What is the purpose of third party cover for your vehicle?

Third party insurance is the minimum level of cover required by person according to Indian traffic law to cover up the third party damage expenses including health and life at times. Putting third party cover in place mean, in the event you cause damage to someone else’s property or injure them while driving, that person will receive appropriate compensation. This insurance also covers for your passengers, in case you cause any injury to them in the event of accident. However, anything that happens to your vehicle or injuries to you will not be covered by third party insurance.

Advantage

Traditionally, third party cover has been the cheapest and minimal option for anyone who is looking to insure their vehicle within the budget. But it’s better to research different forms of cover using insurance comparison tool that takes your personal circumstances into consideration.

But usually markets are updated and revised often on insurance segment. This means you may well find that third party cover doesn't represent the best value for your money, either because a fully comprehensive policy is cheaper, or you can get better quality cover for a similar price.

Secondly, it is advisable when your vehicle isn’t worth a lot of money, third party cover will be the right option for you. However, it is also important to be aware that third party insurance will not provide entire level of protection that a comprehensive insurance policy would offer.

Third party, fire and theft cover provide the same level of protection as third party cover, but additionally they also cover you in the event that your vehicle was stolen or damaged by fire.

While taking a third party cover it really depends a lot on your profile, but always make sure if you want to get quotes for Third Party do consider a comprehensive cover as well. It is always good to compare and because you might come to know that Third Party cover might not be the cheapest even though they have the least cover.

Online insurance sites are great place to get competitive quote on vehicle coverage. Online quotes help you get the most competitive quotation for you and do look at the policy wordings before you decide what suit you best. Last by not the least it is better to do check with your insurance agent if there is any cashback when you cancel the policy. Always check your policy, so you know exactly what you are and aren't covered for in the event of a claim.

For claims it is advisable you should file a third party insurance claim when you believe the other driver caused the accident. The claim involves the insurance company of the other driver in the accident, so you must contact that insurer with details about the accident, identification of the policyholder, a copy of the police report citing the other driver or eyewitnesses who can confirm your report. If things are proven right that their customer has caused the accident the company will pay for your accident expenses. 

Insurance

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Insurance – An Introduction

The Insurance business is broadly divided into two major categories first is Life Insurance and other one is General Insurance. The Life Insurance covers the loss to Human Life whereas the General Insurance is primarily a Non-Life Insurance, which covers risk associated with various things/affairs one found precious enough to be covered under an Insurance.

It is true that the Human Life is most precious asset one can protect but at the same time it is also an undisputed fact that with the passing time several other assets took place in human life which are inevitably part of our day to day life. Human beings have now become materialistic and hence the value of a Human Being also derived from the material assets he possess. This may include your house, vehicles, shops and daily used utensils and equipment etc.

All the assets you possess are open to various risks and it is always a possibility that these assets can be destroyed or may be harmed in a manner whereby its value get decreased by damage caused by any uncertain/unforeseen event. As the Human Life can be shortened by deceases or accidents, similarly or assets/property can be destroyed by natural calamities or any man-made act.

Many a times these kind of activities do not occur for longer period of time, may be for decades, but the fact always remains the same that we are exposed to the risk of happening of any uncertain/unforeseen event.

Although, its true, no one can see his/her future but at the same time it is also true that we can predict the future events in a reasonable manner and therefore we always try to avoid certain activities which may lead us to losses and wherever we are unable to avoid some kind of acts we try to protect ourselves from those events.

Like for earthquakes we build houses strong enough to be unaffected from earthquake up to a certain limit. But what if the earthquake occurs with huge intensity that a whole city get destroyed in minutes. Fortunately these events do not occur frequently but the fact again remains the same that we are unable to avoid certain kind of losses that may occur any time in future.

Simplified Concept of Insurance

To cover up the damage occurred due to any foreseen or unforeseen event and mitigate the losses the mankind evolved a wonderful concept of Insurance. Since the occurrence of loss causing events are few in numbers the mechanism of Insurance ensures that the losses to be shared by all members of a certain group which is exposed to similar risk of occurrence of such loss causing event.

This mechanism runs over a simple concept of society where we come together to form a group and this grouping make us feel protected and similarly while having the insurance all the risk bearers ensure that any loss occurring in future shall be borne by whole group despite of the fact that actual loss occurred to a very few members in that group.

So in this manner, Insurance is a mechanism which ensures that the unfortunate some, who suffered loss due to a certain event, get compensated and their loss be mitigated by large number of contributors who are exposed to similar kind of loss causing event,

[Source: https://generalinsurancesite.wordpress.com/2016/03/02/insurance-an-introduction/]

Why should you buy peace of mind for your vehicle?

