Buy car insurance for life and vehicle safety
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Posted On :
Jan-31-2011
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Article Word Count :
443
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There are numerous vehicles all over the Indian roads. Despite of making efforts in improving traffic in the country, several loopholes claim several life everyday. An accident involving car could well drain of your savings. This is where you need to buy car insurance.
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There are numerous vehicles all over the Indian roads. Despite of making efforts in improving traffic in the country, several loopholes claim several life everyday. An accident involving car could well drain of your savings. This is where you need to buy car insurance.
Basically, there are two types of car insurance policies.
Third Party Insurance: This covers the insured's liability to third parties for death and bodily injury caused by an accident involving the insured motor vehicle. This refers to the minimum risk to be covered under the Motor Vehicles Act.
Comprehensive Insurance Policy: This policy covers accidental damage to the insured's vehicle and the loss or damage to the insured vehicle because of accident, theft and other specified perils.
The premium in a motor insurance policy is regulated by the India Motor Tariff regulations. The premium on a car is decided on the cubic capacity, use of car, normal area of operation and the value of car proposed.
As per the revised norms, depreciation is not deducted from the cost of the parts except for the tyres and tubes. On tyres and tubes, a depreciation of 50% is deducted. The car is not insured for reinstatement value or for depreciated value. It is insured for second-hand value in the local market for a similar type of car for a similar model. In the event of loss, the liability of the insurance company is the maximum of the market value or the amount of insurance, whichever is less.
In case of an accident occurring within a year, for which a claim is lodged on the insurance company, the insurance company loads the premium by charging a 'malus'-- a percentage of extra premium in the very next year. Also, there is an option called the voluntary excess. This option lies with the client for bearing a certain amount of loss from every claim. For this option, the insurance company allows a discount in premium.
For the purpose of insurance, motor vehicles are divided into three classes:
Private cars: This category comprises cars, including station wagons, used for social, domestic and business or professional purposes.
Motorcycles: This includes motorcycles with or without sidecars, pedal cycles, mechanically assisted pedal cycles and motor scooters with or without sidecars.
Commercial vehicles: All vehicles excluding private cars, motor cycles and vehicles running on rails come under this category.
The insurers issue a Certificate of Insurance for every vehicle and that is the only evidence acceptable to the police authorities to show that valid insurance exists. This document has to be produced when demanded by an authorised police officer.
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Article Source :
http://www.articleseen.com/Article_Buy car insurance for life and vehicle safety_50775.aspx
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Author Resource :
Alfred Oliver writes content about Car insurance company, Car insurance and Car insurance rate . For more information visit at: http://www.iffcotokio.co.in/
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Keywords :
Car insurance company, Car insurance, Car insurance rate,
Category :
Finance
:
Insurance
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