Key Components in Your Comprehensive Car Insurance Policy Wording

Written by Udit Varshney

Updated On Oct 15, 20232 min read

Before purchasing a car insurance plan, everyone should conduct extensive research so that they can make an informed decision based on the insurance policy wordings.

Key Components in Your Comprehensive Car Insurance Policy Wording

Every car insurance policy document contains specific terms and conditions, which if not followed would cause the claim request being rejected in the end. As a result, before purchasing a car insurance plan, everyone should conduct extensive research so that they can make an informed decision based on the insurance policy wordings.

It will assist you in purchasing a car insurance policy that meets your needs. With this approach, you can easily file a claim in the event of an accident or mishap, according to the terms and conditions that the car insurance company will honour.

Key Components in Your Comprehensive Car Insurance Policy Wording

Here are a few key components in your comprehensive car insurance policy wording:

Third-Party Liabilities
Third-party car insurance is a requirement of the Indian Motor Tariff, meaning all vehicle owners must have it. This policy is intended to protect you from any financial obligations you may have to a third party due to their accidents, deaths, or property damage. In your policy document, review the third-party liability inclusion and exclusion components.
The Insured Car's Loss or Damage
The section of extensive car insurance that covers your own-damage car insurance is a must-have. Under this section of the policy wording, the full details about own-damage are explicitly indicated. When filing a claim, check to see if the incident that caused damage to your vehicle is covered by your policy. If the policy does not cover the event, filing a claim without verification may cause the insurer to reject your claim.
Sum Insured–declared Value Of The Insured
You should find the Insured Declared Value (IDV) of your car in this section, which is the market value of the insured vehicle as well as the policy's amount insured. It is determined at the start of the policy term and is based on various factors such as the listed sale price of the make, model, and so on. The section also explains the depreciation schedule that would be used to modify the IDV. In addition, the component specifies how IDV will be handled in various scenarios, such as total loss, constructive total loss, and so on.
Insurance for Personal Accidents
This section of most policy wordings includes a table that summarises the nature of the covered injuries as well as the compensation scale offered to the owner-driver. Every car insurance policyholder should read this section to avoid any misunderstandings about the amount of car insurance claim available and the types of accidents covered by the policy.
Exceptions in General
The general exceptions to the insurance policy are included in this section of the policy wording, and are subject to all of the policy wording's components. Before making any claim request, policyholders should keep the components of this section in mind, as the insurer will not cover such requests and the claim will be dismissed. Accidental loss or damage to the vehicle outside of the geographical area, damage or loss arising from nuclear weapons material, claims arising from any contractual liability, and so on are some of the common exclusions of various insurance firms.
Redress of Complaints
If you are disappointed with the claim process or have questions about the claim amount, etc. To address customer concerns like,disappointed with the claim process or have questions about the claim amount, etc. , insurance firms include their phone number, email address, and branch address in the contact section of policy wordings, allowing consumers to contact them directly. If they are unable to settle your problem, you can contact the insurance company's grievance officer, whose contact information is included in the policy wordings. If you're still unhappy, you can file a complaint with the Insurance company.

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.

Written by Udit Varshney

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Udit has built B2C segments across various industries and has had significant contributions to the insurance sector. Udit in his last stint helped set out the last mile vertical, which soon became the go-to logistics name for daily needs, In his free time, Udit likes to write and listen to poetry.