Imagine you’re driving a vehicle and get into an unintentional accident. There is a property and car damage including some bruises to the opposite party driver.  As long as it’s not your fault things will be fine but if it’s your fault you will have to face huge financial brunt to cover up the damage. One thing that can offer a financial back up is insuring your vehicle with third party insurance. Therefore, third party motor insurance is the most fundamental form of coverage set by Indian Tariff Law to get your vehicles running on roads. It is the most economical coverage option you can get.

The article discusses few things you should know about third party motor cover before buy it.

It is the kind of cover under which insurance company will agree to compensate or pay for the damages done by the insured person, if he or she is sued or held legally liable for  injuries and damages done to a third party. So, if you bump your car with another car and the accident turns out to be your fault then you’re liable to pay losses such as physical and health damages. However, you cannot claim damage to your own car or health. For this a separate policy known as comprehensive vehicle policy is available in market that will manage things for both the ends.

If you meet with unfortunate incidence and it happens to be other person’s fault then this is how you can make third party insurance claim. A victim, owner of the property, or the legal envoy of the deceased person can make an application for a third-party claim against the vehicle owner. To file a third party claim, an FIR must be filed with the police. 

The FIR would generally include Registration number of the vehicle involved in case of an accident, License number of the driver, Name and contact details of witnesses, if any.  The claimant need to file a case with the Motor Accident Claims Tribunal under the jurisdiction of the area where the petitioner resides or the accident occurred. Documents required would include a copy of the FIR and the original records of expenses incurred by the applicant to authenticate the damages or loss. 

General Insurance

General Insurance

Two-Wheeler Insurance Policies To Get Cheaper, Easier To Buy

Comprehensive two-wheeler insurance policies would soon get cheaper once policies with three-year validity come into effect. Large insurance companies General Insurance, apart from government-owned companies, are planning to launch policies with riders for customers.

To enable long-term motor insurance for two-wheelers, the Insurance Regulatory and Development Authority (Irda) has introduced a long-term motor third-party insurance policy for two-wheelers with a three-year term.

Irda said the total premium charged for the third-party coverage would be three times the annual third-party premium for two-wheelers as decided by the regulator. Motor third-party premium is regulated by Irda and the regulator brings out revised rates for these policies every year based on the claims experience. Third-party motor insurance is mandatory in India.

The insurance regulator also said that the premium would not be revised upwards or downwards during the period of the policy. According to insurance industry executives, two-wheeler owners would opt for these, since there would not be any premium fluctuations for the three-year term unlike one-year policies where the premium would be revised every year.

Sector officials said the firms would save costs by not having to renew policies every year. This, they said, would be passed on to customers in the form of discounts on the ‘own damage’ front. Customers would also get an option to stay with their one-year policy or opt for a three-year policy.

Third-party motor insurance includes two parts, own damage that protects the driver/owner from accidents and third-party cover that covers liability from third-party accidents. Third-party cover is mandatory, while own damage is optional.

General Insurance companies have already planned to launch products. General Insurance companies said his company would file a product in tandem with the Irda guidelines.

He added add-ons could be offered with the policies, subject to Irda approvals.

“With respect to the pricing of the product, we are analysing the past trends for a suitable pricing mechanism.”

From April 1, 2014, third-party premiums in the two-wheeler category were raised by 9-10 per cent, compared with the proposed 1-45 per cent across segments – sub-75cc, 75-150cc, 150-350cc, and more than 350cc.

had earlier said the insurer would launch a motor third-party policy for two-wheelers after filing the product with Irda. Thereafter, the company would file a comprehensive two-wheeler plan, he added.

Irda also said that the entire premium would have to be paid in one instalment and insurers would not be able to cancel the standalone third-party cover in any circumstances except for ‘total loss’. In case of cancellation of policy under total loss, premiums for the full unexpired years would be refunded. Non-life companies wanting to introduce these policies will have to submit a letter of intent to Irda.

According to the regulator, since there is also a need to have long-term comprehensive cover including own damage and third-party covers, insurers can also file three-year term comprehensive policy for two-wheelers. While the ‘own-damage’ motor segment covers losses to self during accidents, motor third-party covers liability to a third-party caused by a vehicle owner during an accident.

[Source:http://insuranceblog.asia/two-wheeler-insurance-policies-to-get-cheaper-easier-to-buy/]

7 ways to make the best use of a dual Income!

After you get married, you not only share life with your spouse but your income and expenses too! The biggest challenge that most young earning couples face is to manage their finances. Here are some of the best post-nuptial financial planning tips that every couple should consider using.

It is essential to have a short term, medium and long term financial plans that can be used as a yardstick for measuring your financial success. It also keeps a tab of the road map you have set for achieving your joint goals. These goals may be further categorized into needs and wants to mark their importance.

