Financial Adviser

10/01/2023

Car insurance

Car insurance is for every car owner who wants to live without the burden of financial instability. You can get a new car insurance policy online. Gone are the days when insurance agents visited you and filled you with irrelevant and unnecessary information. We will discuss car insurance, so you save time and get the best car insurance policy for yourself.


What is Car Insurance?
Car insurance is a legal contract between the insurer and the insured that makes the insurance company liable to cover any damages to your car in case of an unfortunate event. Third-party Car insurance is mandatory in India under the Motor Vehicles Act, 1988.

A car insurance policy works as a cover for your car and the family. The government of India has made it compulsory for all car owners to have a car insurance policy. T
his is the best solution to ensure the financial liability of an accident or calamity.

Importance of Car Insurance:
Car insurance is a must, and its significance is paramount. Accidents may or may not occur, but having a car insurance policy alleviates the stress of being in an unusual circumstance. Here are some facts that will demonstrate the significance of purchasing car insurance.

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Motor insurance

10/01/2023

What is Third Party Insurance?
There is no doubt that buying a vehicle comes with an undisclosed rule of purchasing a vehicle insurance policy as well. Most of us end up buying it only because it is mandatory under the Motor Vehicles Act 1988 but we need to understand that these insurance policies are for our benefit. In India, there are different kinds of motor insurance policies, and it is important for us to know about each of those policies in depth so that we can choose the right one for ourselves.

One of those policies is the Third Party Insurance Policy which is also known as liability coverage. It meets the minimum legal requirements of motor insurance and provides cover for all your damages if you harm a third party.

Pros and Cons of buying third party Insurance:
Pros of Third Party Insurance: The cost of third party insurance is one of its main advantages. In the case of an accident, where you have caused damage to a third party, you will be on the safer side and save up on some money with the help of a third party insurance policy. Rather than you being held liable for the damages, the entire amount (property damage up to 7.5 Lakh) would be settled by the insurance provider. In case you don’t have third-party insurance, you can be sued, and you would have to shell out the legal expenses from your own pockets.
Since you are meeting the bare minimum legal requirement for insurance, you don’t have to be worried about getting pulled over for lack of an insurance policy.

Unlike other insurance policies, buying or renewing third party insurance policies is not much easier as not every insurer offer this online, but you can search for insurers who offer this online and purchase or renew it online. It not only saves time, but you can purchase at your convenience.

Cons of Third Party Insurance: Just like pros, there are certain cons as well related to third party insurance. One of them is the fact that in the event of an accident, this insurance would not protect you from the damages that occurred to your vehicle. If you are responsible for the accident, then you are responsible for paying for all the repairs as well.
As mentioned earlier, having a third party insurance policy can save you from a lot of legal as well as financial hassles. Third-party insurance policy differs from one company to company, so you would have to compare the rates and benefits offered by the various companies before making your final choice. We hope this list of pros and cons of the third party insurance policy helps you in getting a clearer picture and aids you in making the right choice.

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Motor insurance

10/01/2023

You can file a car insurance claim only if you have a car insurance plan. Accidents can happen at any time and we have to be prepared for them. No matter how carefully you drive your car, you can still have an accident. Hence, you should buy a car insurance plan at the earliest to comply with the law and protect yourself financially in case of emergencies like accidents, thefts, or other road calamities

10/01/2023

Reasons For Car Insurance Claim Rejection
Following are the situations in which your car insurance claims get rejected:

Second-hand car with no insurance
No valid license
Drink and Drive
Delay in filing claim
Unregistered CNG Kit
Consequential damages
Exceeding limitation of use of the car

10/01/2023

Car Accident Claim
Duly filled and signed claim form.
Xerox copy of your car’s RC.
Xerox copy of your Driving License.
Xerox copy of your policy document.
Xerox copy of the FIR.
Original bills, and payment receipt.

10/01/2023

Car Theft Claim
Xerox copy of the registration certificate.
Xerox copy of the driving license.
Xerox copy of the FIR.
Xerox copy of the first two pages of the car insurance policy document.
Original letter addressed to the RTO.



The police will try to find your vehicle. If the vehicle is not found even after 6 months, the police will issue a 'Non-Traceable Report', completing the process of transferring the RC of your lost car to the Car Insurance Company, and a subrogation letter will also be submitted. The claim will be settled after the insurance company gets all the required documents.

10/01/2023

Documents Required For Car Insurance Claim
The following is the list of documents that you need to submit for different types of car insurance claims:

Third Party Car Insurance Claim
Duly filled and signed claim form.
Xerox copy of FIR.
Xerox copy of Driving License.
Xerox copy of the car insurance policy document.
Xerox copy of RC.

10/01/2023

How to File a Cashless Car Insurance Claim?
Below-mentioned are the steps to file a cashless car insurance claim:

Registration
Register your cashless claim on the car insurance company's toll-free number or through its official website, mobile app, or e-mail.

Registration Number
The insurance company will provide you with a claim registration number that can be used for future communications and future claims.

Network garage
Take the damaged car to any of the authorized network garages of the insurance provider for repairs.

Document Submission
Submit all the required documents to the car insurance company.

Claim Settlement
The car insurance company directly settles the bill with the garage.

10/01/2023

How To Claim Car Insurance in Case of Third Party Claim?
Below mentioned is the car insurance claim process for filing a third-party claim:

Do not speak directly to a third party who sent you a legal letter notice for a claim before contacting your car insurance company. Also, talk to your car insurance company before making any financial commitments or settlements out of court.
Submit a xerox copy of the legal notice along with the RC books, driving license, and a copy of FIR to the car insurance company.
The car insurance company verifies the documents and appoints a lawyer for your case.
If the court orders you to pay damages to a third party, the car insurance company will pay the amount directly to the third party on your behalf

10/01/2023

How To Claim Car Insurance in Case of Theft of Your Car?
In the unfortunate event of a car being stolen, below are the steps to file a claim under car insurance:

Inform the Police Authority
You have to file a complaint at your nearest police station or where the incident took place.

Intimate the Insurance Company about the Incident
After informing the police authorities, you have to inform the insurance company about the incident.

Investigation
The car insurance company appoints an investigator who verifies and certifies the facts of the claim.

Submit the Keys
Submit the duplicate keys of the car along with the subrogation letter.

Original RC Document
You need to submit the original RC document to the car insurance company for making a theft claim.

Inform the RTO Authority
To avoid any fraudulent activity from your stolen car, you need to inform the RTO authority about the car theft.

Policyholder Statement
The policyholder needs to give a detailed statement to the car insurance company, including where the car was parked, the time and date on which the car was seen for the last time, stolen data, etc.

Claim disbursement
Once all the formalities are completed, the car insurance company pays the claim.

10/01/2023

How To Claim Car Insurance in Case of Your Car Damage?
If you have damaged your car in an accident, you can file a claim for damages with your car insurance companies:

Inform your car insurance company about the damage to your car immediately.
Inform the police and file an FIR (First Investigation Report) if your car has caused multiple impacts, bodily injuries, and casualties to anyone in the accident.
You can visit the car insurance company's website.The car insurance company takes the car to one such network garage. After the car was taken to the garage, repairs were estimated after the survey began.
A surveyor from an insurance company visits and discusses the estimate with the garage.
Once the surveyor finalizes the estimate and gives his approval, the garage will proceed with repairs accordingly.
The duration of claim settlement is decided by the car insurance company and it varies from company to company.
The policyholder will have to pay some repair cost out of his pocket and it depends on the policy chosen by the policyholder.