Common Questions Regarding Motor Insurance
Published On Feb 21, 2023 10:00 AM By InsuranceDekho
Common Questions Regarding Motor Insurance
Motor insurance is an important tool that provides protection against any mishaps that happen to your vehicle or to a third party. No matter whether you’re purchasing a new one or already have insurance coverage, there are some common questions that everyone should know about. In this article, we’ll get answers to common questions regarding motor insurance. Continue reading to find out more!
Commonly Asked Questions Regarding Motor Insurance
Here’s a list of frequently asked questions that each policyholder must know about.
- What is the difference between third-party motor insurance and comprehensive motor insurance?
Third-party insurance is required by law and protects against any bodily injury or vehicle damage caused to a third party. However, the policyholder cannot claim their motor insurance policy for their own damages. A comprehensive motor insurance policy is an all-in-one insurance plan that provides coverage for both third-party damage and own damage claims. It also covers damages like theft, fire, burglary, or any natural calamity.
- What is a No Claim Bonus (NCB) in motor insurance?
A no-claim bonus is a reward given by the insurance company to the policyholders for not making any claims throughout the year. It is paid out in the form of discounts on the premium that range from 20% to 50%, depending on the insurer. The policyholders can claim this discount even if the policy has expired. However, only if you renew your insurance policy within 90 days of its expiration date.
- Why are motor insurance claims get rejected?
The following are some of the most common reasons for your motor insurance claim rejection.
- The damage happened due to driving under the influence of alcohol.
- If you claim for the damages that are not covered under your insurance plan.
- If the sum assured of the policy is exhausted for the given period of time.
- In case, you’ve violated any traffic rules such as driving without a driving license.
- What are the benefits of purchasing a multi-year two-wheeler insurance policy?
With a multi-year two-wheeler insurance policy, you won’t have to worry about renewing your insurance plan every year. This means you’ll pay a premium for your chosen period, say four years at once, and the insurance company will keep you covered. Since it is a long-term policy, it lets you make savings on a premium amount and stay protected for a longer time.
- Is it wise to claim my motor insurance policy for minor damages?
Generally, it is suggested not to claim a motor insurance policy for minor damages. This is because if you make any claims during the year, your no-claim bonus will be affected. For example, if you haven't claimed your car insurance policy in two years, you'll be eligible for a 25% discount on your policy. The no-claim bonus discount increases with every claim-free year.
- Why comprehensive insurance policy is better than third-party motor insurance?
A comprehensive car insurance policy provides coverage for both you and a third party under a single insurance policy. You can buy numerous add-ons to expand the coverage of your insurance plan. A comprehensive plan will let you stay protected against any physical or financial damages.
- Can I transfer my third-party insurance if I sell my car?
The policyholders can transfer their third-party car insurance policy to the name of the new vehicle owner. Within 14 days from the date of transfer, a buyer should submit an application and pay an endorsement fee to continue with the process.
- What add-on covers are available under motor insurance?
There are numerous add-ons that you can include in your motor insurance policies by paying an extra premium. Some of the common add-ons available under car insurance are zero depreciation, engine protection, and no claim protection. Similarly, the policyholders can buy personal accident coverage, zero-depreciation coverage, and other add-ons with their standard bike insurance policy.
In addition to the above questionnaire on motor insurance, there are other important details that you should know about. When buying motor insurance, you should read the terms and conditions mentioned in the policy document carefully. This will ensure that you make hassle-free claims with the company and avoid any fraudulent services.