1.  Car Insurance

Legally, No vehicle is allowed to be driven on the road without valid insurance. Hence, it is obligatory on our part to get vehicle insured. There are two types of vehicle insurance – “Act only risk” – Policy A (known as Third party risk) and “comprehensive Insurance policy” – Policy B.

2.  Policy ‘A’ (Third Party Insurance)

Policy ‘A’ covers risks required to be covered under the Motor Vehicle Act. It is mandatory that every car owner be covered against Act Risk under Section 146 of Motor Vehicles Act 1988. The scope of cover is to pay compensation for death of or bodily injuries to third parties and damage to the property of third parties. While the Insured is treated as the first party and the Insurance Company

3.  Comprehensive Insurance Policy – Policy –‘B’

A comprehensive insurance policy includes: • Third party cover. • Loss / Damage to vehicle as a result of an accident, fire or theft. • Risk against floods, earthquake, riots and strikes. • Accessories like music system, air-conditioner, etc. can also be covered by paying additional premium. • Risk of loss/damage while in transit by road, rail, watercraft, air, elevator, etc. T

4.  Renewal of Insurance Policy

The insurance policy has to be renewed within the period of validity. Any delay in the renewal of the policy renders the policy invalid and the owner will not be able to avail any benefit of the policy. Also, driving without a valid insurance policy is a legal offence.

5.  No Claim Bonus

Insured owners are eligible for a discount in the premium of a comprehensive insurance policy at the following rate: • 20% for the 1st year. • 35% for the 2nd year. • 50% for the 3rd year. • 65% for the 4th year and afterwards The value of the discount depends upon the insurance claims owners have made in that particular year. This discount is adjusted against renewal premium. Owners

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