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WHY CAR INSURANCE? 

The car insurance  show all types tips for this tips sharing and  this tips read.Most of public are problem foe choice car insurance and no knowledge for car insurance. Would you like to find yourself behind the bars for the violation of the ‘Rules of Road
Regulations’ ? We believe you surely won’t, and if so, make sure of insuring your car plying on public roads. Law (the Indian Motor Vehicle Act 1988) mandates every car on public roads to be insured. So if you are out on streets driving your car and out of knowledge of the legal importance of the car insurance, you may find yourself in the quagmire of lawsuit or other legal intricacies. So, you are legally bound to purchase the car insurance at the time of purchasing your car.
But you may again find it difficult and perplexing at the point of choosing the right and suitable car insurance offer among multiple offers of a number of car insurance companies albeit the uniformity of the basic ethics and guidlines of all car insurance companies that follow intrincically all those guidelines in line with the Indian Motor Vehicle Act 1988 . If so all gidelines are identical in their nature, how does a car insurance company differ from another? The answer is at their promptness in settling the Claim reimbursement and the way of shouldering all liabilities of Third party relieving you of all pressures aftermath of an accident make different one insurance company from another. So, before you choose the right and suitable one, you have to be fully informed of all the basic rules and regulations and the way of reimbursing and settling claims and other related subjects for choosing an ideal car insurance company.

Policy Renewal:

An outright NO.Insurance companies are barred from floating such facility for their clients due to the Insurance Act 1938. But as it being an era of e-banking and keeping it in mind, many insurance companies come forward for their rescue with credit card payment option facility.Once you avail the facility of making the whole payment for premium through your credit card, you are free to pay the amount to the credit card banker in installment,if any. In short, you are not at all allowed to pay your insurance premium in installment to the insurance companies, though the solution is at your hand.

At a glance

• No Installment facility granted.
• Credit Card payment option granted by some insurance companies

If Discount or Bonus offers available on Premium payment :

An obvious YES. But it’s an entire discretion of the Insurance companies, who offer Discounts taking into consideration of your claim -records. Still anxious to get it detailed ? They are as following for your eligibility ciriteria for availing of these offers.

At a glance

• It is a sole discretion of the insurance company.
• Number of Claim records throughout a policy period credits or debits Discount or Bonus on your premium amount.

No Claim Bonus :

Surprised? Suppose you put up no insurance claim on your car insurance policy despite your car having been damaged, surely of affordable price, Insurance companies will declare an offer of Bonus for you under this clause while you go for paying your next insurance premium . Interestingly, this bonus may go upto 50% on the pretext of the clause ‘Own Damage part’ of the premium.
More explicitly, the insurance companies may provide you bonus upto 20% or 25% or 35% or 45% or even 50% if you haven’t put up claims on your policy respectively for the first year or the second year or the third year or the fourth year or the fifth year respectively. Only applied condition is to keep your policy renewing consecutively and thus getting No Claim Bonus everytime you pay your premium and ,thereby reducing the your insurance premium amount. Here, policyholders are to remember that if policy renewal is not made within 90 days after the expiry of the policy period of 12 months or of a special permitted short policy period, they will be disposed of all No Claim Bonus , certainly if any. Isn’t it lucrative one ?

At a glance

• Accumulation of No Claim Bonus reduces insurance premium amount
• No claim for 1 year – 20% bonus.
• No claim for 2 consecutive year – 25% bonus.
• No claim for 3 consecutive year – 35% bonus.
• No claim for 4 consecutive year – 45% bonus.
• No claim for 5 consecutive year and thereafter – 50% bonus.
• Renewal of existing Policy within 90 days after the expiry of every policy period is mandatory for getting No Claim Bonus.

Membership Bonus :

Yet another great deal awaits you ! If you are a member of an authorized automobile association and using anti-theft electronic device approved by the Automative Research Association of India in your car, then you are eligible for getting a bonus of upto Rs. 500/- only on the submission of valid authenticated papers while you pay your insurance premium. So, you can yourself reduce your car insurace premium amount and the means of reduction is at your hand.

At a glance

• Given to any member of an Authorized automobile association.
• If an automative research association of India authorized anti-theft electronic device fitted in your car.
• Rs. 500/- bonus given on your premium.

Voluntary Excess :

Enthused of previous discounts ? Here again another reward that can be another means for reducing your car insurance premium. Thinking how it is possible. Very simple. This bonus is offered by Insurance companies on insurers’ voluntary deductibles. To be more specific, if you sustain a loss on facing a car accident and bear a part of expenses on your own , you will be exempted from paying the full of your premium amount,of course on par with your voluntary deductibles , and thereby giving you a relief at the time of your premium payment for your favourite vehicles ,which is mandatory if out on streets. Still clarification required, suppose the repairing cost of your car resulting from an unwanted accident adds up Rs. 5000/- and you yourself afford the half of it at the spot, and you claim the another half to your insurance company. But interestingly when you go to pay your next premium , you will be exempted from paying the full premium only on furnishing the valid and authenticated papers to the insurance authority.

At a glance

• Exemption allowed to policyholders sharing a part of repairing expenses after a mishap.
• If an automative research association of India authorized anti-theft electronic device fitted in your car.
• Bonus given at the time of renewal of insurance after the submission of valid documents of your bills.

P.S. :

In addition to these mentioned rewards, policyholders can ask for varied types of other on-spot bonuses , if availabe at that time, once they meet their insurance officials.

IF OWN DAMAGE PREMIUM EFFECTIVE :

Certainly. Own Damage premium is very effective for it will be a safeguard for any damage due to natural calamities like fire, flood, earthquake, landslide, etc. and also made made calamities like theft, arson, etc. So,any damage resulting from natural calamities and man made calamities will be under insurance coverage paying an additional minimum amount with your compulsory premium sum.

