If you own a car, you surely know how important insuring it could be. And if you’ve experienced some kind of damage to your vehicle in the past, you also know how crucial it is to be careful about what your motor insurance covers.
The most common trend of buying motor insurance in India is to buy any policy in order to abide by the law. There are very few motor customers, who give a careful glance to their policy features, terms and conditions before actually buying it. At the time of renewal also, a majority of customers imply renew their old policy without any additions and exclusions of the features and are hit hard at the time of claims. However, this may not be the ideal way of buying or renewing a motor insurance policy. There are certain parameters if well thought, will not only help you in saving premium but will also make your claim experience much smoother.
Add On Covers: Each time when you renew your motor insurance policy, it is wise to check with your insurer on add-on covers that may be beneficial for you. For instance, if you are staying in a flood prone area, engine protector must be there in your policy features. Zero Depreciation or Depreciation Shield is another add on cover that you may want to purchase. Under this add-on, insurer pays the cost of the vehicle part at market price and without considering the depreciation at the time of claim.
Voluntary Deduction: If you haven’t opted for voluntary deduction in your previous motor insurance policy, you can opt for this feature at the time of policy renewal. With this feature, you commit to bear a certain claim amount from your own pocket at the time of claim. Claims above this set limit will be paid by the insurer. By choosing voluntary deduction, you can bring your premium amount down.
Know Exclusions: As a customer it is your right and duty to understand the features and exclusions that are part of your motor insurance policy. The best time to evaluate your policy is at the time of renewal and not at the time of claim. So enquire well about your policy coverage and exclusions before the renewal. If you want any specific endorsement for the next policy period, you can request for its addition by paying additional premium. Certain exclusions in your policy can be a part of other product by your insurance company, get the relevant details and see if that suits you more.
Technology Advancement: With the technology advancements, insurers in the country now have introduced applications to register and settle motor claims on your smartphone. These applications are quick and with the help of photos and videos can settle cash claims as quickly as 20 minutes for up to a certain amount. Check if your insurer offers the facility, this will save lot of your time at the time of claim settlement.
No Claim Bonus (NCB): NCB or No Claim Bonus is a reward by the insurer for a claim free year and consecutive 4-5 claim free years can get you up to 50% discount in your premium. If you did not file for a claim in the year gone by, you must take a count of that at the time of policy renewal. Even if you plan to change your insurer for the next policy period, your NCB benefits can be transferred, all you need is to get a certificate from your existing insurer.
Renew before it lapses: Last but not the least, the most crucial element of your motor insurance policy renewal is that you get it renewed before the policy expires. Once the policy expiry period crosses 90 days, you will not be entitled for your NCB. It is ideal to renew your insurance policy 45 days before the current policy expires.
With this checklist on your mind, you are good to go with your Motor Insurance Policy Renewal and will actually know what you have paid for.
