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Motor Insurance

How to Get VIN, Chassis Number, and Engine Number Online?

How to Get VIN, Chassis Number, and Engine Number Online?

When it comes to vehicles, people think that their registration number is the most important thing. However, in addition to it, other numbers are equally important. These are- vehicle identification number (VIN), engine number, and chassis number. You can easily find these numbers on your vehicle’s registration certificate or chassis and the engine of your vehicle where the numbers are inscribed.

But in case you can’t locate these numbers or need them urgently, you can always get them online. Before understanding how to get VIN, chassis number, and engine number online, let’s understand what these three numbers mean and why they are important.

What is a vehicle identification number?

A Vehicle Identification Number (VIN) is a code of 17 characters used to identify private and commercial vehicles. This code is created using various numbers and letters and is unique for each vehicle.

What is a chassis number?

The chassis number is nothing but the last six characters of your vehicle identification number.

What is an engine number?

An engine number is a unique code given to each engine of a vehicle.

Why are these numbers important?

These three numbers serve the main purpose of identifying the vehicle. The VIN possesses important details related to your vehicle like the place of production, year of manufacture, RTO location, insurance policy, etc. Whereas the chassis and engine number can identify your vehicle amongst a thousand similar ones.

Now if your vehicle is stolen, the registration number on your number plate can be easily changed. Hence to give each vehicle a unique Identity these numbers are very important.

If you are purchasing a second-hand vehicle, checking the VIN will ensure that the vehicle’s history is clean and will not create any trouble for you in the future. Having no knowledge of these numbers may lead an individual to fall prey to fraudulent dealers. These numbers can help you identify the authorized vehicles and save you from malicious acts.

How to Get VIN, Chassis Number, and Engine Number Online

These three numbers can be easily found online on VAHAN. VAHAN is an online national registry launched by the Ministry of Road Transport and Highways to help customers trace their vehicle details. Here is the process you need to follow to get these numbers on VAHAN.

1. You’ll need to visit the official website of VAHAN

(https://vahan.nic.in/nrservices/faces/user/login.xhtml).

VAHAN homepage
VAHAN homepage

2. After that, you are required to click on “Know Your Vehicle Details” from the menu bar.


3. A dialog box will open where you’ll need to enter your vehicle’s registration number and then the CAPTCHA code mentioned on the screen.

VAHAN vehicle search
VAHAN vehicle search


4. Click on “Search Vehicle”

5. All the details of your vehicle including the VIN, Chassis Number, and Engine Number will appear on the screen.

VAHAN registration details
VAHAN registration details

Vehicle identification number, chassis number, and engine number are some of the most important numbers you as a vehicle owner should know about. If you find it confusing to locate these numbers on your vehicle, follow the steps above to find the numbers online in just a few clicks.

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Motor Insurance

How to update insurance details in mParivahan?

How to update insurance details in mParivahan?

It is important that you have your car insurance details updated in mParivahan as out-of-date information may lead to fines. Let us address how you can get your car insurance policy updated on the mParivahan App. But first, let us know what is mParivahan.

What is the mParivahan App?

mParivahan is an application made by The Road Transport and Highways Ministry of India. The app provides access to various important motor-related details such as vehicle owner name, car make, model, registration date, registering authority, fuel type, vehicle age, vehicle type, insurance validity, etc. It is also a reliable government app for All India RTO vehicle Registration Number Search.

First, let us discuss how an insurance policy gets automatically updated in the mParivahan app.

Whenever you buy an insurance policy from an agent or online. Its data gets stored in the insurer’s server. Supposing you have bought a car policy, the details of the car policy will get stored in the insurer’s server.
Now that your car policy details get stored in the insurer’s server, the insurance company will send your policy details to the RTO.
Post this, the vehicle details and the details of the policy will be matched verified, and updated in the mParivahan app within 72 hours.

What if your insurance details don’t get updated In the mParivahan app?

Usually, it takes up to 72 hours for your latest insurance policy details to get updated in the Mpravahan app, in case your policy detail is still not updated, You can write a mail to:- helpdeskmparivahan@gov.in
Addressing your query with valid car and policy details. You should receive a reply from the mParivahan support group within 24 hours and your policy will get updated shortly.

