Insurance seems to be a developing industry in India and still has a long way to go, especially when it comes to raising awareness of its importance and effectiveness. This is especially evident in the area of car insurance where many car owners see it as a legal requirement to pay a large fine. However, car insurance offers more than that. Understandably, no one wants the joy of having a new car diminished in anticipation of future danger or damage. However, insurance is the one that helps prevent this unexpected disaster and therefore deserves its fair share of research and planning before buying.
The first phase of the closure brought all the movement to the point where it had an impact on car sales. Now that the limits are clear and the roads are full of new cars every day, it is time to rethink how you buy your car insurance. In addition, Covid-19 has promoted digital innovation in all industries in an unprecedented way and the insurance industry is similar. Traditional methods of purchasing insurance have now become the most effective means of digital transaction.
There are a few things car owners need to keep in mind in order to benefit fully from their insurance: regulatory principles, additional features and benefits of online shopping among others. Here is a summary of everything you need to know about buying your four-wheel-drive insurance.
Understanding External Company Cover and Your Injury Cover
As much as we would like to avoid it, unfortunately, accidents still happen and there is little we can do to control them. They can be really a disaster for the people involved. In fact, a recent World Bank report states that India sees 4.5 lakh road accidents annually. It even ranks high when it comes to road deaths even though it includes only 1% of the world’s total vehicles. In such a case, low awareness of insurance can be dangerous not only for one, but for both parties. Considering the obvious need for insurance, the law mandated that there should be a cover for a third party liability for all self-driving and commercial vehicles by 2019. In the event of an accident, a third party insurance covers the damage caused by your third party car.
This, however, does not provide any protection for you or your car in the event of an accident. Therefore, it is recommended that all car owners choose a comprehensive insurance policy that covers their injuries. This is especially true if your car is new and frequently used. You must also make it clear that the law requires new car owners to have a one-year three-year three-year third-party insurance policy when they buy a car. However, in the second and third years, the owner is only required to purchase an independent injury policy. Also, accidents are not the only threat to your car’s safety. The ultimate goal is to protect your car not only from accidents but also from other serious incidents, such as theft, burglary, flooding, or fire.
Online Shopping: Comparison, Luxury and More
The world is facing a major digital transformation driven by Covid-19, which has been evident in all industries for a long time now. Purchasing traditional insurance involves setting up tangible meetings with agents and still, choosing from a limited set of options.
Given Covid’s status, public distribution has become relatively new. As we get used to the world of telecommunications, the purchase of insurance has been made easier by a few notes after the advent of the internet option. You can compare the list of policies offered by all existing insurance brokers in your hands and choose the one that works best for you. The process is less tedious and much faster when shopping online. Not only that, you can make your premium more affordable with online insurance compared to offline.
There are many misconceptions about online car insurance. For example, people think that there is a high probability of being rejected online applications. However, this is far from the truth. Fixing claims online is very easy and removes the burden on your shoulder. Even during the renewal period or if you decide to change your insurance company, the online process can be any easy and safe day at these times.
Make the Best of the Claim Bonus (NCB)
Unwanted bonus is a built-in feature of your policy. It rewards you for safe driving and not making a single claim during the policy year by giving you a fixed discount during renewal. By law, a car owner can get up to 20% off the first year without applications, 25% for two years, 35% for three years and 45% for the next four years. If you drive safely, NCB can help lower your premium significantly.
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Here are some quick tips to make the most of your NCB:
Don’t forget to update your policy on time. Do not lose your bonus if you do not renew the policy within 90 days from the expiration date. Pay less damage to your pocket. If you have accumulated a good amount of NCB, you can lose everything by looking for even a small amount. Choose not to include the application bonus cover. This cover comes with an extra premium and protects your bonus even if you make a small claim.
Claim Settlement Ratio (CSR)
This is one of the most important comparison points car owners should consider when making a purchase. This estimate tells you the number of claims paid by the insurance company compared to the total number of claims received per year. Ideally, you should choose a policy with a rate of more than 90% of application fees. A low CSR indicates not only an unresolved insurance claim but also a complex claim payment process.
Cut between the insurance jar and the terms of the policy to get a clear idea of what you actually get in the agreement. In the event of a mistake, the last thing you do