Car Insurance Quotes
Introduction to the concept of Insurance & Risk in Insurance:
Principles of car insurance qotes are same for Life and General Insurance. As we analyze the problems faced by all the human beings, we realize they are nothing but related to RISKS. The principles of insurance are very vital for living today. One must consider himself or herself fortunate to have knowledge of insurance, particularly when it comes to the aspect of risks.
We read everyday in the newspapers about accidents, bomb explosions taking place. One out of 10 vessels on the high sea experience heavy weather. 30 out of 100 vehicles meet with accidents on the road. You step out of your house and at every moment, encounter number of risks that one cannot imagine. What is worrying for all of us is not the operation of those risks but the operations that are accidental, unforeseen and external. These three words V accidental, external and unforeseen have car insurance qotes made the life of each and every individual and that of an organization most uncertain. In the world of literature, uncertainty can be a pleasure of life. But at realistic level, it amounts to huge loss worth crores of rupees resulting in wastage of huge investment, labour and intelligence. One is always worried about himself being the subject of uncertainty. More so when it comes to the aspects of risks. There is hardly any industry i.e. manufacturing activity or service organization that does not come within the scope of General Insurance.
Risk is inherent aspect of human life V Whether individual or organization. Without risks there cannot be progress. Risk is adverse deviation from a desired outcome. Occurrence of uncertainty cannot be predicted. Everything is translated ultimately in terms of money. So uncertainties of life both individual and organizational are ultimately reduces in terms of financial losses one has to encounter. Finance is easiest way to measure the loss. Insurance is one certain way of dealing with uncertainties. Risk arises out of uncertainty. Risk is defined as The possibility of adverse results flowing from any occurrence. Risk also represents the possibility of an outcome being different from the expected. The risk exists where there are at least two possible outcomes.
Risk means fear of loss, destruction, and damage. When an event has to take place, it has probability of occurrence between zero and one i.e. it may take place or may not happen at all. The degree of risk may or may not be measurable. Risk is a pervasive force in the world.
Motor car Insurance quote and procedures in India:
Motor Insurance is classified into three categories based on the type of Motor Vehicle:
1) Private Vehicles such as car
2) Two Wheelers such as scooter or motorbikes and
3) Commercial Vehicles. As per Motor Vehicle (M.V.) Act 1939, first two category vehicles can be personal properties and liabilities out of use of these vehicles are legal liabilities. Motor Vehicles Act clearly specifies the need of insurance for the vehicles so as to drive them on road through the following Acts:
* Section 146: Necessity for insurance against third party risks:
No Person shall use, except as a passenger or cause or allow any other person to use, a motor vehicle in a public place unless there is in force a policy of insurance complying with the requirements of the provisions of the Act. Also, in the case of a motor vehicle carrying or meant to carry dangerous or hazardous goods (as defined in the Environmental Protection Act) there shall be policy of insurance under the Public Liability Act 1991.
* Section 196: Driving under vehicle:
Whoever drives a motor vehicle or causes or allows a motor vehicle to be driven in contravention of the provisions of Section 146, shall be punishable with imprisonment which may extend to three months, or with fine which may extend to Rs 1000 or both
The type of Policy:
* Liability only Policy or Third Party Liability Policy or Act only through insurance covers.
* Package Policy or Comprehensive Insurance Policy.
Third Party Insurance: Third part car insurance qotes is most important policy under MV Insurance because one should possess valid Act Policy to use a motor vehicle in a public place, as it is compulsory by the provisions of Motor Vehicle Act 1988. Third party is defined as the person other than parties of the insurance contract. Third party insurance covers the following:
* Liability to death or injury to third parties.
* Liability to employees connected with operation of vehicle
* Personal Accident cover for Owner driver.
Comprehensive Insurance Policy: If the vehicle is purchased under Hire Purchase Scheme then financiers insist upon this insurance policy. This type of cover covers all the risks involved in the Motor Vehicle Act other than the loss or damage caused to the vehicle under the following: Accident
Fire, explosions etc
Burglary house breaking etc
Riots & Strikes
Natural disaster like earthquake or floods or storm
Transit by rail/road.
Private Car Insurance: This type of car insurance qotes is only for the Owners of vehicles used for social, domestic, pleasure and or professional purposes but not used to carry goods.
Risks covered through this package:
* Private Car Comprehensive Policy covers following risks:
* Loss or damage by accident, fire, lightning, self-ignition, external explosion, burglary, housebreaking or theft.
* Riot and strike; terrorism;
* Natural disasters like earthquake, flood, cyclone etc.
* Whilst in transit in rail or road.
* Liability for third party injury/death, third party property and liability to paid driver
* On payment of appropriate additional premium, loss/damage to electrical/electronic accessories, PA cover for drivers, insured or any named person or unnamed person can be taken.
* Certain discounts in premia available by restricting the insurance cover.
Scope covered through this policy:
Actual amount spent for repairs/replacement subject to deduction of depreciation and limited to the sum insured.
* Garaging and towing charges
* On damage to tyres 50% of cost of replacement of tyres
* In case of total loss IDV (Insured Declared Value) is the limit.
* Death or bodily injury to third party.
* Death or injury to any person carried in the car provided they are not insured employees and not carried for hire or reward.
* Third party property damage
* All legal costs and expenses incurred with companys written consent.
Exclusions under this policy:
* Consequential loss; depreciation; wear and tear; mechanical and electrical breakdown
* When vehicle is used outside the geographical area
* When used contrary to limitation as to use
* Driven by a person other than driver stated in drivers clause
* Driven under the influence of intoxications
* War perils.
Steps to be followed for lodging a claim after the vehicle meets with accident in India:
Automobile Insurance plays an important role in protecting vehicle owners from serious financial losses that result from an accident.
Following steps need to follow while filling an insurance claim:
* Stop and get help for the injured.
* Call the police and notify the nearest police station
* Record the details of cause of accident
* Register FIR
* Provide the police with vital information they need
* Take steps to protect your vehicle from further damage
* Insurance Company will inspect and assess the damage before repair work can be done
* Intimation to Insurance company regarding the loss to be provided
* Insurance company should be provided with details of accident along with a copy of FIR
* Claim Form to be submitted along with estimate of repairs
* Details of driver driving the vehicle along with his Driving License to be provided
* RC book, policy documents t be submitted for verification etc
Once these actions are taken insurance company would depute Surveyor, who will assess the repair cost breaking into cost of parts, labor cost etc. In case of replacement of parts depreciation for wear & tear of parts as per age will be charged. In case of total loss of vehicle due to accident or due to theft the insurance company may pay sum insured or market value of vehicle on getting survey report.
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