 

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Motor Insurance

How to get a duplicate car insurance copy online?

How to get a duplicate car insurance copy online?

Your car insurance policy document is a legal document that mentions the inherent terms and conditions between the policyholder and the insurance company. It also acts as proof of insurance for the insured. Hence, it is crucial for the policyholder to safeguard their policy documents so that they may come in handy when required.

There can be instances where you may misplace, lose, or damage your policy documents. What should you do then? don’t worry! This article will talk about just that.

Let us show you how you can get your duplicate car insurance policy copy online

In this article, we will learn:

  • How to get your duplicate car insurance policy copy online?
  • How to get your duplicate car insurance policy copy offline?

How to get your duplicate car insurance policy copy online?

This is a faster and easier method to procure a copy of your car insurance policy.

Steps to get your duplicate car insurance policy copy online

Step 1– Kindly visit your insurance provider’s website.

Step 2– successfully log into your profile by entering valid details like your policy number, full name, registered mobile number, etc.

Step 3– Download your policy document via the insurance company’s online dashboard.

Step 4– View and examine your policy document and take a printout for safekeeping.


How to get your duplicate car insurance policy copy offline?

Now, let us guide you on how you can get your motor insurance papers offline:

Step 1– Intimate your insurance company
You must immediately inform your insurance company that you have lost your car insurance policy papers. Doing so immediately will enable the insurance company to initiate the process of issuing a duplicate copy of your insurance policy.

You can inform the insurance company at the earliest on their toll-free number or even via email. Further, you can also inform your insurance agent about the same.

You can find the relevant toll-free number and email address on the official website of your insurance company.


Step 2– File an FIR (First Information Report)
You will have to file an FIR with the nearest police station. This will act as proof that you have lost your car insurance papers. You will then have to submit the FIR copy to the insurance company to get a duplicate policy copy from them.

 

Step 3– Give advertisement in a local newspaper
After filing the FIR, you will also be required to submit an advertisement in a state newspaper, stating the loss of your car insurance policy. You will have to bear the expense for the ad from your own pocket and the insurance company will not be liable for the same.

 

Step 4– Submit an application to the insurance company.
Apart from informing your insurer, you will also have to submit a formal written application to them requesting duplicate policy documents. Kindly provide them the application with all the valid details regarding your policy such as your policy number, full name, date of issuance, type of coverage, etc. Submit the written application along with the Police FIR.

 

Step 5- Acquire an indemnity Bond.
The final step would be to get an indemnity bond made to acquire your policy documents and then submit them to the insurance company. The bond must include your full name and you will also require two witnesses to sign on it. You are required to sign an indemnity bond on non-judicial stamp paper and get it notarized. Once you submit the indemnity bond to your insurance company, they will issue you your duplicate car insurance policy copy.

Conclusion

it is mandatory to carry your car insurance documents while you travel. If you have misplaced/lost them follow the steps mentioned above to procure the insurance copy to avoid any penalties or fines.

 

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Comprehensive insurance vs third party insurance

Comprehensive insurance vs third party insurance

Understand the difference between comprehensive insurance and third-party motor insurance in a nutshell.

The difference can be distinguished by the coverage provided. The prime difference is that third-party vehicle insurance provides you financial coverage against any damage or loss caused to a third-party. whereas, comprehensive insurance not only covers third-party liabilities but also offers coverage for the owner’s loss or damages.

Let us understand both policy types in detail to give you a better understanding

What is a comprehensive motor insurance policy?

A comprehensive motor insurance policy provides complete coverage of the owner, his vehicle, and even the third-party involved.

Benefits of a comprehensive motor insurance policy

Protects your vehicle

It protects against damages caused to your vehicle due to:

  • Accident
  • Fire
  • Earthquake
  • Floods
  • Theft/burglary
  • Windshield wreckage
  • Damage caused by an animal
  • Damage caused by fallen objects
  • Damage against storms, cyclones or , windstorm

Covers third-party Vehicles

This policy also covers third-party liabilities. Bodily harm or injuries caused to the third party are covered.