If Physically-challenged people considered for Discount or Bonus :

A veritable YES . A discount of 50 per cent can be enjoyed only on condition of ‘Own Damage premium part’ where you have to put up the show of your damaged vehicle repaired and in good condition to the insurance surveyors . Moreover, to add a rejoinder here, the insurance officials are also human beings and their discretion may favour you.

At a glance

• 50% bonus be allowed on condition of Own Damage Premium part.

IF INSURANCE PREMIUM AMOUNT POSSIBLE TO CALCULATE ONLINE :

Obviously possible. You can know the insurance premium amount payable to such company online at home. Remember that the premium calculation is done on a slated and basic rule. There may be some deviations depending on offers and discounts of insurance companies while you attempt to calculate it online from your home. But you will definitely get a first-hand idea of your premium amount using the Calculation Tool-keys available online which will give you a result in respect to Indian currency. It should be kept in mind that the online calculated result may vary from the one company to another. Better to contact them over phone and fix a meeting for an all out details.

At a glance

• Online premium caculation facility available.
• Differ the amount of premium on account of different offers of different companies.
• May not match exactly with the premium you are to pay.

IF YOU CAN MINIMIZE YOUR INSURANCE PREMIUM AMOUNT & HOW :

Yes. You can minimize or reduce your amount of car insurance premium if you achieve bonuses years after years, thereby accumulating them on your insurance profile. If you are far away from being termed as a ‘Risker Driver’ and claiming next to never or almost meagre, you will be even, just believe for God’s sake, paying less than a penny. Successive accumulations of ‘No Bonus Claim’ or approval of ‘Membership Bonus’ or ‘Voluntary Excess’ improves your insurance client profile , thereby minimizing or reducing your insurance premium almost to nil. Sometimes, ‘Refund’ is approved at the time of renewal of your insurance premium.

If Cancellation of existing car insurance possible with Refund :

Sure. You will be allowed only when yours is registered with any other insurance company,and the Refund can be made considering your claim -records during the policy period in effect.A certain amount,none the less, will be deducted from the Refund amount for the period your policy was in effect with the existing company. You can also withdraw from the existing one once your car registration is cancelled by the Regional Transport Office (RTO) on the submission of registration cancellation copies with the original one. But one has to remember that once one is on public roads travelling on his or her car , mandatorily original copy of driving licence and copy of insurance premium with reference insurance nuber are to carried.

At a glance

• Have to have the car insured with any other insurance company.
• Existing bonus of the existing insurance company transferrable to the new one.
• Refund be made deducting a certain amount if asked for so
  in the mid of the policy period.
• Once car regstration cancelled, insurance Refund applicable.

If Online Renewal facility available :

Rest assured . Taking stock of the huge number of internet users , insurance companies facilitate the online renewal facility of the car insurance policies for their policyholders.Online renewal must be made within either two months before the expiry of the policy or six days later after the expiry of the policy.

If Residence address matters Premium amount :

Not at all. But only the address or the city where your car is registered with does reflect on your car insurance premium amount. There are two zone categories having been specified by the Indian Motor Vehicle Act,and this zone categories matter in deciding the premium amount . Categorization of Zone-A cities which include New Delhi, Kolkata, Mumbai, Chhenai, Ahmedabad,Hyderabad,Banglore, and Pune, and of Zone-B cities which are the rest of India , has been done under the Indian Motor Vehicle Act 1988. The categorization rules that the motor -owners of the Zone –A cities are to pay higher insurance premium than those of the Zone -B cities.

At a glance

• Residence address does never influence premium amount.
• Two Zone Categories. Zone-A & Zone-B. Zone-A car users pays higher premium.
• Zone-A cities – Kolkata, New Delhi, Mumbai, Chennai,
  Hyderabad,Ahmedabad,Banglore, and Pune
• Zone-B cities – Rest of India.

If One forgets to Renew one’s Insurance Policy :

Failing of which will affect you in two ways – by turnign you legally an errant driver out on street and by disappointing you on not giving claims of a sort in case you meet an accident and damage the car. Insurance companies will not be liable to giving you any claims if you don’t renew your policy on time, and ‘No Claim Bonus’ facility will cease to exist on the records book of the policyholder if one’s renewal is not made within 90 days of the expiry of the previous policy. Added to these rues ,insurance officials are to inspect the vehicles in person if your policy lapses.

At a glance

• Renewal is mandatory within a policy period, by earnest 90 days after the expiry of the policy period.
• No Claim Bonus loses validity unless renewed within 90 days after the expiry of the policy period.

If Malus is applicable to any policyholder :

Never. Malus is an extra charge on the insurance premium applicable to those customers who are earmarked as riskier ones. If any customer makes claims on his insurance policy after an accident quite frequently which marks him as a riskier driver , he will have to bear this Malu while renewing the policy , and the extra charge will be added to his ‘Own Damage part of premium’. The amount of Malu varies according to the ages or years of the vehicles running on the streets .

At a glance

• Applied as an extra charge to policyholders who frequently submit claims within a policy period.
• They are viewed and marked as Riskier drivers by insurance companies
• The extra charge added to policyholder’s Own Damage part of premium.
• Ages of vehicles a deciding factor for Malus.

If Renewal of Present Insurance be Possible with a New Insurer :

Obviously possible.Only you can afford it. The new insurer will only inspect physically your vehicle. You have to apply afresh with your details of your present ongoing effective car insurance policy,and you are free to shift your bonuses, if available any, to the records of the new insurer. Thus, one can enjoy dual coverage.

At a glance

• A new insurance with the existing one viable.
• Bonus of the existing one transferrable.