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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: |
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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.(Button for "Click for Short Period
Scale")
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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