Value for money

It is a value for money policy for its extensive coverage.

Customization

in a comprehensive policy you can customize your car insurance policy according to your needs and requirements by opting for various add-on covers.

Personal accident cover

It comes with an inbuilt personal accident cover.

Exclusions

Here are few points that are excluded in a comprehensive car insurance policy

Driving without a license

The policyholder will get their claim rejected if they were driving without a license during the event of a mishap.

Drink and drive

Any loss or damages claimed by the policyholder under the influence of alcohol or intoxicants will be dismissed.

Deliberate negligence

Any claims found to be made by deliberately damaging the car will be rejected.

Valid license

Any claims made while carrying a learner’s license will not be accepted.

Nuclear war

Any damages or loss caused due to a nuclear warhead or mutiny will not be covered.

Mechanical & electrical damage

Any damage to the mechanical and electrical system of the vehicle will not be covered.

Third-party car insurance policy

What is Third-party liability vehicle insurance?

A third-party liability vehicle insurance is the most basic and mandatory form of car insurance. It is mandated to have at least a third-party vehicle insurance policy as per the Motor Vehicles Act 1988.
As the name suggests, this policy provides financial coverage against third-party liabilities only.

Benefits of a third-party liability car insurance policy

Covers third-party liabilities

As mentioned earlier, it protects the interests of the third-party that is involved in the accident. Any court-ordered compensation will be paid to the third-party by the insurance company.

Covers death or injury

Provides financial compensation to the third-party in case of death or disability.

It is mandatory

As per The Motor Vehicles Act 1988, it is mandatory to have a third liability car insurance policy. It is illegal to drive on Indian roads without it.


Exclusions under third-party liability motor insurance

Own damages

Damages caused to your own vehicle will not be covered under third-party motor insurance.

Drinking and driving

Any claims made under the influence of alcohol or intoxicants will be rejected

Driving without a license

Any claims made while driving without a driving license will not be accepted.

Which policy should you opt for?

It is always advisable to opt for a comprehensive motor insurance policy as it provides complete 360- degree protection. Although not necessary, opting for a comprehensive motor insurance can save you a lot of hassle in the future.

Comprehensive insurance vs third party insurance

 

Comprehensive Insurance

Third -party insurance

About

This policy offers financial coverage in case of any damages or loss caused to the car, owner or the third-party.

Offers financial coverage against any damage caused to third -party only.

What is covered?

Covers accidental damages caused to own vehicle as well as third party vehicle.

 

Covers damages caused due natural calamities like earthquake, floods, riots, etc.

 

Covers against man made calamities like fire, strikes, etc.

 

 

Covers against accidental damages caused to the third party or their vehicle.

 

 

Premium

Premium cost shall depend on various elements such as car make, car type, etc.

 

Premium cost will be higher compared to a third-party insurance policy.

 

 Premium cost will be cheaper compared to a third-party insurance policy. This is due to the limited protection that this policy provides.

Optional add on cover

You could opt for various add-on covers/riders based on your needs.

Some notable add-on covers:

Zero depreciation cover

Engine replacement cover

Roadside assistance cover.

Not available

Is it mandatory?

It is upon the discretion of the policyholder’s needs and requirements whether   to go for  a comprehensive insurance policy.

This policy is mandatory under The Motors Vehicles Act, 1988.

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What is hypothecation in car insurance? (Simply explained)

What is hypothecation in car insurance? (Simply explained)

So, you want to know what is hypothecation in car insurance? Great! Learn about the concept of hypothecation using simple and easy-to-understand examples. This article will discuss the following important points:

  • What is hypothecation?
  • Examples of hypothecation
  • How to add hypothecation to your policy?
  • How to remove hypothecation from your car insurance policy?

What is hypothecation?

Have you ever bought a vehicle on a bank loan? If you have, then your vehicle has been hypothecated. What does that mean? It basically means that even though your name will come on the motor insurance policy under the ‘insured’ section, the ownership of the vehicle remains with the bank. It will also be mentioned on your car insurance policy that your vehicle has been hypothecated (and the name of the bank).

