Considering a large number of fatalities on Indian roads, road safety has become an important issue for the government. Having valid car insurance is an integral part of road safety. It ensures the security of people who are not actively involved with the vehicle. The Motor Vehicle (Amendment) Bill, 2019, which was recently passed by both the houses of parliament has proposed a ten-fold increase in the insurance compensation for a third-party casualty. The bill has also proposed to simplify the insurance claims process.
Source: India TV
Types of car insurance
The new bill has just hiked the compensation amount for the innocent victims of an accident. But having third party liability insurance has been mandatory in the country for a long time. There are two major types of car insurance – third party and comprehensive. Third party insurance covers the legal or medical compensation provided to a third-party, in other words, the victim of an accident involving the policyholder’s car. If you are involved in an accident, it will not cover the damage to your vehicle or any kind of injuries that you might sustain.
A comprehensive coverage, on the other hand, provides compensation for a host of incidents, in addition to third-party coverage. It provides coverage for personal accident, injury or any damage due to an accident. It also covers damage due to natural and man-made calamities. Having comprehensive insurance is not compulsory by law but getting one would be a practical step. Driving even a day without valid car insurance is illegal.
Inspection of car
When purchasing a new car, buying a car insurance policy is nearly unavoidable. However, many people forget or avoid insurance renewal for their car. An insurer will inspect your car when you buy a new vehicle or go for a car insurance renewal. Inspection is an integral part of the insurance business. It is similar to undergoing medical tests before a health insurance policy is approved. Another aspect that confuses many buyers is the process of inspection when buying an online car policy. Most insurers will get the car inspected in some way before approving a new policy or renewing an old policy.
In case of a car insurance renewal, the process of the inspection varies from insurer to insurer and the time lapsed after the expiry date. Some insurers will not bother to inspect the vehicle if the policy is about to be renewed within a week after the expiry of the previous policy. Some companies give a waiver for a month. However, if 90 days have elapsed between the last policy and the renewal date, an inspection becomes mandatory.
Process of inspection
Vehicle dealers generally get the car insured before delivering a car, which essentially eliminates the need for inspection when buying a new policy. Inspection plays an important role during car insurance renewal or buying car insurance online. If a significant time has elapsed after the expiry of the old policy then the process of renewal is like getting a new insurance policy.
Source: Finance News Blog
Through Finserv MARKETS, you can renew your insurance online or buy Bajaj Allianz car insurance in a few simple steps. If you renew car insurance before it lapses you will not have to go through an inspection process. Some customers may also get a grace period when getting car insurance renewed through Finserv Market. However, if you fail to renew and the policy lapses, you will have to go through the entire process again. In case you buy car insurance online through the portal, your car will be inspected by an official from the insurer after you decide your coverage and provide the details of the vehicle.
If you decide to renew car insurance online through the portal and a long time has elapsed after the expiration of the last policy, your vehicle’s assessment will be conducted by the insurer. The drawback of letting a car policy lapse is that the insurer may increase the premium on the existing policy. Considering the chances of paying more after an inspection, it is always advisable to renew car insurance online.
The increase in online car insurance policies has simplified the process of buying and renewing insurance. When you apply for an insurance policy online, the insurer sets up and ensures the inspection of the vehicle. Not just while buying a new policy, a car inspection is also required when a policyholder changes from third-party insurance to comprehensive insurance or an existing policy lapses without renewal. You can change policy for various reasons but it does not make sense not to renew a policy on time when you can easily renew car insurance online.
Also, know how is car insurance premium calculated before you purchase a policy.
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