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1. What Motor Insurance cover should I buy? Should I buy Comprehensive Insurance or Liability Policy only?
A- Third Party Liability insurance is mandatory for all vehicles in India. This covers Liability for injuries and damages to others that you are responsible for. In addition, it is prudent to cover loss or damages to the vehicle itself by way of Comprehensive / Package policy, which covers both “Liability” as well as “Own damage” to the insured vehicle.
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2. What is IDV? How is it calculated? Why is IDV important?
A- Insured Declared Value (IDV): Insured Declared Value is the maximum Sum Assured fixed by the insurer which is provided on theft or total loss of vehicle. Basically, IDV is the current market value of the vehicle. If the vehicle suffers total loss, IDV is the compensation that the insurer will provide to the policyholder. IDV is calculated as manufacturer’s listed selling price minus depreciation. The registration and insurance cost are excluded from IDV. The IDV of the accessories which are not factory fitted, are calculated separately at extra cost if insurance is required for them. IDV= (Ex-showroom price - depreciation) + (Accessories that are not included in listed selling price-depreciation). IDV is important because in case your vehicle is stolen or suffers total loss, you will get that amount from insurer. It is highly recommended to get IDV which is near the cost of market value of car. Insurers provide with range of 5% to 10% to decrease IDV which could be chosen by customer. A lower IDV may help reduce your premium, but can lead to significant loss in case of a claim.
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3. What are the documents to be kept in the vehicle while driving?
A- Certificate of Insurance; Xerox copy of Registration Certificate; Pollution Under Control (PUC) Certificate; Driving Licence of person who is driving the vehicle
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4. Can I transfer my insurance to the purchaser of my vehicle?
A- Insurance can be transferred to the buyer of the vehicle, provided the seller informs in writing of such transfer to the insurance company. There is a nominal fee charged for transfer of insurance along with pro-rata recovery of NCB from the date of transfer till policy expiry. Transfer of ownership in comprehensive/package policies has to be recorded within 14 days from date of transfer failing which no claim will be payable for own damage to the vehicle.
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5.What documents are required to be submitted for a Motor Insurance claim?
A- Usually, duly filled in Claim Form, RC copy of the vehicle, Original estimate of loss, Original repair invoice and payment receipt. In case cashless facility is availed, only repair invoice would need to be submitted and FIR, if required. For theft claims, the keys are