Examples of hypothecation

Let us understand the concept of hypothecation with a simple and easy-to-understand example. Let us assume that Mr. Shankar bought a new Honda City on loan. As the car is on loan, the RTO will make a note on their part that the vehicle is still not fully paid for and is hypothecated. The ownership of the car will remain with the bank. Once Mr. Shankar pays off the loan, he can remove this hypothecation from his RC book and car insurance policy.

hypothecation in car insurance
hypothecation in car insurance

How to add hypothecation to your policy?

You will have to furnish your vehicle financing details to the motor insurance company before purchasing the insurance policy. An RC book copy mentions the financier’s name and will usually suffice. Once the insurance company sees that your vehicle is still not fully paid for, it will mention that this car is hypothecated under the name of your bank.

How to remove hypothecation from your car insurance policy?

You can also remove your car hypothecation once you have paid off the bank loan. Let us understand this process:

Repay your car loan: First, you will have to completely repay your car loan.

Get NOC from the bank: Once your loan is repaid, the bank will provide you with a No Objection Certificate.

Submit documents to the RTO: The following documents will now need to be submitted to the RTO:

  • NOC from financier or bank
  • Duly filled Form 35 (this is a form that cancels the hypothecation)
  • PUC and current insurance policy copy
  • Pay RTO fees and initiate hypothecation removal: After you submit the above documents, you will have to pay the requisite RTO charges and initiate the removal.
hypothecation removal NOC
hypothecation removal NOC

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Types of motor insurance

Types of motor insurance

Motor vehicles include two-wheelers, four-wheelers like cars and jeeps as well as trucks and busses. They are all an indispensable part of daily life. However, road transport involves multiple risks. A motor insurance policy can cover the financial losses that might be incurred during a mishap with your vehicle. Before you decide to take up insurance, it is important to be aware of the different types of motor insurance available to make a safe and well-informed choice.

Usually, the vehicles are insured at their current value in the market i.e., the IDV or Insured Declared Value. This value depreciates with time and is higher for the new vehicles than the old ones.

Here are the major types of motor insurance plans discussed in detail, this will enable you to recognize the type of insurance you need to take up for your vehicle.

Types of motor insurance based on vehicle owned:

There are different insurance policies available for cars, two-wheelers, and commercial vehicles. They are as follows:

1. Car insurance

This motor insurance is mandatory when buying a new car. It is one of the most important purchases to be made to ensure safe-guarding of the car from natural disasters, accidents, thefts, etc. Insurances also have mandatory clauses such as third-party liability which protects against claims of third-party vis-à-vis damage occurred to another person’s life or property by a motor vehicle.

2. Two-Wheeler insurance

The policy primarily looks into the insurance aspect of motorcycles and scooters. With the help of Two-wheeler Insurance, the insurer can claim damages in the case of an accident that is either caused on the road [while driving] or through some natural disaster. Claims can be made even if the concerned vehicle is subjected to theft. The insurance plan also includes personal accident claims of the concerned rider or passengers involved.

3. Commercial vehicle insurance

The insurance policy takes into consideration all types of motor vehicles used for commercial services such as buses, heavy-duty commercial vehicles, trucks, and ambulances. These insurance policies protect businesses from potential losses arising from damage to the vehicle, theft, accidents, explosion, etc. It also covers the legal liability towards third parties on account of bodily injury or property damage and death.

Types of motor insurance based on coverage

Motor insurance policies based on coverage refers to the type of insurance plan selected, which can be broken down into the following:

  1. Comprehensive insurance
  2. Third-party liability insurance

Comprehensive insurance

As the name suggests, a comprehensive vehicle insurance plan extends protection and security to the policyholders for almost any potential situation. This includes any expenses suffered by the policyholders in place of theft, accidents, or damage to the vehicle.

A personal accident cover qualifies the policyholder to claim compensation in the event of death or injury due to an accident. Comprehensive vehicle insurances allow adding on plans to the existing policy without the need to take out several policies.

What does a Comprehensive Insurance Plan Cover?

