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5 Most Important Sections In Car Insurance Policy Wordings

Wish

Written by Udit Varshney

Updated Oct 15, 2023

This article will help you know about the most important sections to read in your car insurance policy wordings.

Most people neglect to read the contents of their car insurance policy after purchasing it. Reading the policy papers after the purchase of your car insurance will keep you aware of the terms and conditions of your car insurance policy. This will help you understand the process of claiming your car insurance and also the facilities that are provided by the insurance. This article will point out the most important sections in your car insurance policy wordings. 

5 Most Important Sections In Car Insurance Policy Wordings

5 Most Important Sections Of Your Car Insurance Policy Wordings 

Reading the whole policy is important but too much work. The following are the sections that you must not skip -

  • Third-Party Liabilities 

The third party is the compulsory aspect of any car insurance policy. According to the Motor Vehicle, having third party insurance is compulsory to drive your car legally on road. This policy protects you from the financial liabilities posed by the third party in case of an accident provided that you were abiding by the laws at the time of the accident. The details of this policy and the facilities will be listed in the third-party liabilities section of your car insurance policy. Make sure to go through the terms and conditions of the same. 

  • Personal Accident Cover For Policyholder 

The personal accident cover insures the policyholder from the costs incurred to repair any damages caused to the owner-driver’s car or for treating any bodily injuries resulting from the accident. This section contains a table explaining the nature of the injury and the compensation provided for the respective damage. Go through this section to get clarity on the compensation amount. 

  • Comprehensive Coverage 

Comprehensive insurance for cars encloses own damage component which is a very crucial component. Details regarding own damage are specifically mentioned in the car insurance policy wordings. The comprehensive car insurance policies don’t usually cover the costs to repair damage incurred due to an accident. Although, the insurance offers financial assistance for compensating any damage caused other than collision. Reading this policy will make you aware of the situations covered by the policy and help you when you are raising a claim and reduce the probability of rejection. 

  • Miscellaneous Points 

This section provides information about the concepts that are determinants of various aspects of your car insurance policy. You will be reading about the Insured Declared Value (IDV) of your car, No claim bonus (NCB) components, depreciation, deductibles and additional covers (add-ons). Reading about these concepts will keep you informed of the factors that affect your premium and claim settlement amount among various other procedures. 

  • Grievance Redressal 

This section will guide you through the procedure and that you must follow if your insurance claim has been rejected. It also provides reasons why your insurance could have been rejected. It also explains why you would have received a low claim amount and other grievances. It provides the contact details of the insurance provider in case of any doubts. This will help you to address your issues if you have any and also understand the functioning of your insurance company. 

Take Away

Purchasing car insurance is not that simple. The most difficult part is to consider all aspects of a policy and purchase the one that suits your needs the most. Reading the policy papers will help you to be informed of the facilities offered by your insurance company. It will also provide you with an opportunity to cross-check the details as well as the options you chose. Being informed about your insurance policy will help you be aware of the procedure that you need to follow to claim your insurance or even to cancel it. Make sure to read the policy wordings carefully and drive safely.

Also Read:

When to Purchase Comprehensive Car Insurance Coverage? 

Best Car Insurance Add-on Covers And Their Significance

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Wish

Written by Udit Varshney

Udit has built B2C segments across various industries and has had significant contributions to the insurance sector. Read More

Disclaimer

This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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