Car Insurance in India
In India, car insurance is a mandatory for all new vehicles, whether it is for personal or commercial use. And, it is valid for one year. Generally, there are two types of car insurance are available in the market. Motor Policy A-third party insurance and Motor Policy B-comprehensive insurance policy.
Policy A pays compensation for death or bodily injury to third party and damage to the property of third party, up to Rs.6000/-. Under this policy, the optional cover is also provided by paying additional premium.
While Policy B is a comprehensive insurance policy which includes third party cover and loss or damage to the vehicle by an accident, fire, lightning, self ignition, external explosion, burglary, theft, malicious act, riots, strikes, terrorism, earthquake, flood, typhoon, hurricane, storm, tempest, hailstorm, frost, cyclone, inundation, landslide, rockslide, etc. It also covers any loss/damage while in transit by rail, road, rail, elevator, lift, inland waterway, air, etc. On payment of additional premium, the cover is provided for loss or damage to electronic accessories such as music system and LCD, personal accident insurance cover for drivers or unnamed passengers in the car.
Comprehensive insurance policy offers no claim bonus in which the discount is provided on premium for every claim free year. The discount is ranging from 20% and also depends on the insurance claim made during the policy year.
In the current scenario, there are large number of car insurance companies in India which offers various car insurance plans. The leading names in the car insurance sector such as New India Assurance, United India Assurance, Oriental Insurance, ICICI Lombard, Bajaj Allianz, Reliance General Insurance, Iffco-Tokio, etc. Some of companies also have ties-up with direct car manufacturers to make their coverage simple and convenient.
Nowdays, most of companies are offering cashless claim service facility at their network garages across India. Also, provides the facility of purchasing car insurance through online.
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About the Author:
Habibulla Antule is a financial advisor and consultant and have provided his expertise to many financial institutions for loans and insurance
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