It is imperative to know the different aspects and situations that are covered by a comprehensive insurance plan.
Some of the different situations are given as follows:

  • Theft
  • Vandalism
  • Any natural disaster causing damage to your vehicle; such as earthquakes, floods, fire, and inclement weather conditions.
  • Situations of civil unrest such as riots and protests damaging your vehicle.
  • Damage caused by animals

An important point to note about comprehensive insurance plan cover is that it includes third-party insurance by default.

What does a comprehensive insurance not cover?

In the following cases, the insurance coverage won’t be extended to the vehicle or the policyholder:

  • Damage to the vehicle caused due to driving under the influence (DUI) of narcotic substances or alcohol.
  • Damages caused to the vehicle during collisions.
  • Wear and tear of an automobile.
  • Mechanical or electrical breakdown.
  • Damage to the vehicle when the driver does not have a valid driver’s license.

Third-Party liability insurance

Essentially, third-party liability insurance safeguards against the claims of damage to a third party by the insured vehicle. Hence, these insurance plans protect the interest of the policyholder.

Having a third-party cover for your vehicle helps to lower the risk of the policyholder being implicated in a multitude of situations.

How does a third-party insurance work?

A third-party insurance cover seeks to indemnify the first party against damage claims made by the third party.

There are two broad classifications of third-party insurance:

Liability coverage

Bodily injury liability covers physical injuries caused to another person by the insured. These encompass hospital care expenses, lost wages due to injury or disability, as well as death or permanent disability.

Property damage coverage

Property damage liability covers costs due to the property damage or complete loss of property. It includes claims related to the destruction of landscapes or property – mailboxes, fences, front gardens, gates, etc.

Whenever an accident takes place, the insured individual must notify the insurance company of the situation at the earliest. Some of the following crucial details need to be collected and presented to the insurance company:

  • Description of the accident along with date and time of the event.
  • Description of injuries sustained by driver and others involved.
  • Description of damage to property or vehicle.
  • Details of witnesses present at the scene.
  • Photographs collected from the accident site for evidence.


Policyholders must cooperate with the police and provide all the necessary details to ensure that a smooth investigation takes place. The insurer must make a note of the First Information Report (FIR) number, if applicable, and impart the name of the insurance company.

In conclusion, before purchasing a policy, individuals must thoroughly read the document to understand what is and is not covered under the policy. The foremost objective of an insurance policy is to protect vehicle owners against financial as well as personal and vehicular damage. The government of India has made it mandatory for every vehicle to have motor insurance before it is taken on the road.

A smart and informed decision must be made keeping all the points in mind to be well protected against unfortunate future incidents.

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What is EP in Car Insurance?

What is EP in Car Insurance?

Taking up an insurance policy for your vehicle is extremely important, as it is an expensive asset. With numerous insurance policy options available in the market today, choosing and buying the one that is best for you can be a tricky job. One might plan to choose a policy that has the lowest premium rates, but this often leads to important aspects being missed out on. One of them is the engine of the vehicle.

The engine of a car is rightfully called its ‘heart’ and therefore it should be taken utmost care of.
A comprehensive car insurance policy only covers repairs to your car caused by accidents. The engine of a car needs special attention and care for your vehicle to last long. Hence, it is always advised to look for add-ons for your engine. And the best add-on to avail is Engine Protection [EP] in car insurance.

Let us now answer the fundamental question of “What is EP in car insurance?”

What is an engine protection (EP) cover?

The EP in car insurance is basically an added coverage that is taken up with the comprehensive car insurance policy. This particular add-on offers coverage in the case of losses or damage to the vehicle’s engine of the insured individual. The engine protection cover provides compensation for the repair or replacement of the car’s engine and parts.
Now that we have covered the basics of “What is EP in car insurance”, let us look at the benefits and exclusions of it.

Benefits of EP add-ons:

  • Any damage to the engine needing repair or replacement will be reimbursed by the insurance company up to the limit specified in the policy. The benefits of this insurance add-on are:
  • It is beneficial for individuals residing in places that are prone to flooding; during monsoons, natural calamities, etc.
  • It covers any engine damage due to water entering the engine.
  • It covers engine damage caused due to leakage of lubricating oil.
  • Physical damages to essential elements of the engine such as connecting rods, gearbox, etc. are also included in EP plans.
  • Owners of new or expensive cars might have high costs of engine repair and replacement. Hence, an EP plan is beneficial.

