The steep penalty for people driving a vehicle without the mandatory third-party liability cover has increased the demand for a motor insurance policy. If you are driving without the mandatory third-party liability cover and are caught for the first time, you will have to pay Rs 2,000 as fine and for repeating the offence you will have to chuck out Rs 4,000. For two-wheelers, the premium for the TP policy is lower than the penalty. Long-term third-party liability covers were made mandatory last year by the Supreme Court. IRDAI also directed insurance companies to offer long-term third-party liability covers for new vehicles last year, as most two-wheelers were not renewing their policy after the first year.
Animesh Das, Head of Product Strategy, ACKO General Insurance, says "In case you have missed the deadline of your policy renewal then usually Insurers ask for the inspection of the vehicle. Most of the Insurers end up taking time to get your vehicle inspected and thus it takes time to get your policy. It is suggested to check the turn around time of the inspection from the company, as there are few insurers who get the vehicle inspected in an hour or two and issue you the policy on the same day." For simply renewing the third-party liability policy, policyholders will not have to go through any long process. For instance, there is no inspection and, hence, the policy is issued immediately. However, renewing a lapsed, is slightly more complicated, but that too has now been made simpler with the use of technology by insurers and online aggregators.
Also, note that your policy renewal may get rejected if there are major damages on the vehicle, hence, it is suggested to get the damages fixed and then apply for insurance for a smooth experience.
Generally, the first motor insurance policy is from the car dealer and is bought in a haste. However, while making the first renewal most policyholders analyze the need and then look for a policy.
Hence, consider the following points to get the best policy that suits your needs;
Type of Policy – Decide if you need a comprehensive motor insurance policy or continue with only Third Party liability insurance. Comprehensive motor insurance policy provides cover for both self vehicle damage as well as TP, hence the premium is higher as compared to standalone TP covers but this is not compulsory for you to opt for. TP liability motor insurance policy covers damages caused to the third party in an accident but does not include damage to own property or vehicle, and is a mandatory insurance policy for Indian roads.
Add-Ons – See if you would like to further include additional riders such as Zero Depreciation cover or Hydrostatic Cover. Experts suggest zero depreciation is a must-have for cars especially for high-end vehicles where the depreciation amount would be much higher than the additional premium payable. Hydrostatic Cover, on the other hand, covers the policyholder from consequential loss due to waterlogging.
Cashless Facility – Check with the garage, that is most convenient for you, which insurance company they have tied up with for cashless claims. Cashless Facility at the Affiliated Garage can be saver during emergencies and you will be to get cashless car insurance claims, and you do not have to follow with the insurance company for reimbursement.
Deductibles – The compulsory and voluntary deductibles are the basic minimum amount that needs to be paid by the policyholder for each and every claim. For instance, Rs 1,000-2,000 is generally the minimum guaranteed amount that policyholders need to pay for every claim. Having deductibles in policy reduces the chances for the policyholder of making fake claims or small claims that can be avoided.
Portability – Motor Insurance policies are usually portable and can be shifted from one insurer to another, keeping intact all benefits. Hence, experts suggest when policyholders port their policy to a new insurer, they should check that all benefits have been rightly continued, including NCB, IDV, zero depreciation, etc.