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.  

Online Travel Insurance is the way to go

We all look for a respite when tedious life makes us weary. A well-planned vacation to a dream destination is the best way to rejuvenate. What are the things that strike your mind first when you plan a holiday? Aside from booking hotels, getting flight or train tickets and packing your bags, an online travel insurance policy is what you should include in your planning. Many people consider it as a waste of money but a suitable travel cover offers peace of mind to the travelers by protecting them financially in time of any untoward incident.

Travel Insurance

A travel insurance in India is now lot easier to obtain thanks to the Internet. An online approach to buy travel insurance also saves lot of time and effort which is highly advantageous because when you are rushing with last minute packing you hardly have any time to visit different agents and discuss about travel policies. Here are some steps that you need to take to grab a travel cover that meets your needs to perfection.

Extensive and unbiased research

There is no escape. You need to delve deep into internet and spend some time in researching. Prior to research, you need to select a particular type of travel plan. Once you know which plan you want you have to search for insurance providers that offer such plans. While researching you will come across many popular insurers, however, instead of being influenced by big names you should rather focus on the plans along with their coverages and premium amounts. If you have a specific budget you can resort to various insurance comparison portals. Upon submitting your budgets, these portals will endow you with a plethora of travel covers to choose from.

Selection of the right plan

You should not rush to make the final selection. Once you get hold of a good travel plan you need to go through the policy wordings. You need to ensure that your chosen policy will protect you regardless of country and type of illness. You should also confess if you have any pre-existing illness beforehand so that your insurer don't reject your claim in time of an emergency. Keep an eye on the list of exclusions of the policy as well when you are finalizing a travel plan.

Comparison of quotes

Now that you know which plan would serve your purpose best you would definitely look to secure that cover by paying the least. Insurance comparison portals will help you compare quotes offered by various insurers in India. When you enter your personal details you will be provided with an array of quotes with key benefits and exclusions. The customer care team of an online insurance comparison portal will also guide you to make an informed decision. By comparing different quotes you can trace out the most affordable travel plan that matches your requirements.

Purchasing process

You did all the hard work of researching, selecting and comparing of travel insurance in India. Now, it is time for the final step of buying the plan you have been looking for. Most reputable online insurance comparison portals are armed with safe payment modes. You need to click on the buy button and make the payment through your preferred mode. Within a few minutes, you will be provided with a soft copy of your travel plan.

Go online and buy travel insurance from the comfort of your home. Enjoy every bit of your vacation with a comprehensive travel cover.

Not satisfied with your health insurer? Renew your plan with a different health insurance provider

People of India are more or less familiar with the concept of the portability of mobile number. Similarly, health insurance portability has also come into existence in India. The IRDA has made it possible for policyholder to shift their health policy on renewal from one insurance provider to another, without having to lose any benefits.

This ground-breaking step has been greeted positively by most policy holder in India as they can continue with the least base cover which remains static across all insurance providers. In the past, when a policy holder fell sick during the term of an earlier policy term, the new insurer considered it as pre-existing condition. This is the reason why many insured people, especially senior citizens found it utterly difficult to switch to a new insurer even if they were dissatisfied with the incompetency of their exiting insurers.

However, things have changed now; and have changed for the better. Now, you can rightfully change your insurer at the time of renewing your existing health cover. Even after being shifted to a new insurance provider you can still enjoy all the benefits that you have accumulated during your policy term with your previous insurer. With the advent of health insurance portability in India you don't have to lose benefits such as waiting period to cover pre-existing conditions.

The same rule applies when you switch from one health plan to another with the same insurer as well. 

Privileges of insured people

IRDA have come up with a set of privileges to facilitate policy holders so that they can make the most of the concept of portability of insurance plan. The followings are the advantages that insured people would definitely appreciate;

• All insured persons can shift their policy to and from any specialized health insurance firm or any general insurance provider
• Both individual and family health policies are portable under the new scheme
• New insurers must provide insured people with the credit that they have accumulated with their previous insurers pertaining to the duration of waiting period for pre-existing diseases
• Insured people are entitled to receive up to the sum insured under previous policy as a minimum by the new insurer
• Both new and old insurers have to complete the shifting of policy within the deadline proposed by the IRDA

Conditions that insured people need to fulfill

• Insured people can switch their health covers only at the time of renewal. This means they will start a fresh insurance period with a new insurer. 
• All terms of the new health policy such as the the premium amount will be deiced by the new insurance provider  except for the credit for waiting period
• Policy holders must do the followings 45 days prior to the date of renewal

1. Write a letter to their previous insurance provider making a request for a shift
2. They also have to specify the name of the company to which they want to switch their existing health plans
3. Most importantly, policy holders need to renew their plans without any break. A 30 day grace period is available if shifting is under process. 

IRDA Facilitation

IRDA has lately come up with an online facility to avail and maintain data regarding all health insurance plans provided by insurance firms to individual policy holders. This enables new insurer to which insured people are keen to shift to access tall the required information so that it can be accessed by the new company to which a policyholder wishes to port his policy. Furthermore, new insurers can also gain information on history of health plans of the policyholder.

Some disadvantages of porting health plan to new insurer

In the past, majority of health covers come with one year contract. Policy holders that don't make any claim are usually entitled for various forms of bonuses such as premium reduction or higher sum assured for same premium. Under the present scenario, when an insured person changes his or her insurer he or she would miss out on bonuses and have to continue paying the base rate. The portability will also going to impose problems for senior citizens as most insurance providers are not keen to sell new health plans to elderly people. In essence, the portability diminishes the benefits of customized health plans.

However, these downsides matter little compared to the set of privileges that insured people can enjoy now. Health insurance portability further ensures that online comparison portals will play more significant role to decide on the perfect deal.

