time of accident

If you have driven your car at the time of accident without a valid license your claims will be dismissed. On top of that, if you were under the influence of drug or alcohol at the time of accident your claims will not be settled.

If your vehicle is used for commercial purpose

If it is found out that you used your vehicle for commercial reasons in spite of being registered as a private vehicle at the time of mishap your insurer can rightfully refuse the claim.

If the car is not parked in parking zone and loaded with more passengers than capacity

If you violate traffic rules by parking your car in no parking zone and load your car with more passengers than capacity your claim request will not be granted

If you fail to notify your insurer in time after the mishap

Your insurance claims will be refused if you don't intimate your car insurance provider within the stipulated time.

Now that you know the reasons behind claim rejection, hopefully you will not make any of these mistakes next time and get the claim that you deserve.

Know the right ways of choosing the right health cover

Although internet has simplified the process of buying a health insurance, the selection of the right policy is still a confusing task. Since all insurers offer seemingly identical plans you might be tempted to grab the least expensive policy. However, all health plans are actually unique in terms of claim procedure, coverage and exclusions and most importantly premium amount. So, you need to weigh several different factors before taking the final plunge.

Coverage

The sole aim behind securing a health policy is to stay covered from expenses due to medical treatments. This is why it is one of the most important parameters that you cannot afford to ignore. First of all, you need to determine the coverage amount and who do you want to cover in your health plan. Once you sort out these things you can compare health policies that meet your requirements.

Maximum entry age and age limit for coverage

All health insurance providers in India cover their insured people up to a certain age. However, this limit is determined by insurance providers. Some insurance firms offer lifetime coverage as well which can be a good deal for you if you want to stay protected throughout your life. Furthermore, most insurers also impose an upper age limit to qualify for a health plan. It is very difficult to buy a health plan in India beyond that stipulated age limit. So you need to do research and find out which insurers offer most lenient terms and conditions.

Sub-limits on various expenses

Even though insurance companies claim to cover their customers from a range of expenditures they do come with sub-limits for almost all facets of expenditures in the likes of hospitalization charges, ambulance cost, room rent, diagnostic tests, medication and consultancy fees. While going through a plethora of plans you need to weigh these sub-limits on the basis of the expenses in hospitals that you usually visit and distance of those establishments from the location of your residence.

Keep a close eye on what's not covered

There are some specific treatments and diseases that no health plan in India generally covers. Some treatments are permanently excluded from coverage and some other come with time-bound restrictions. You have to go through policies to see what treatments are left uncovered. This will help you in shortlisting some plans that do cover certain diseases and treatments that you want to include in the coverage of your health insurance.

Check out the waiting periods

Most insurance policies don't cover medical costs of pre-existing diseases up to certain number of years. Many insurers compel their policy holders to wait for as long as 4 years. If you don't get the required treatment in time the whole purpose of taking a health insurance is defeated. Hence, you need to trace out a health insurance provider that offer friendly waiting periods.

Claim-loading charges

It is a known fact to you that you are eligible for claim-free discounts or bonuses if you manage to spend a year without making any claims. But, are you aware of the consequences of making claims? Your insurer will most likely to charge you for loading the claim. Therefore, once you settle with a particular insurer you should make queries about rules regarding claim-loading.

In essence, these are the aspects you need to compare to unearth anideal health policy.