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A Comprehensive
Insurance Policy, which provides reimbursement of expenses incurred on
repairs of accidental damage to the Vehicle due to an accident falling
within the scope of policy in addition to the Act Policy (Motor Policy
A) as depicted hereunder:
What
is covered?
Covers accidental damages
by/ due to:
Fire, explosion, self-ignition or lightening.
Burglary housebreaking or theft
Riot and strike
Earthquake (fire and shock damage)
Flood, Typhoon, Hurricane, Storm, Tempest, Inundation, Cyclone, Hailstorm
etc.,
Accidental external means.
Malicious Act
Terrorist Activity
Whilst in transit by road, rail, inland waterway, lift, elevator or air.
What
are the additional covers possible?
The Following Add Ons are available:
WC (workman Compensation) cover for paid driver on payment of Rs. 15/-
at time of taking the insurance which protects the insured from any legalities
in case of injury or death claim of paid driver by the driver/ his legal
heirs as decided by W.C. Court.
Passenger Death only cover @ Rs. 5/- for a coverage of Rs. 10,000/- (in
multiples thereof, to the maximum coverage of Rs. 2,00,000/- per seat/
person for total seating capacity) against compensation to the passenger/
legal heir in case of permanent total disablement/ death claim.
What
Extension of Geographical Limits are allowed & at what cost?
The Geographical Limits can be extended
to (On
payment of additional Premium):
Bangladesh
Rs. 50/- for Policy "B"
Rs. 10/- for Policy "A"
Nepal, Bhutan and Pakistan: Without
charging any additional premium, but on specific request.
Who
can take the policy?
Owners
and Financiers of the vehicle having insurable interest in it.
What
is the Period of Insurance?
Motor Insurance Policies are issued for a period of 12 months and terminate
at midnight on the date of expiry.
Short Period Policies are also available at the option of insurers for
which higher premium is payable.
When
to pay the Premium?
Motor Insurance Policies terminate at midnight on the expiry date. To
avoid any uncovered moments and enjoy continous cover, it is advisable
to pay the premium on or before the expiry date.
What
does the No Claim Bonus (NCB) Mean?
Is
an Incentive given to reward safe driving. This is given at the time of
renewal by way of discount in Renewal Premium. The Percentage of Bonus
increases if there is no claim in the expiring policy and decreases if
there is a claim.
What
does the Malus Mean?
Is
insurers way of charging higher premium for higher risk (unsafe driving).
this is charged by way of Loading on the Premium of car by a certain percentage
depending upon the claim preferred under the expiring policy.
Discount/Malus
position in
Expiring Policy |
%
Discount/Loading on Premium to be applied at renewal
|
|
|
|
|
If claim
is made in
Expiring Policy Year |
If no claim
is made in
Expiring Policy Year |
| With
65% discount |
Discount
50% |
Discount
65% |
| With
50% discount |
Discount
35% |
Discount
65% |
| With
35% discount |
Discount
20% |
Discount
50% |
| With
20% discount |
No
Malus/No Discount |
Discount
35% |
| No
Malus/No Discount |
10
% loading |
Discount
20% |
| With
10% Loading |
30
% loading |
No
Malus/No Discount |
| With
30% Loading |
50
% loading |
10
% loading |
| With
50% Loading |
50
% loading |
30
% loading |
What
are the Automobile Association Discounts?
The
Insurance Premium is reduced @ 5% of the OWN DAMAGE Premium (Maximum Rs.
100/-) subject to the validity of the Association membership till currency
of the Policy.
What
is the Special Discount?
The Insured is entitled to a special discount of 5% on the total premium
(before Service Tax which is 5%) if the insured company or the financer
of the vehicle is having a paid up capital of more than Rs. 10,00,000/-
What
is the Liability of the insurers with regard to Accidental Claim?
In
addition to the cover available under Policy A the reimbursement of expenses
are limited to the actual amount spent on the repairs of the vehicle,
to get the vehicle repaired [Accidented Portion] (including cost of replacements
if any) subject to 50% depreciation on the cost of Tyre and Tubes.
What
is Additional Compensation ?
The
insurer shall also reimburse Towing charges and spot repairs (actual)
subject to submission of documentary evidence. (Maximum of Rs. 1500/-)
What
is the Liability of the insurer with regard to Theft / Total Loss of the
Vehicle?
In
the event of Theft or Burglary of the Vehicle the liability of the insurer
is restricted to the Market Value of the Vehicle (average price of the
car by make and model) or sum insured whichever is less. Market Price
represents the value the vehicle in question would have fetched in the
market on the date of loss/ theft.
This provision is also applicable to the vehicles damaged in the accident
to the extent beyond repair or beyond ecomonic repairs. As a matter of
practise, Insurers decide/ consider total loss on economic grounds when
accidental repair cost exceeds 50% of Insured's Estimated Value (IEV)
or sum Insured of subject vehicle.
