June 16, 2024

Angila Zuhlke

Be Courageous

Common Motor Insurance Questions Answered

10 Most Common Car Insurance Questions | Stewart J. Guss, Attorney At Law

According to Section 146 of the Motor Vehicles Act of 1988, a third-party insurance policy is a legally required policy that protects the owners of vehicles against risks. The third-party insurance policy’s coverage includes paying compensation for harm done to a third party’s property and for passing away brought on by those injuries. This excludes damage to your vehicle.    

  1. Should I Make Small Claims?

 Making modest claims is sometimes a good idea. Get a repair estimate whenever your car is damaged. It makes sense to forego filing a claim and pay for the damage yourself if the No Claim Bonus you stand to lose under your car insurance in the upcoming year exceeds the estimate. For instance, you shouldn’t file a claim if the forecast for an accident involving your vehicle is only Rs. 2000 because that amount is less than the NCB you will have to pay in the corresponding year, which is Rs. 2251 (Rs. 11257- Rs. 9006). *

  1. How Long Is The Term Of My Car Insurance Policy?

After the commencement date, your motor insurance policy’s coverage is still in effect for another 12 months (unless otherwise specified on your policy schedule). 

5. I’m Going To Sell My Car. Can I Transfer My Insurance To The New Owner?

The car or two-wheeler insurance can be transferred to the buyer’s name if you sell your vehicle to someone else. After transferring ownership of the vehicle into his name and paying the endorsement premium for the remainder of the policy’s term, the buyer (transferee) must submit a transfer of insurance application to the insurance company within 14 days.  

  1. What If Someone Else Was Driving My Car At The Time Of The Collision?

The vehicle’s liability follows it. Therefore, even if someone else drives the car with your permission, the bike or car comprehensive insurance on the vehicle will still be in effect. In most cases, if the amount of the loss exceeds the policy’s limits, the driver’s liability insurance may have to pay. 

  1. What Occurs If I Switch Out My Vehicle Or Two-wheeler in The Middle Of The Year?

For the remaining period of the policy, a vehicle insured under a policy may be replaced by another vehicle of the same class, subject to any premium adjustments being made pro rata from the date of the replacement. Notify your motor insurance provider of the change in your vehicle, whether a car or a two-wheeler. Inquire about the impact on your premiums. To update your policy by underwriting guidelines, contact your insurance provider. 

  1. Describe NCB. How Does The NCB Benefit The Owner Of The Vehicle, And Under What Conditions Is It Applicable?

The term “NCB” stands for “No Claim Bonus,” given to the vehicle’s owner, who also holds the policy if no motor insurance claims were made during the prior policy year. It is something that can build up over time. If you have NCB, you are eligible for a concession on the Own Damage Premium (for the policyholder’s vehicle) that can range from 20 to 50%.  *

*Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.