This has proved to be gift for a millions of policyholders in India. This move ensures that the insurance firms in India can no longer take their clients for granted. Insured people in India are not forced to stick to any particular insurance company on permanent basis. They can shift their health policies at the time of renewal when their existing insurers would stop covering the risks. Most importantly, these insurance providers will come up with more customer-friendly insurance product in order to to retain their policy holders for years and they cannot turn down any claim frivolously as well.  

Transfer of insurance is a must while buying an used car

The market of used car in India is thriving of late. There is an array of reasons that have triggered such rapid growth. Most importantly, used car market helped middle-class and lower-middle class people achieve their dream of buying a car. Furthermore, this market also helped people purchase expensive luxury cars at an affordable price.

A recent survey revealed that an increasing number of people are on the lookout for used vehicles these days. The demand for used motor is a whopping 1.5 million every year in India. Automobile manufacturers also have realized that the market of used vehicle is booming and have enough potential to generate high revenues.

If you are seeking an used motor in good condition, there is a good chance that you get a good deal if you can shop around. However, you should also be aware of the downsides of buying pre-owned vehicles. These automobiles, more often than not, don't come with OEM parts or necessary documents regarding taxes and insurance and warranties.

Certified used car showroom

In a bid to curb this issue, automobile makers have not only called for certified used car outlets all over the country but they have also made it essential for dealers to come up with used motor showrooms. These showrooms have proved to be highly beneficial for both vehicle sellers and buyers. These outlets provide sellers with many value-added services.

• They get the best price available in the market.
• Experts examine their motors intensively
• They are also entitled to choose any other vehicle from the car-maker range.

Buyers on the other hand, are also provided with a lot of services as well. They receive insurance, warranty on the used vehicles that are minutely checked by experienced and trained technicians.

If you are planning to buy an used car, the present scenario will surely make you feel delighted. With the advent of certified used car outlets you can always fancy buying a previously owned vehicle in good condition and at a much-reduced price. Wait, are you aware of the laws regarding the transfer of policy while buying an used motor?

A valid policy is mandatory for any vehicle in India because, should any accident occurs insurance companies pay the repair charges only if there is an authentic policy on the vehicle. If the concerned vehicle is not insured at the time of a claim the insurance organizations can rightfully deny claims regarding repair costs. And the same goes for used automobiles as well. Transfer of car insurance needs to be done within 14 days after the transfer of ownership. New owners will not receive any claim if the policy remains in the name of the previous owner. New owners need to be mindful of the fact that policy does not automatically transfer at the time of ownership change. And, it is the responsibility of the new owners to check and ensure that the policy is transferred in their names. The policy transfer can take place parallel with ownership change because new owners can provide same set of documents to the Insurer.

An incident in the capital of India has proved the significance of car insurance transfer of used vehicle. The new owner, residing in South Delhi bought an used car but didn't have the policy transferred in his name. When the vehicle met an accident the insurance company denied his claim since the policy was in the name of the ex-owner at the time of mishap. After a long legal battle, the State Commission found the new owner guilty of not transferring policy in his name within 14 days of ownership change and finally the new, suffered owner didn't get any claim whatsoever. By now, you must have realized that any negligence regarding car insurance transfer can proved to be very costly.

You need to gain some information on how used motors are sold and bought in India so that you can avoid any legal issue in time of any mishap. In simple words, an owner sells out his or her used vehicle to the dealer and receives either a new or an used motor in return. However, dealers usually are reluctant to be the owner and they generally waits until the vehicle is sold again so that the policy can be shifted to the current owner. Hence, all buyers and sellers need to streamline the car Insurance formalities. This will help both of them avoid any complication due to the negligence of dealers.

Most motor owners in India tend to overlook the importance of having an authentic insurance. And this kind of negligence and over-dependence on agents can proved to be fatal because agents do take advantage of unsuspecting customers. An increasing number of people are nowadays on the lookout for used vehicles. Hence, they should be aware of the correct information pertaining to car insurance so that they can take necessary action at the time of buying an used vehicle and avoid unwanted legal hazards and financial loss.

What to look for in a personal accident insurance policy

A personal accident insurance policy is as important as life, home, car and credit insurance. It comes in handy if you ever meet with an accident. There are various benefits offered by this kind of plan. We will be discussing in this article, what you need to find out about the policies before choosing any particular one.

What are the benefits?
The different benefits of accidental insurance are reimbursement or coverage against partial or permanent disablement resulting from accident, temporary disablement, and accidental death and so on. You can get coverage for the expenses incurred for getting the right kind of treatment during your stay in the hospital. The amount that you can get in the form of reimbursement depends on the type of plan you are going to buy. It also differs from one company to the other and the amount of premium you pay.

Features you need to look for

The different features you need to look for in case of these plans are:

• The options you have – There are various companies who have on offer numerous kinds of policies for personal accident. So, you need to make sure that you look into the types available and find out the one that would be suitable for you, as per your needs and affordability. 
• The amount of coverage you can get – Prior to buying a policy, you need to find out the coverage amount that the companies offer. The more the coverage, easier it will be for you to manage the expenses. However, you also need to understand that high coverage means high premium as well.
• Who is covered by this policy – Find out the people who will be covered under this policy. If you have any doubts as to who and how a person will be covered, make queries to the insurance company or agent you are dealing with.
• What is the term of the policy – You need to know the term of the policy before you buy one. This feature differs from one company to the other, but the usual coverage is for a year. That is you will have to pay the premium for a year and make claim in that year itself and renew the same if required.

The above are some of the features you need to consider before buying a particular policy since you will be investing your hard earned money in the same. Therefore, before you start investing you should make sure if you are buying the right product for yourself.