Insure with confidence: Your guide to car insurance

Maintaining car insurance is the primary step to defining your responsibility as a car owner. Once you have decided upon the vehicle model, together you must analyse the several aspects of befitting car insurance too. Car insurance from Zurich Kotak General Insurance deserves special mention in this respect. This comprehensive basic car insurance guide will highlight the most critical aspects.

What is a car insurance?

This is a mutual contract between the car owner and the chosen insurance company enabling the owner to enjoy protection of his/her car against any damage or loss by paying a specific sum as a premium to the insurance company. The company offers protection because of this as per the terms of the plan.

Is car insurance mandatory in India?

Yes, as per the Motor Vehicles Act of 1988, maintaining car insurance is compulsory in India for every car owner. Non-maintenance of car insurance is a punishable offence, leading to heavy penalties.

Types of car insurance plans in India:

Two types of car insurance policies prevail in India:

Third-party car insurance:

As the name suggests, this plan only caters to the loss and damage of the third party during any accidental circumstances involving your vehicle. This is the basic plan and is compulsory for every vehicle.

Comprehensive car insurance:

This offers a much more elaborate coverage including both self and the third party. This is essential, especially for more expensive and luxurious vehicles.

Choosing the correct car insurance

These few simple techniques might aid you in determining the right car insurance for your beloved beauty on wheels:

1. Understanding the necessities

2. Knowing the insurance provider and their market credibility

3. Knowing the basic insurance terms like IDV, NCB, etc.

4. Complete assessment of all the terms and conditions

5. Review the claim process

6. Clarify the add-ons

7. Online purchase for a smooth procedure

8. Easy Car Insurance online renewal

Basic insurance terms to know

IDV:

The Insured Declared Value (IDV) refers to the optimum sum that the insurer provides during the complete loss or damage of the vehicle. It is generally the current market value.

NCB:

No Claim Bonus is a reward from the insurer for every claim-free year. It can be in the form of discounts, reward points, cashback, etc. It is applied during plan renewal.

Zero Depreciation Cover:

This is the payable amount that the insurer determines using a specific formula using the depreciation factors during any claim settlement after an accident.

Voluntary deductible:

This determines the amount that needs to be paid by the policyholder during claim settlement. The higher the deductibles the lower the premium.

Common exclusions

Some of the common exclusions of car insurance policies are:

1. Depreciation (except for spate add-on covers)

2. Mechanical or electrical breakdowns (except for spate add-on covers)

3. Damages caused by illegal driving, drunken driving, driving without DL, underage driving, etc.

Conclusion

This comprehensive guide sheds light on some of the very basic principles of car insurance and its necessity. Maintaining Zurich Kotak General Insurance’s car insurance will offer you the insurance confidence that is essential to sign the deal and make the contract to secure your beloved four-wheeler.

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