What are the types of Car Insurance?
There are two forms of motor insurance : Liability Only policy that covers bodily injury and / or death, property damage to third party and also provides personal accident cover to the occupants. The second being Comprehensive policy that covers loss or damage to the vehicle insured in addition to the Liability Only policy.
What does car insurance include and exclude?
Motor insurance includes a variety of factors that may result in damages to your car and injury to its occupants. The exclusions comprise of normal wear and tear, damages suffered while driving under the influence of intoxicants etc.
What factors affect the total premium of a car?
The premium is determined on the basis of the car value, age of the vehicle, cubic capacity and geographical zone. The insured has an option to select various add-on covers available with the insurance companies.
How is the sum insured calculated?
Sum Insured is fixed at the commencement of each policy period and known as Insured Declared Value (IDV). It is fixed on the basis of the manufacturer's listed selling price, adjusted for depreciation, defined under the Indian Motor Tariff.
What is No Claim Bonus (NCB)?
NCB is a discount given by insurance companies while renewing a motor insurance policy if the owner has not made a claim during the previous policy period(s).