1. Debt Free Living: The main issue that most young couples deal with is debt. Whether it is a credit card, personal loan, home loan, education or the car loan, the first priority should be to pay it off. Paying off the debt earlier than scheduled relieves you of mental anxiety, can save you on hefty interest that you pay to the financier over a period and also makes you cash rich. As per RBI’s instructions, banks are not charging pre-payment penalty on floating rate home loans. This gives freedom to the borrower to prepay their loans.

Let’s look into a scenario wherein you have availed multiple loans like home loan, car loan, credit card loan etc. In this situation, we suggest you an action plan to on how to pay down your debt:

Let’s look into a scenario wherein you have availed multiple loans like home loan, car loan, credit card loan etc. In this situation, we suggest you an action plan to on how to pay down your debt:

a) Make a Budget: The budgeting has to be proper and more importantly, realistic. The surplus has to be saved or invested towards your goals. Ideally, try to be slightly strict with yourself. Among your expenses, you must be prepared to make viable cuts that you can stick with in order to make a difference to the overall state of your finances.

b) Choose which debt to pay first: Debt management experts advise paying off the loans with higher interest rate first. This is called the debt ladder or the ladder method of debt repayment.

Third Party insurance: Since you have worked hard to build a solid financial footing for you and your family, you want to be sure that everything is protected. Accidents and disasters can and do happen, and if you are not adequately insured, it could ruin you financially. You need insurance to protect your life, your ability to earn income, and to keep a roof over your head. It offers peace of mind, security and a safety net. Having insurance policies in place is extremely important for every couple. Here are some that you should consider investing in:

The other option allows you to pay down debt starting with the smaller principal balances, which will quickly free up money to put toward other loans with larger principal balances. This is called the reverse ladder or the snowball method, because you build momentum and confidence as you pay down debt.

Review your finances thoroughly, crunch the numbers, and see which method would be the most effective for your situation. The rule of thumb is, you must prepay something each month to get rid of the debt as soon as possible.

[Source: https://blog.bankbazaar.com/7-ways-to-make-the-best-use-of-a-dual-income/]

Let’s go to shop your car insurance policy?

With more and more car insurance providers offering online quotes and sign-ups, switching policies is now easier than ever before. With the advent of internet people can now buy car insurance in a quick and a hassle free way from the place of their choice and at the convenience of their time. However, with multiple options available for car insurance in India, buying the right insurance policy is no less than a challenge now. Therefore, before purchasing a motor insurance, it is very important to do a significant amount of research. Nevertheless, even to carry out such a research you should know what things you need to look for. The article will guide you through some things to be considered while shopping for your car policy: 

Hidden Discounts

Often pooling your car, paying your insurance bill annually, automatic bill pay etc. can provide you with significant savings. Many companies offer substantial discounts for drivers who complete a defensive driving course, or who can show proof that they've taken a course through another provider or the workplace recently. The best ways to learn about potential discounts are to check the company's website or ask an insurance agent.

Multi-policies

Most insurance providers offer discounts to customers who buy more than one policy from them. Keeping one payment billing, a combined deductible and one person to answer all insurance questions will just seem to make your car insurance procedure simpler and sorted out.

Match Services

Before switching insurance providers, contact your current insurer for a policy review, and explain that you're considering moving elsewhere for a policy with lower premiums. Sometimes an agent offers a better rate almost immediately to retain its valued customer, especially if they know you’re about to walk. But a policy is more than just its premiums. They offer discounted rates for recurring customers or may be loyalty perks. If an agent can't match premiums, they might be able to add features to the existing policy.

When to Change

Some insurers charge a fee for breaking a policy mid-term. So, unless the savings from the new policy are significant to move on, it's best to wait until several weeks before your policy is up for review and renewal. If you decide to switch, allow enough time for the new policy to take effect, and then cancel the existing policy before its automatic renewal.

Policy awareness

To avoid having to switch again in six months or a year, customers should ask their new provider, either in person, via an online chat, or over the phone, to go through the policy structure step by step. Learn now the terms and conditions carefully else we are sure you don't want to learn after an accident that something you thought was covered isn't.

After accident services

It's easy to view car insurance as simply a line item on a budget until you need to collect. How quickly and how well the car is repaired, the deductibles after an accident are important factors to consider before buying any insurance policy.

Well, technically speak it’s impossible to truly gauge the value of any insurance product until making a claim on it. Only then will those discounted premiums will prove to have been either an excellent investment or just avoidable mistakes.

Source: https://insurancegeneralindia.wordpress.com/2015/07/30/lets-go-to-shop-your-car-insurance-policy/

Car insurance comparison is an effective practice

Car Insurance is a mandatory product and since it is to be renewed every year, it becomes all the more important for you to get the best insurance rates suitable for your car. When it comes to comparing car insurance quotes, shopping around is important as car insurance premiums and policies may vary significantly from one car insurance policy to another. Therefore, it is advisable that you should have fair amount of comparison on policy structure, charges incurred, discount offers, benefits etc. before coming to a consensus on buying particular car insurance. With so many companies to choose from, doing a check for all the car insurance policies can be quite a task. Nowadays with online car insurance comparison process it has become simple to get some of the good deals. All you need to do is input your car details and based on them comes an array of insurance comparison being displayed for you.