Exclusions of EP add-ons:

The policy comes with exclusions and conditions where the add-on is not valid. The exclusions are as follows:

  • Age of the car: This add-on is only applicable for cars that are below 5 years old.
  • Force-starting the car: When submerged in water, the engine shuts down to protect itself and prevents water from getting in. Do not try to start the engine by force. This will not just damage your engine but also may lead to the rejection of your claim.
  • Limited validity for claim: Depending on the insurance company, there are only one or two claims that can be made within the policy period. In case the insurance holder wishes to make another claim, a new add-on has to be purchased.

Conclusion

It is essential for everyone to do their research before investing in any car policy. It will help you to acquire all the necessary details about a car insurance policy before choosing the right policy with the right add-ons.
Now that you have a brief idea about “What is EP in car insurance”, it’s time for you to educate others.

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Understanding your car insurance claims process

Understanding your car insurance claims process

Car owners buy car insurance so that they don’t need to face financial loss after an accident, theft, and can get coverage for repair costs, medical facilities, etc. In case of an accident or theft, the insured individual is required to place a claim. But are you aware of the car insurance claims process?.

There is a simple and definite procedure to claim the insurance facilities. Relevant and appropriate information has to be provided to the insurance company for hassle-free and quick processing. If you are wondering how to claim your insurance, this article is for you.

How to place a claim after a car accident?

This is the most common case that happens and you need insurance facilities for repairing and medical facilities. So, how would you place a claim in the case of a car accident? Let us check out.

  1. Your very first duty after an accident, if you are not severely injured, is to collect photographs and take notes. If you have been involved in an accident with another car, pen down the car number, owner’s name, model, etc. Click photographs of the driver, car, your car, and the exact scene after the accident. These are valid pieces of evidence that you would need to show to the police and the insurance company.
  2. Though it is optional, it is always a good decision to report the accident to the local police station. Get a copy of the police report so that you can show it to the company. This helps in the quicker processing of the claim.
  3. Now is the turn to inform the company. You should go step by step. So, now you would require to fill a claim form. The claim form is available on the website of the insurance company or you can collect the form from the office. Fill the form carefully giving each and every detail.
  4. Once the claiming process is primarily done the company would send a surveyor to the accident spot to see the situation and examine the severity of damage to the car. You can provide the information and photographs you collected if the surveyor asks for them.
  5. The surveyor would prepare a report providing information and detail about the accident, damage details of the car, etc. He would send this report to the insurance company and submit a copy of the report to the insured person.
  6. Once the report is made, the assistance needed by the insured would become clear. The surveyor will then accompany you to the garage and offer the required guidance.
  7. Once the repairment is done and the car repairment bills are in your hand. This bill needs to be handed over to the surveyor. He would send the bills to the insurance authority.
  8. The insurance company would evaluate the bills and provide the payment to you.

However, always remember to report the accident immediately to get the maximum reimbursement. If you report it late, you may not get the expected amount. Therefore, the very first take is to inform your insurer about the accident and let a surveyor come to review the condition. It is your responsibility to ensure that every required detail is conveyed to the surveyor with relevant supportive proofs, like photographs, etc. It is highly recommended to bring every tiny piece of information to the notice of the surveyor in order to gain the maximum benefits.

Information needed to file a claim after a car accident

What information should you collect to file a claim? There are a few things that can help to make your case stronger and can act as solid evidence. Here is a list of the basic information that you must collect before filing a claim.

  • Note down the insurance policy number from the policy card.
  • Mention the date, time, and location of the accident.
  • Try to click some photographs of the accident scene. This will help the insurer to have a clear picture of what exactly happened.
  • Provide an in-depth description of how the accident happened.
  • If another party is involved in the accident, you would need to provide the insurance and contact details of the party.
  • You would have to provide the police station name where you reported the accident along with the report and the report number.

How to file a claim in case of car theft?

