Some people are apprehensive about purchasing car insurance because of several stories floating around regarding how the insurance companies do not honor claims. The important question here is ‘why?’. What was the reason behind the claim being rejected? A common reason for claim rejection is that the claim is raised for an incident that is not covered by the policy.
Every car insurance policy has certain terms and conditions and if the claim application doesn’t meet them, then the claim stands rejected. Therefore, one must make an informed choice before purchasing a car insurance policy by going through the policy wordings. This will help you to purchase a car insurance policy that meets your requirements. And if the time comes, you can raise a claim keeping the terms and conditions in mind so that it is honored by the car insurance company.
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Where to find the policy wordings?
Nowadays, almost everything is available online. When it comes to car insurance, you have two options: car insurance online and car insurance offline. For selling car insurance online, insurers need a website which offers detailed information about their products. Policy wordings can be found on the insurers website, usually under the downloads section. Policy wording can also be accessed by visiting the branch office of the insurance company.
Here are 5 important sections to read in your Comprehensive car insurance policy wordings.
1 – Third-party Liability component
This is the compulsory aspect of policy. The Motor Vehicles Act, 1988 makes it mandatory for all four-wheelers on Indian roads to be insured under a basic, third-party liability policy. This policy insures you against financial trouble in case your insured car damages someone’s property or injures someone. You can get a detailed view about the inclusions and exclusions of this cover in your policy document.
2 – Personal Accident Cover for Owner-Driver
You must go through this section to avoid any confusion regarding the claim amount involved and the injuries covered under this policy. This section contains a table explaining the nature of the injury and the corresponding scale of compensation.
3 – Comprehensive coverage
Own damage component is a crucial aspect of a comprehensive plan. Details related to own damage are clearly mentioned under this section. Such a section is often titled as ‘Loss of or damage to the vehicle insured’. While raising a claim, you have to verify if the event due to which your car was damaged (for example – rioting) is covered in the list of inclusions or not. The insurance company will reject your claim if the claim is raised for an event not mentioned in the policy or is a part of the exclusions.
4 – Miscellaneous Points
Apart from the three major covers offered by a comprehensive car insurance policy, there are certain points that you must be acquainted with. These points include Insured Declared Value (IDV), No Claim Bonus (NCB), Depreciation, Deductibles, Additional covers (Add-ons), etc.
5 – Grievance Redressal
What if you raised a claim properly but it still got rejected? What if you got a fairly low claim amount? Such questions need answers and you can get them by contacting the insurance company on the number, email id, and address mentioned in this section in the policy wordings.
If your issues are not resolved, you can directly contact the insurance company’s grievance officer; the address shall be mentioned in the policy wordings. Even then if you are unsatisfied, you can get in touch with Insurance Ombudsman.
Car Insurance Online in India
Make sure to compare prices and coverage of the policy before purchasing car insurance online in India. You do not have to depend on car dealers or agents to insure your vehicle. You can insure your vehicle yourself by going online and purchasing a policy within minutes. Just make sure to not overlook any clauses and understand them in detail before buying the plan.
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