Month: September 2018

Modification and your car insurance policy
‘The only thing that is constant is change’, wrote Heraclitus, a Greek philosopher. He was right. That is why many of you make changes to your home, your wardrobe, your lifestyle, etc. In fact, many car owners also make changes in their cars. They fit various accessories or modify their cars as per their requirements. Major modifications to the car are done for the following reasons –
1.  To change the look of the car – This is done more with a view to make the car look more trendy and stylish thereby reflecting the fashion sense of the owner
2.  To make the car suitable for a disabled user – If the intended passenger of the car is disabled, modifications might be made to enable easy mobility of the disabled individual
3.  For suiting the driving terrain – if the car is primarily driven off-roads, changes can be made to the car’s tyres for suiting the driving terrain
4.  For improving the performance of the car – this is relevant when speed boosters or other performance oriented modifications are done to the car
5.   For changing the fuel type – in many cars, CNG kit or bi-fuel tanks are installed for fuel efficiency. This is also a type of modification
Modification and insurance
If the car is modified, it might change the value of the car. If the value of the car changes the premium would be affected. Therefore, in many cases of modification, the car insurance policy should also be modified. The policy should include details of the modification done, the increased value of the car and the subsequent increase in premium. So, if you are modifying your car in any way, you should consider modifying your car insurance policy as well. The following things should, therefore, be done in such cases –
• Inform your insurance company about the modification being done or already done on the car
• Submit all the relevant bills, documents and other paperwork which show the details of the modification and its cost
• The insurance company would, then, analyse whether the said modification has increased the Insured Declared Value (IDV) of the car or not.
• If the IDV is supposed to be increased, the company would increase the IDV and fix the new increased premium.
• You would, then, have to pay the additional auto insurance premium based on the increased IDV.
If you do not inform the insurance company of the modification, your car insurance policy does not reflect the said modification of your car. In case of any claim when the car is damaged and is sent for repairs, any damages sustained by the modified parts of the car would not be covered. The insurance company would, therefore, not pay for any damages incurred on any modifications. Moreover, if the insurance company does not record the said modification, you might land up in legal trouble in case you face any legal liability.
Now you know how modifications in car can affect insurance policy. So, do whatever modifications you want on your car but remember to get the same updated in your car insurance policy. You might be required to pay an additional premium but your modified car would be completely covered against any unforeseen contingencies.

Read more to find the factors affecting premium of your car insurance policy

Read more about types of car insurance covers and their benefits.

Having a car insurance policy is mandatory and so many of you feel that the policy is an unnecessary expense. But when there is an accident and you face damages, you realise the importance of a car insurance plan. It is because, such damages result in a car insurance claim where the insurance company pays for the financial loss. Making a car insurance claim is simple. It involves some simple steps and the insurer pays for the losses incurred. However, many of you are clueless when it comes to car insurance claims. You don’t know when does a claim occur and how to claim car insurance. So, here’s a complete guide to car insurance claims for your understanding.

When does a claim occur?

A claim is said to occur when –

• You cause bodily injury to any third party
• A third party dies due to an accident involving your car
• You damage any third party property
• Your car suffers damages and needs repairs
• Your car is stolen
• Your car is damaged beyond repairs

In any one or more of the above-mentioned incidents, your car insurance policy becomes eligible to pay for the financial costs faced.

Making a claim

Here is a step-by-step car insurance claim process of your car insurance policy for the above-mentioned contingencies –

If your car suffers any damage

1. Inform the insurance company.

This is the first step which you should take in the event of a claim. If the insurance company is not informed of the contingency and you take any action yourself, making a claim later on would not be entertained by the company. So, as soon as you face any mishap, call the company’s 24*7 helpline number and register your claim.

2. Provide the details of the accident

Upon being intimated, the insurance company would want to know the details of the incident. Describe the details completely for the company to understand the nature of your claim. The company would also require the insurance policy number, license number of the individual driving the car and the vehicle registration number. You should keep these details handy when informing the insurance company of a claim.

3. Avail the claim reference number and take the car to the nearest garage.

After you describe the incident, the company would provide you with a claim reference number. This number should be noted and used in future claim follow-ups. The location of the nearest preferred garage would also be provided to you by the company. You should take the car to the nearest garage. In case of severe damages when the car cannot be moved, the company might also arrange for towing facilities to take your car to the nearest garage.

4. Wait for the surveyor

Once the car reaches the garage, the insurance company arranges for a surveyor visit. The surveyor comes, assesses the damages of the car, prepares a claim estimate and submits it with the insurance company. Only after the surveyor’s report is submitted and approved by the company, would your claim be approved.

5. Fill the claim form

You would have to take care of some paperwork to get your claim approved. The insurance claim form should be filled in and submitted with the insurance company. Important documents like the RC Book of the car, your driving license and copy of the policy document would have to be submitted with the claim form.

6. Repairs Begin

Once the insurer approves the claim based on the surveyor’s report and your documents, repairs on your car begin. Once the repairs are completed, the bill is sent to the insurance company. The insurance company settles the bills directly with the garage.

