In India, auto insurance is mandatory for
all new vehicles, be it commercial or for personal use.
Auto insurance, also commonly known as vehicle insurance or motor
insurance, is an insurance which consumers can purchase for cars,
trucks, and other vehicles. In other words, it is a contract between the
owner of a vehicle and the insurance company. According to the contract,
the vehicle owner agrees to pay the premium and the insurance company
agrees to pay the losses as defined in the policy.
Overview
Features
- The primary use of auto insurance is to provide protection
against losses incurred as a result of traffic accidents.
- The auto insurance provides property, liability and medical
coverage.
- property coverage pays for the damage to or theft of the vehicle.
- Liability coverage pays for the legal responsibility to others
for bodily injury or property damage.
- Medical coverage reimburses the cost of treating injuries,
rehabilitation and sometimes lost wages and funeral expenses.
Auto Insurance Coverage Levels
The basic coverage of auto insurance are cited below:
- The insured party
- The insured vehicle
- Third parties
Auto Insurance Claim Procedure
The following are the process of claiming for the insurance:
- Insured should write the number of the other vehicle in case of
an accident or third party claim
- Names of witness should also be written down
- File an FIR with the nearest police station
- Insured should then contact the insurance company and get a claim
number
- A surveyor is appointed who reports the approximate value of loss
or damage
- Based on the report of the surveyor, insurance companies try to
send the amount to the insured within one to three weeks
- An individual might have to pay the repair charges himself and
later get it reimburse
Documents Required for Auto Insurance Claim
Different documents are required for claiming insurance. Here we
discuss it under three different types of insurance.
For Accident Claims
- Claim form duly signed
- RC copy of the vehicle
- Driving license copy
- FIR on a case-to-case basis
- Original estimate
- Original repair invoice, payment receipt from the service center
For Third Party Claims
- Claim form duly signed
- RC copy of the vehicle
- Driving license copy
- Original policy copy
- Original FIR copy
- RTO transfer papers duly signed, mentioning that the vehicle
cannot be located
Auto Insurance Claim Rejected
The claim for auto insurance is rejected under the following
circumstances:
- If it is a consequential loss; depreciation; wear and tear;
mechanical and electrical breakdown; failure or breakage.
- When the vehicle is used outside the geographical area; when used
contrary to limitation as to use; driven by a person other than the
driver stated in the driver's clause.
- In case of war perils, nuclear perils and drunken driving.
Browse through the following links to know more about Auto
Insurance:
