What to Check in a Motor Insurance Policy?

A motor insurance policy provides financial protection to your vehicle against a wide range of risks. It isn't something that you should buy in a hurry. Also, you should put in the same effort in purchasing a motor insurance policy as you would in purchasing a vehicle. And, while you're at it, there are a couple of things you must keep in mind so that there are no issues later, at the time of a claim.

In this article, let's take a look at are some things you should check before and after purchasing a motor insurance policy for your vehicle.

Let’s dive right in!
 

Things to Check Before Purchasing a Motor Insurance Policy

Here’s a list of things you must check before you buy the motor insurance policy -

• Understand The Requirement

  Before you start looking for an insurance plan for your vehicle, it is important to assess your requirements. Decide on the type of motor insurance cover you want to purchase, and whether or not you want to opt for any additional features and add-ons. Once you understand your needs, you can go ahead.

• Third Party or Comprehensive?

  Once your requirements are clear, you can choose between a Third party policy and a Comprehensive policy. If you do not drive a lot, are confident you won't damage your car, and want to optimise the insurance premiums, then a Third party policy may be a good choice. In all other cases, you should ideally go for a comprehensive policy.

• Coverage

  The Insured Declared Value (IDV) is the estimated market value of your vehicle. It is the maximum amount the insurance company will pay in case a claim arises under the motor insurance policy . So, make sure you select a policy that provides an adequate IDV.

  Choosing a lower IDV can lessen the premiums you will need to pay, but this can prove to be troublesome during the claim settlement process as there might be situations wherein the loss or damage goes beyond the chosen IDV, for instance, if your vehicle is stolen.

• Customisation

  You can select several features and benefits with your base motor insurance policy so that it is perfectly tailored according to your needs. You can also opt for a variety of add-ons, like NCB Protector Cover,Zero Depreciation Cover, Roadside Assistance Cover , Personal Accident Cover, etc. These add-ons will provide extra protection to your vehicle.

  For example, Atul bought a car in 2020. He holds a comprehensive policy with an IDV of Rs 7 lakhs. He got into an accident in 2022, which damaged his car’s headlights and bumper. He does not own a Zero Depreciation Cover, and therefore, will be required to pay a certain amount from his own pocket as depreciation even if the repair cost fits in his policy’s coverage. If he had added a Zero Depreciation Cover to his policy, he wouldn’t have been required to do so.

• Network Garages

  There are two ways you can make a claim under motor insurance - either on a cashless or a reimbursement basis. The cashless claim facility will only be available at the insurer's network garages, i.e., the garages listed with the insurer. So, when you're buying a motor insurance policy, check the network garages listed with the insurance company. Ensure you buy a policy in which at least a few preferred network garages located near your house and workplace are covered.

• Understand The T&C

  To avoid any difficulties at the time of claim settlement, it is extremely crucial that you go through the policy documents and brochures and understand the terms and conditions of the policy you’re planning to buy. Educate yourself about the inclusions, i.e., situations the motor insurance policy will cover, and the exclusions, i.e., situations it won’t cover.

• Personal Accident Cover

  As per government norms, it is mandatory to have a personal accident (PA) cover for the owner-driver. Make sure you add it to the policy if you don’t have one already. Not having a PA cover for the owner-driver may lead to a rejection of claims as well.
   

Things to Check After Purchasing a Motor Insurance Policy

Here’s a list of things you must check as soon as you receive the policy copy from the insurance company -

• Personal Details

  You should check if all your personal details mentioned in the policy are correct, like -

  Name : Check if the name is printed correctly in the policy and is as per the RC copy.

  Contact details : Check if the mobile number, email address,and communication address are mentioned correctly.

• Vehicle Details

You should also cross-verify your vehicle-related details,like -

1. Make and model
2. Cubic capacity
3. Registration number
4. Engine number
5. Chassis number
6. Fuel type

• Policy Tenure

  Next and one of the most important things you should check is whether the start and expiry date are correctly mentioned on the policy copy.

• Insured Declared Value

  The IDV shown on the policy should be the same as the one decided prior to purchasing the policy. If they aren't the same, contact your insurance company and get it altered.

• Add-Ons

  Add-ons provide additional protection to the insured vehicle. If you’ve opted for add-ons with your base motor insurance plan, check if the details related to all the add-ons you’ve purchased are mentioned properly in the policy copy.

• Nominee Details

  If you’ve opted for a Personal Accident Cover for the owner-driver of the vehicle, you’ll have to mention the details of the nominee while buying the cover. Once the policy is issued, ensure you check if the details of the nominee are mentioned correctly - to avoid any hassles in case a claim arises in the future.

• Previous Insurer Details

  In case you've shifted your motor insurance policy> to another insurance company, you must check if the details about the previous insurance company are mentioned correctly in the policy.

• No Claim Bonus Discount %

  The No Claim Bonus(NCB) is a discount you get on your policy’s own damage premium amount if you don’t make a claim in a year. Every time you renew your motor insurance policy, make sure you check if the No Claim Bonus discount percentage is mentioned correctly in the policy document or not. In case of any inaccuracies, get them rectified by the insurer as soon as possible.

This brings us to the end of this article. Make sure you keep in mind all the things we’ve mentioned above - if you don’t want to go through any difficulties before or after buying a motor insurance policy.