7. Pay the remaining claim and take delivery of the car

Some elements of the claim might be payable by you. For instance, there is a compulsory excess which has to be borne by you. Similarly, the depreciation on the replaced parts would be your out-of-pocket expenses. Pay the remaining claim which is not payable by the insurance company to settle the garage dues. Once the dues are settled, you can take delivery of your car.

For third party liability claims for car-owner

If any third party or property is harmed, the incident would be reported to the Motor Accidents Claim Tribunal (MACT). You would have to inform the insurance company and file a FIR with the police. The FIR is an important requirement in case of third party claims. If your car has also suffered any damages, you would have to follow the above-mentioned process. For third party damages, the insurance company would pay the claim based on the rulings of the tribunal.

Claim for stolen car

If the car is stolen, you should inform the company and file a FIR with the police. You would then have to fill and submit the claim form along with copies of the RC Book, driving license, intimation sent to RTO about the loss, policy document and the FIR. If the car is not located within three months of theft, the police issue a ‘Non-Traceable Report’. You present this certificate to the insurer. You should also transfer the RC book of the car in the insurer’s name and issue a letter of subrogation giving up all ownership rights to the car. After receiving and analysing the documents, the insurer would settle the claim. In most of theft cases, the insurance company demands you to submit both the original and duplicate car keys to eliminate the possibility of theft due to your negligence of leaving the key in the car.

Read more about how video uploads are making claims faster.

Also have a look at the video below to understand how to register for car insurance claims

Types of claims

Claims under your car insurance policy can be settled directly by the insurer or through reimbursement. Let’s understand –

• Cashless claims – when the insurer directly settles the claim, it is called cashless claim. This is possible only if you get your vehicle repaired at a garage which is tied-up with the insurance company.
• Reimbursement – if you take your vehicle to any other garage which is not tied-up with the insurer, your claim would be settled through reimbursement. You would have to get the car repaired at your expense. Then, you have to submit the repair bills to the insurance company. The company assesses the bills and reimburses you for the expenses you incurred.

So, this was the entire guide to making a successful car insurance claim. You should follow the process for easy claim settlements. Moreover, look out for exclusions. If you make a claim for an excluded cost, the claim would be rejected. So, understand the coverage of your policy before you make a claim.

Read more about most common exclusions in car insurance policy.

Read more about car insurance terminologies you should know.

Read more about types of car insurance covers and their benefits.

Used cars are steadily gaining momentum in today’s automobile industry. The reason is simple – individuals get to enjoy the comfort of a car without burning a hole in their pockets. For learners, used cars are better as they can practice their driving skills before investing in a good model. Thus, the used car market is becoming popular. Based on a study conducted by Techsci Research, here’s how the used car market has grown and is expected to grow in the coming years –

(Source: https://www.techsciresearch.com/report/india-used-car-market-by-vehicle-type-small-mid-size-luxury-by-sector-organized-vs-semi-organized-unorganized-by-sales-channel-dealership-broker-vs-c2c-by-fuel-type-petrol-others-competition-forecast-opportunities/1239.html )

Though used cars are a good way to own a car at a small budget, you should be careful when buying them. The following are five tips for buying a used car in India –

5 things to check when buying a used car

1. The car’s condition and the asking price

The first thing which you should check is the condition of the car. If the seller is selling his old car, chances are that the car is not in a very good working condition. So, check the mileage, engine capacity and performance of the car. Moreover, the price of the car should also be checked. You should make sure that the car’s price is proportionate to the car’s age and condition. You can choose verified and trusted dealers of used cars who offer verified cars at verified prices.

2. The car’s papers

Buying a used car involves change in ownership of the car from the seller to you. In such cases, the change in ownership should reflect in all documents associated with the car. So check whether the car has all the relevant and necessary paperwork. Some important documents which you should ensure include the RC book of the car, insurance certificate, PUC certificate, road tax certificate, original invoice, etc.

3. Transferring of RC Book

The Registration Certificate (RC) of the car is an important requirement for you to have. It lists the manufacturing year, registration year and other details of the car. The car should have its RC book which should then be transferred in your name when you buy the car. Ensure that the car’s RC book is available and that it is transferred in your name so that you become the legal owner of the car.

4. Transferring the insurance policy

The car you are buying must have a car insurance cover on it as it is mandated by the Motor Vehicles Act, 1988. Originally, the insurance policy is in the name of the seller of the car. When you buy the car, the policy would be transferred in your name. The seller has to get the policy transferred. When the policy is transferred, a new Insurance Certificate would be issued containing your name as the policyholder. However, the No Claim Bonus in the existing policy would stay with the old owner. If you had an existing car insurance policy, you can transfer its NCB to the used car policy.

Read more about role of insurance in trading a used car.

5. Fixing the car before using it

The used car might have glitches which need fixing before you are able to drive the car. Ideally, the car should be in perfect working order when you buy it. If it isn’t, ask the seller to fix the car before you buy it. You can also fix the car yourself as per your requirements.

So, if you are considering buying a used car, remember these points as your used car buying guide. They would not only help you in buying the car smoothly, they would also ensure that you don’t face unpleasant surprises when you start using the car. A little awareness is never dangerous, is it?

Read more about anatomy of car insurance plan.

Read more about types of car insurance and it’s benefits

Check out our video to understand things to keep in your mind before buying a second hand car