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Saturday, September 19, 2020

Documentation and Process for Car Insurance

Getting car insurance is necessary to protect you and anyone who rides in your car. Car insurance plans offer Coverage for unavoidable circumstances such as theft, accidents, loss and other damages to your car. In India, it is mandatory to get car insurance for your vehicle. But before choosing a car insurance plan, make sure you understand the procedure for getting motor insurance and the necessary documents required for it.

Procedure for Car Insurance

Before getting the motor insurance, you need to decide on which type of motor insurance you want. Third party car insurance covers your car for minimal damage as is mandatory under Motor Vehicles Act 1988. On the other hand, a comprehensive car insurance plan will include more benefits such as third party cover, loss from natural calamities, loss/damage to accessories etc.

The premiums payable on your motor insurance will be calculated based on factors such as age of the car, engine power, seating capacity and Insured Declared Value or IDV.

IDV or Insured Declared Value has a strong bearing on the overall cost of your car insurance. This is the current market price of your car at any given time. For the insured, this is the amount they will get in case the car gets stolen or suffers total loss.

Once you get the motor insurance done, you receive a certificate of insurance. This is a physical proof of the motor insurance. Every car insurance plan is valid for a period of one year from the time the first Premium is paid.

You can get your can insurance plan from an insurance company or the car dealer himself

You have to renew your car insurance plan within the Policy period. Driving your vehicle without motor insurance is a legal offence. At renewal, the Insurer will calculate IDV for your vehicle again and the new car insurance plan will be based on this new Insured Declared Value.

Procedure for Motor Insurance Claims

In case of a claim, you will have to submit the following document to your car insurance company:

  • Copy of the Registration Certificate.
  • Driving License copy of the person driving at the time
  • FIR copy.
  • Original estimate of repairs.
  • Policy copy.
  • Signed Claim form.

Once these documents are submitted, the motor insurance provider will appoint a surveyor to check the damages and verify the authenticity of claims made. Next, you will have to submit copies of the bills for damage repairs. The final estimate is checked by the car insurance company and the surveyor makes another verification of the car. Once all is cleared, you should receive a settlement for the claim, under your car insurance plan.

In case of theft, you should receive the entire amount of IDV or Insured Declared Value at settlement. If your car is stolen, report it to the nearest police station immediately. You should also inform the concerned authorities about missing documents such as RC and get copies. The motor insurance company will settle the claim after giving the police enough time to verify and recover the vehicle if possible.

It is important to find a car insurance plan which is appropriate for your needs. For example, if you have additional accessories fitted to your car, get a car insurance plan which offers appropriate cover for these. Motor insurance is mandatory for any vehicle plying on the roads. So make sure you get a car insurance plan with comprehensive benefits and affordable premiums.

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