A simple logic to decide this provision is that if the cost of replacement
/ repairs to the damaged vehicle exceeds 50% of the market value of the
car, the claims are settled by the Insurance Company on Total Loss Basis.
What
is the Liability of the insurer with regard to Third Party Injury or Death
Claims?
Third
Party (A person other than Insured and the Insurer) who is injured /dies
due to an accident with the Insured Vehicle, the amount of compensation
adjudged by the Motor Accident Claims Tribunal is made good by the insurers
and is payable to the Legal Heir of the Deceased or the Injured. The amount
of compensation is unlimited/ has no preset limit.
All
costs and expenses incurred by the insured with Insurer's written consent.
What
is liability of the insurers with regard to Third party Property Damage?
The
compensation payable to Third Party for damage to its property (moveable
or fixed) is restricted to Rs. 6000/- {Rupees Six Thousand Only}, irrespective
of the amount adjudged by the Motor Accident Claims Tribunal/Court. This
compensation limit can be increased to Unlimited by paying of an additional
Premium at the time of taking insurance.
All costs and expenses
incurred by Insured with Insurer's written consent.
What
is liability of the insurers towards Employee (Other than payed driver)
of Insured?
Claims
arising out of and in the course of employment of a person in the employment
of the Insured are compensated to the extent of Rs.20,000 when an Employee
(Other than payed driver) is in the driving seat.
What
is Non Idemnifiable /Not Paid?
Consequential
loss, wear and tear, mechanical or electrical breakdowns, failures or
breakages
Damage to Tyres, Tubes unless the Motorcar is damaged at the same time
however the liability of the Insurers for tyres, tubes is limited to 50%
of the cost of replacement.
Any accidental loss or damage suffered whilst the Insured or any person
driving with the knowledge and consent of the Insured is under the influence
of intoxicating liquor or drugs.
When the vehicle is used outside the Geographical Limits stated in the
Policy, contrary to the limitation to use.
What
are the other options of insurance available?
policy restricted to cover ACT (policy a)and theft risk only.
the policy is restricted to Third Party Insurance and Total Loss of Vehicle
due to Burglary, Theft, Housebreaking including accident following theft.
policy restricted to cover ACT, fire and theft risk only.
this policy is restricted to Third Party Insurance and total damages due
to Fire i.e. Self-ignition etc or Total Loss of Vehicle due to Burglary,
Theft, or Housebreaking. including accident following theft
What
are the options/ways to reduce the premium?
the risk can be deleted from the Comprehensive
Cover and the following discounts; can be availed (although deletions
are not advisable as they defeat the very purpose of comprehensive cover):
Deletion
of Riot and Strike Damage Saving (0.15% of the Value
of the Vehicle)
A Word of Caution
The exclusion of this risk to save the premium shall not be treated as
Comprehensive Insurance in its true sense. The expenses due to loss
/ Accident attributed to Riot and Strike, Malicious Damage and Terrorist
Activities shall not be payable. To illustrate the effect of deletion:
For Example:
1.) The vehicle is moving on the road in the terrorist inflicted area
viz. J&K, Punjab, Assam and its sister states, Darjeeling, Madhya
Pradesh, etc and some terrorist hurls a bomb resulting in the damages
to the vehicle, the loss shall not payable.
2.) If due to an accident, the mob puts on fire the vehicles, not covered
for Riot and Strike, the loss is not payable.
3.) Some miscreant, with a sole aim to put the Insured in loss, damages
the vehicle, the loss is not payable.
There may be many more situations,
where these losses are not payable. A case - by case variance may take
place. Therefore, rethinking is must before deletion.
Deletion
of Earthquake Savings (0.10% of the Value of the vehicle)
A Word of Caution
The damage to vehicle directly attributed to Earthquake, for example had
the car been damaged as a result of Earthquake viz LATUR, UTTARKASHI,
EARTHQUAKES, The claim in respect of those damages (Total or Partial)
were not payable.
Deletion
of Flood Savings
(0.15% of the Value of the Vehicle)
A Word of Caution
Flood means the natural calamities and includes, Storm, Tempest, Hurricane,
Tornado, Landslide etc., if this cover is deleted from the policy the
loss directly attributable to these risks is not payable.
For example:
1.) During a storm, the vehicle was parked under a Tree; a branch of the
tree fell on the car and damaged it, the expenses incurred for repairing
the vehicle is not payable.
2.) If during the Cyclone, the vehicle is washed away the claim is not
payable.
The Premium can further be reduced by opting an Excess in own damage portion
(Insured will be bearing the first specified amount of claim) and avail
the reduction in the premium.
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