Several rumours float among the buyers that motor insurance claims are often dishonoured. It is not the truth, but the important question is, why do these rumours begin and what is the truth behind them?
One might not try to find the reason for these rumours but arrive at a conclusion based on them.
All car insurance policies have certain terms and conditions. If one does not stick to them, their claim application is rejected. So it is crucial to read through the policy document thoroughly. A careful reading will help you understand the various terms that you need to abide by. So the next time when you need to file an insurance claim, it is honoured, and you have a hassle-free claim.
Let us analyse a few essential sections under your motor insurancepolicy –
1. Third-party liability.
The mandatory component to your insurance policy is third party liability. All motor vehicles must have at least third-party insurance cover as per the Motor Vehicles (Amendment) Act, 2019. A third-party cover ensures that any injury or damage to person or property or such other person is covered under your contract of insurance. Moreover, the premiums for these third-party policies are governed by IRDAI.
2. Personal accident cover.
One must check the personal accident cover section for details on the coverage under the plan. The policy document generally contains the nature of injury against the scale of compensation for it.
3. Comprehensive cover.
The damage covered by your motor insurance plan for your vehicle is crucial in a comprehensive policy. This section is often titled ‘Loss of or damage to the vehicle insured’. When buying comprehensive car insurance, you need to check for details regarding the cases covered under this coverage. Being aware of the inclusions under your policy helps in filing a claim with your insurance company.
4. Other important points.
Other than the points mentioned above, one needs to be aware of certain important terms like a No Claim Bonus (NCB), depreciation, deductible to your policy, add-on covers, Insured Declared Value (IDV), etc. These terms form the basis of comparison for the different motor insurance policies.
5. Redressal for your grievances.
Have you wondered the remedy for having raised a claim after complying with various terms and conditions and it has been rejected? Or in cases where the sanction to your claim is fairly low? These questions are genuine concerns for a car insurance buyer and need to be addressed. Your insurance document has a section that specifies the details of the contact point where you can get all such concerns resolved. Also, even after raising a concern, your issue is still not resolved, you can contact the insurer’s grievance officer. The last resort in such cases can be an Insurance Ombudsman.
These are some crucial points you need to peruse and understand in the car insurance policy document. It is essential to be aware of these terms at the time of claim. Also, it is advisable to re-read the policy document at the time of car insurance renewal. It will ensure a smarter buying process.