Now how would you file a claim if your car gets stolen? The process is more or less like the claiming procedure after an accident. You need to follow a few simple steps, let us take a look into the procedure.

  • Your first task is to file a police complaint about the theft.
  • Share the copy of the FIR with the insurance company authority.
  • Now the insurance company would send a representative for investigation.
  • You have to wait until the investigation is finished and the claim is approved by the insurance company authority.
  • Once your insurance claim is approved, you are required to submit the RC book of the car along with the duplicate keys.
  • Now the name of the car owner would be changed from yours to your insurer’s name.
  • You will also require to submit a subrogation letter along with some other papers that the insurer would ask for. Make sure to put on the signature on the papers.
  • Once the paperwork is done, the insurance authority would go ahead with the reimbursement of the claim.

The procedure is pretty simple. You just need to act rationally whenever an accident or incident of theft occurs. In case of an accident, don’t blame the other party. Don’t panic in that situation. Let the insurer handle the situation and figure out who is at fault.

Similarly, in the case of theft, report your insurer instead of panicking. Whenever the case is genuine, the insurer is always there to help you out. So, nothing to worry about.

Before buying insurance, read out and learn about the claiming procedure so that you can take immediate action after a mishap and make the car insurance claims process seamless.

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What is Zero Depreciation Car Insurance?

What is Zero Depreciation Car Insurance?

We have often come across the word depreciation. We usually hear it while we are reselling our machinery, especially cars, or while balancing our account books. Before understanding what is zero depreciation car insurance, it is important that you are familiarized with the concept of depreciation.

Depreciation plays a very crucial role in the motor insurance segment. Simply put it is a loss in the asset’s value. This deduction in value is done from time to time. It usually happens due to the factors like the age of the vehicle, no. of miles run, maintenance record, etc. This is the main reason why people prefer to buy second-hand cars because they get them at a reduced price.

We all know how complicated the insurance industry is. What usually happens is in case of an accident or damaging event, if the parts of your car are damaged, you won’t recover the whole amount lost.

Usually, the companies reduce the amount of depreciation on the part and then they pay you the balance. The person has to pay for the variation between the market value and depreciated part of the car.

This is where zero depreciation car insurance comes into play.

What is zero depreciation car insurance?

As the name suggests this category of insurance nullifies the depreciation factor while calculating the claim. If you buy a car insurance policy with zero depreciation then it doesn’t take into consideration the depreciation factor while reimbursing your claim.

The normal general insurance policies take into consideration the depreciation factor and then give you the amount as reimbursement. In zero depreciation, it’s not the case.

A zero depreciation policy can help you get the whole amount of compensation thus safeguarding you from all the losses that you may incur due to depreciation. You can buy this category of insurance while purchasing a new car or while renewing your policy.

Benefits of zero depreciation car insurance

1. No depreciation

As already mentioned, when you make a claim for any part of your car, the depreciation factor will not be considered while giving you the claim. The insurance company has to make the compensation which is in line with the market value of the car.

2. Major service providers

All the major insurers in the country provide this option in their offerings in the category of auto insurance. Zero depreciation is an indicator of the quality of the service provider.

3. Nullifies investment

Zero depreciation is a valuable addition to your basic auto insurance coverage. The elimination of depreciation factors makes your investment almost nil. It means that you will get a majority of all the amount that you have invested to repair your car or its parts.

4. The best option for New drivers

It is a highly suitable option for the new drivers because the fear of losing money is eliminated. We all know that the car starts to depreciate as soon as it comes out of the showroom. The new drivers are more prone to accidental situations thus it is better to nullify the depreciation aspect with zero depreciation.

Factors to consider before purchasing zero depreciation cover

After understanding what is zero depreciation car insurance. Now you should understand the factors that you should look for before purchasing zero depreciation insurance coverage.

1. Age of the car

There is a certain limit in terms of the number of years for purchasing zero depreciation insurance for your cars. You should always know that zero depreciation insurance is only available for new cars. The best thing to do is buy this while purchasing your new car.

2. Limitations on the number of claims

There are only a certain number of claims that you can make in the zero-depreciation policy. You should talk to the agent about this before making the purchase. This factor varies from one company to the other.

