Why you need a motor insurance - getting under the hood of motor insurance

1. Why you need a motor insurance - getting under the hood of motor insurance According to a survey, more than 60% of the vehicles on the roads in India do not have a valid motor insurance. Despite motor insurance being mandatory as per the law set by the Motor Vehicles Act, most people do not avail an insurance - citing complications with claims and getting enrolled. That said, getting a claim in this day and age is easier than ever. Based on a study, apparently more than 10,000 motor insurance claims are made every day, over 1,000 in metropolitan cities and approximately 95% of those claims have been approved of. Why is it important to have a motor insurance If in case a motor insurance policy holder holding a third-party insurance (which is mandatory) meets with an accident, the insurance will cover the costs of the damage faced by the third-party. In this case, the policyholder is not required to make the payout towards the victim or the other person involved from his/her own pocket. While the third-party insurance covers the cost of only the third-party, comprehensive insurance packages covers the cost of both parties that have met with the accident. It also offers coverage in case of a natural calamity, fire, floods,etc. Hence having a motor insurance is absolutely necessary if you want to save on cost of damages for the first and the third-party. What you should do if you meet with an accident Getting into a scuffle or bickering with the party you meet with an accident should at no point be an option when you meet with an accident. There’s no point allowing your blood pressure hit the ceiling if you’re sure that your insurance will cover the damages. As soon as you meet with an accident, resolve the situation in a patient manner (not on middle of the road especially). Take a picture of the damage caused to your vehicle and immediately call your insurance company. Most insurers offer towing services, and in order to risk complications during the claim, it is safest to have your insurer arrange for your car to be towed to the workstation. Insurers have network workstations where they offer their subscribers with the benefit of cashless settlements. It’s most convenient to have your car repaired in any of the network garages of your insurer as the claim process is taken care by the workshop crew and your insurer. Why claims are rejected Most people do not believe that their claims will be settled and hence allow their insurance to lapse and never bother to renew it. That said understanding why your claim could have been rejected is important. Listed below are reason why your claim could have been rejected: • You do not have a valid license.

2. • Your car was possibly used as a taxi. • The insurance and the vehicle is owned by different people. This is most common when people buy used cars or bikes. They deter from the process of changing the title of the registration as it could depreciate the value of the vehicle and as a result do not change the insurance name on the vehicle as well. Ensure that the title of the registration is yours and the insurance of the vehicle is in your name as well. • Some car owners install LPG cylinders in their cars and fail to notify the RTO of the change. • Negligence of the owner is the biggest factor for claim disapproval. For example, owners try to wade their cars through flooded streets and try to claim insurance for it being waterlogged. Ensure that you are not filing for insurance because of your negligence or you could very well face the result of your claim being rejected. When availing an insurance, always make sure that you have add-on insurance covers - in the case of engine seizure, tyre repair extensions, in the case of calamities, etc. Lastly, only a tenth of the vehicles on the road that meet with accidents file for insurance claims. Working in cohesion with the government and insurance companies will help you in the time of emergency, and cover the cost of damages without you having to shell out any money.