VEHICLE / MOTOR INSURANCE - DETERMINANTS | CLAIM PROCEDURE | RELEVANT TOPICS

DETERMINANTS OF MOTOR INSURANCE

Determinants of Risk Premium for Motor / vehicle insurance are as follows:

Cubic capacity of the engine: The vehicle which  runs on diesel, normal high premium will be changed due to its higher IDV (insured declared value) and also the capacity of the engine influences the premium rate.

Age of vehicle: The year of manufacturing of the vehicles is one of the factors to determine the premium amount. If the age of the vehicle is more, then premium amount will be lesser.

Geographical zone: The geographical location where the person lives and buys an insurance policy is one of the factors on premium rates. It the person resides in metros / big cities, normally the premium will be high and vice versa.

Type of model: High end cars available in the market will also be insured at a higher premium because of the cost involved in maintaining and repairing cars in case of any eventuality.

Insured declared value (IDV): IDV is calculated on the basis of the manufacturer’s listed selling price of the vehicle including price of accessories after deducting the depreciation for every year as per the schedule provided by the Indian Motor Tariff. This IDV is one of the factors considered when calculating premium.

Other factors: Other factors like personal factors, types of coverage, security systems installed also influence the premium amount.

CASHLESS SYSTEM AND CLAIM PROCEDURE

Cashless:

The first step: The accident / breakdown should be reported to the company.

Insurance companies provide cashless repairs across a wide network of garages in order to ensure a smooth ride and free pick-up, towing facilities, wash benefits at selected garages.

Loss assessment survey of vehicle within 4 hours by dedicated Relationship Manager provided the company is informed before 2 pm on a working day. This facility is not provided on Sunday and National holidays.

Six month quality assurance on all repairs provided subject to maximum usage of upto 6000 kms post such repairs.

If the vehicle is serviced in a garage outside the network, the same can be reimbursed from the company.

In case of accident:

Note the number of the other vehicles involved in the accident

Note the name and contact details of witnesses if any.

Inform the insurance company

Representatives from the company will inform you about the next step i.e. documents needed for claim and preferred cashless garage.

File an FIR in the nearest police station in case of accident, theft, and major damages.

After the registration of claim, company’s Customer Service Manager (CSM) will contact you within 24 hours. He will verify the document and after the estimation give spot approval for repair and claim.

Documents

In case of accident claim, following documents are required:

-      Claim form duly signed

-      RC copy of the vehicle

-      Copy of driving license

-      FIR Copy/Police Copy

-      Original repair bill

-      Any other document as required to investigate the claim.

In case of theft claim:

Along with the above documents, RTO transfer papers duly signed along with Form 28, 29, 30 and 35 and final report

 

Documents required for Third Party Claims

-      Claim form duly signed

-      FIR copy / Police copy

-      Copy of driving licence

-      RC copy of the vehicle

Further documents may be required according to the claim.

 

RELEVANT TOPICS

Road side assistance – One of the services provided by certain companies is road side assistance(RSA)

Breakdown support over phone

Minor repairs

Flat tyre

Battery jump start

Arrangement of keys

Towing on breakdown / accident

Arrangement of rental vehicle

Arrangement / supply of fuel

Message relay

Arrangement of accommodation

 Garage cash plan: If the vehicle is under repair after an accident, the insurance company will give a fixed daily allowance to the policy holder for the period that the vehicle will be in the authorized garage for repair, or for number of days as mentioned in the schedule, whichever is less. In case of total loss of the vehicle, a lump sum amount as mentioned in the schedule shall be paid.

Long Term Two Wheeler Insurance (LTTW): The IRDA has introduced a long term policy for two wheelers which means, the policy holders do not need to renew the policy annually. Instead of one year, he / she can opt for three years. This insurance taken for three years is called the LTTW Insurance.

No claim bonus (NCB): It is a benefit accrued to an insured for NIL claims during previous policy period. As per the current norms, it ranges from 20% to 50% on the own Damage Premium based on successive claim free years. If a claim is made during the policy period, then NCB is lost in the subsequent policy period. NCB is given to insured (policy holders) and not to the insured vehicle, which means, if vehicle is transferred to other person, then the insurance policy can be transferred to the new owner but NCB cannot be transferred. However, the original car owner can use NB for his / her newly purchased car.