3. Claim settlement policy

Always look at the mechanism that your insurer is opting for while settling your claim. There is a certain percentage of reimbursement limitation on each material. For example- 50% depreciation on nylon parts. This is a bit of a complex factor about which you can talk to the representative to easily understand this.

4. Place of registration

If you have registered your car in urban areas then your premium rate is going to be a bit high as compared to the rural areas. The reason is that the cars are most susceptible to damage in the urban areas as compared to the rural areas.

5. Fuel and engine type

The fuel and engine type also plays a crucial role in deciding the zero-depreciation factor. The policies of each company vary as per the engine and fuel types.

Who should buy zero depreciation insurance?

People should also consider some personal factors before buying this option for their cars.

  • People who own luxury cars and have installed expensive parts in their cars. The reimbursement through zero depreciation will help you save a lot of money.
  • People who don’t like small scratches and dents on their cars.
  • People who are relatively new drivers and are just starting on the road.
  • People living in high-risk zones like difficult terrain or areas which are highly prone to accidents.
  • New car owners should always consider buying zero depreciation insurance coverage.

Conclusion

This was just a brief to explain what is zero depreciation insurance. You must always consult an expert and collect all the necessary information. The companies have a lot of options to offer to their customers, but you must always compare and only then choose a plan for yourself.

People apart from the above-mentioned categories should also opt for a zero-depreciation policy. This has become a very important aspect because the number of cars is increasing every day and the possibility of accidents and thefts is also on the rise.

It is always in your favor to choose the option of zero depreciation coverage. Depreciation is a factor that always leads to losses. The Zero depreciation insurance coverage will save you from the losses that may arise due to depreciation.

Are you looking for a new insurance policy or a policy renewal? Reach out to us and let us assist you.

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Motor Insurance

What is First-Party Insurance?

What is First-Party Insurance?


An insurance contract is a contract between the first and second party wherein the second party or the insurer promises to pay or compensate the first party for his losses that might arise due to accidents or other loss-triggering events.

The motor and vehicle laws all across the world have made it mandatory for an individual to insure their car before getting it on the road. Multiple types of insurance categories vary as per the laws of the land. Before getting into the other details, you must first know what is first-party insurance and who is referred to as the first party.

Who is the first party?

The owner of the car is the first party. To simply put it, the first party in insurance is the person who is paying for the insurance policy. The purchaser of the policy is known as the first party. He/she is the individual who is going to receive all the benefits (compensation) whenever there has been a triggering event.

What is first-party insurance?

In this category of insurance, the first party can make the insurer liable for the losses that he/she has incurred in case of theft, damage, accident, etc. This insurance also covers the third-party losses that may arise due to the damage caused by the car owner. For example- Body injury during an accident, etc.

Procedure of filing first-party claims

A First-Party insurance claim can be initiated by the responsible policyholder. Claims can also be made by the immediate nominee specified in the insurance contract upon the death of the legal policyholder. The following method must be followed to successfully file a first-party insurance claim:

  1. Get in touch and inform the company or insurer responsible.
  2. Obtain a copy of an FIR from the regional police station where the initial accident occurred.
  3. Submit all the required documents to the insurance company.
  4. The vehicle must be submitted to a workshop as authorized by the police station if any damage is incurred to the car.

After the completion of the filing procedure, a thorough investigation is conducted by the insurance company followed by a complete analysis of the documents submitted. Based on the evidence collected, the insurance firm will approve or reject the claim filed.

Difference between First-party and Third-party insurance

In the case of first-party insurance, the beneficiary is the owner of the vehicle. Whereas, in the case of third-party insurance, the compensation and benefits are availed by the other individual who might have suffered in the accident.

First-party insurance covers the losses of the vehicle owner up to the amount decided in the policy. On the other hand, in the case of third-party insurance compensation is paid depending upon the losses suffered by the third party.

Before purchasing your insurance policy. You should always check for these laws. It will help you to purchase the policy as per the rules of the country and will also safeguard the various penalties that you may have to incur because of non-compliance.

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