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A car insurance policy is a legal document, so it may not come as a surprise when the language used is quite “foreign” for a layperson. But if you decide to understand your car insurance better, all you have to do is learn the meaning behind the jargon. Also, if you know what the policy offers, you are at an advantage as the chances of disappointment and claim rejection reduce significantly. In this article, we will help you decode your car insurance policy document.
There are two important documents when it comes to your car insurance coverage — car insurance paper and motor policy wordings. The first document, the car insurance paper, has all the information about your car insurance plan. The second one defines the rules and regulations an insurer will follow when it comes to your car insurance policy. Here we will focus on the policy document.
The policy details section is important to show that you are the owner of the policy, i.e. car insurance paper and that you own the insured car.
It contains your personal details like your name and address. It will also have the policy period and car details like registration number, make/model, registration year, registration month, engine cc, seating capacity, and engine number.
Most importantly, this section will have the policy number. It is necessary to submit your car insurance policy number while making a claim.
A car insurance plan can be of different types. However, it is majorly divided into two types — Comprehensive Car Insurance and Third-party Liability Car Insurance. Different insurance companies may name their car insurance plan differently. Here is some basic info on types of car insurance plans.
1. Third-party Liability Car Insurance
As the name suggests, the Third-party Car Insurance plan offers coverage against third-party losses. For example, say you accidentally hit another car and caused a large dent. The other person can raise a claim against your Third-party Liability Policy and get compensation for repairing the dent.
Additionally, it offers coverage against death, disability, property damage, cost of legal help you may need (as per the policy terms), etc. Note that, even if buying this plan fulfils the legal requirement it does not cover your car against any damage.
2. Comprehensive Car Insurance
This plan is more exhaustive in nature. It covers both, third-party liabilities and your car against different types of damages or losses. For example natural calamities, accidents, fire or explosion, man-made calamities, theft of your car, etc. So one must opt for this plan over the basic Third-party Liability Insurance as it offers dual coverage. Plus, you can enhance this type of plan with add-ons.
You will come across this section only if you have a Comprehensive Car Insurance paper or policy. Insured Declared Value or IDV is the approximate current value of your car and you have the option to choose the amount. IDV is also one of the main factors that help in calculating the car insurance premium of a Comprehensive policy.
Here you will find the scope of your car insurance policy. You can understand which events are covered and the ones that are not through inclusions and exclusions.
Insurance companies can specify if any part of your car is not covered under the insurance policy. For example, say the insurance company conducted an inspection on your car before issuing the policy. During the process, they found some minor damages on the car, say a dent on the front door of the right side. Since this part contains previous damage, the insurer may exclude it from the current policy. You will find such exceptions in this section.
Some insurers choose to mention special offers or services on the car insurance policy. You will find the related information in this section.
Your ACKO Car Insurance Policy also has sections similar to the ones explained above. Here is a quick look into reading your ACKO Car Insurance Policy.
The very first thing you see on the insurance paper for car is the name of your car insurance plan. Then comes the car and your personal details. Personal information such as phone numbers and email addresses will be hidden.
Here you will find a list of special services we offer. For example, free pick-up and drop in select cities.
The major coverages of your car insurance policy are mentioned in this section.
Major exclusions like illegal driving, etc. are mentioned in this part of the policy. You cannot raise a claim against situations that are not covered.
Parts of the car that are not covered (if applicable) under your insurance paper for car are mentioned here. You will find images of the damage in this section.
This section contains your car insurance policy number, your address, the policy period, and vehicle details like registration number, engine number, etc.
You will find the IDV of your car in this section in a tabular format if you own a Comprehensive policy.
This table will have the premium breakup of the policy. You can see two sections here, Own Damage Premium and Liability Premium depending upon your policy type. You can see the No Claim Bonus below the table.
Car insurance policy wordings document is usually available at the insurance company’s website. This is a standard document that contains different types of information regarding a car insurance policy. Click here to know more.
Thanks to digital car insurance, you can access your car insurance policy anytime. Unlike traditional offline car insurance where you had to worry about keeping the policy document safe,you can buy car insurance online and also download the policy as many times as required. Find more details about getting a duplicate car insurance copy online
Going through your car insurance policy will help you understand the coverage and exclusions better. People often feel cheated when a claim gets rejected but usually, they are unaware of the policy terms and may have raised a claim against exclusions or an exception. Be informed about what you are paying for while buying a car insurance policy and crosscheck all the information on the policy document.
Following are some questions about the car insurance policy document.
You can log in to your car insurance company’s online account and download the policy. If you are an ACKO customer you will find the policy in your ACKO account as well as in the inbox of your registered email address.
You need to give out your basic personal details, car-related information, and policy number to the insurance company at the time of claim.
You need to check the policy period mentioned on your car insurance policy. An expiry date will be available in the “Policy Details” section of your ACKO car insurance policy.
It is important to keep your policy details updated because checking the policy document is a primary step performed during claim settlement. So, if the policy details have not been updated or are found to be false, your claim request can be declined.
You can update your ACKO car policy details by following these simple steps.
Step 1: Visit our website or mobile application and login to your ACKO account.
Step 2: Select the “Edit Policy” option and make the necessary changes.
Step 3: Save the changes and download your updated policy document.