The articles will give you some tips for car insurance comparison while choosing the best deals for your car.

Premiums

Differences in premiums between various insurers offering car insurance can often vary depending on your circumstances, so taking the time to do a car insurance comparison can potentially save you money. There are a number of ways to compare quotes. Prior to the advent of the internet, it was a pain of digging out the phone directory and ringing around car insurance companies, collecting the information manually and sit down to do your own algorithms. Else you would also meet salespeople or insurance agent making it time-consuming process. You might also go and meet the insurance salespeople or brokers.

Online Comparison

Online comparison has made the process of getting insurance quotes much easier and quicker now than it used to be. These days, using online medium getting a no obligation and pressure free car insurance comparison is much simple and it’s also a very viable way of going about it.

These online tools enable motorists to compare car insurance quotes from leading insurance brands. All you have to do is fill out a simple online form including standard details such as the make and model of the car, your license details and some more as requisite like whether it is garaged and the minimum age of those likely to drive it and hit the 'submit' button to get whole lot of information on best insurance quotes within couple of minutes.

Discounts

When you compare insurance quotes, you will notice that certain risk factors may increase your rates, but other factors such as a safe car, a clean driving record, customer loyalty, lifestyle choices and payment preferences may entitle you to discounts.

Claim Settlement

This is another crucial step you need to monitor while having car insurance comparison. While checking the quotes carefully, understand the claim settlement process for various companies, in case of accidents. Go for the policies that offer online claim settlement in case of damage to the vehicle. Also check for the availability of the repairing and servicing centers made available by the insurer.

5 Steps to get a Better Car Insurance Comparison Deal

Generally, two in five of car insurance policyholders think about changing a policy or an insurance service provider when policy renewal time arrives. You can easily save some handsome amount of money only if you compare online motor insurance quotes. Below are few simple steps to get a better deal on vehicle insurance online:

·         Look for the Best Cover, Not for the Low Cost

While comparing online quotes, people should be clear in mind that you are searching for the best plan and not just looking for the least expensive policy. Online comparison is the best way to get the best rate for the right plan that meets your needs. It shows which insurance products include extras. But, opt for the policy that gives high level of protection which you actually require.

·         Never Increase the Excess

Growing your excess may make a car insurance policy affordable, but it can be risky. Hence, do not increase the excess to an amount insured would struggle to pay in the future.

·         Check Around Other Insurance Companies in India

As not all insurance companies in India list their names on quotes comparison websites, so customers won’t be able to compare their products in single go. It can be worth getting a car insurance comparison quote from their website directly.

·         Add Someone to the Plan

Including an additional driver especially a more experienced one to your vehicle insurance policy can surely bring the coverage cost down. But, do not mention him as the main driving person in a plan.

·         Stay Away From Assumptions, Be Sure!

When a person is comparing online car insurance quotes offered by different insurance companies in India, he or she will definitely make some assumptions. But, it’s totally depending on you to make sure these assumptions are right. Carefully read the policy document so that you’re very much clear on what assumptions have been made.

Source: https://insurancegeneralindia.wordpress.com/2015/07/24/5-steps-to-get-a-better-car-insurance-comparison-deal/

Create an Instant Compare Car Insurance Checklist

Purchasing car insurance is quick and easy process. Before you select any insurance coverage, though, you require a checklist. Many people prepare a checklist for everything, from grocery shopping to ensuring all the bills are paid at the end of the month.

These lists are easy to prepare, because they know what to search for as they begin writing. But, buying an online car insurance is a quite different and hence, customers should have to get some idea what to mention on your checklist.
Below is an instant vehicle insurance checklist:

Does the insurer offer a better deal for a good credit score?
Does an insurance company in India give any special deals for good driving records?
Is insurer comes into play as a ‘direct provider’ or will company pass their customers off to any local agents or brokers? Because in such cases investing your precious time as you may have to begin the detail procedure against with a broker or agent. So better ensure about the insurance service provider.
Do you have any idea about states insurance coverage needs?
Review your current policy documents and check what your coverage is. In case, children are financially independent, then you may not require some deductibles you had.
Does a customer hold multiple vehicles and what kind of deals would be available in the market? This is a very important point for motor insurance checklist.
Those who recently buy a new vehicle must get an instant compare car insurance and take a car insurance to comply with law and in case of accident.
In case customer holds a business and own a commercial vehicle insurance plan, would there be any better deal for bringing your private vehicle insurance to the new insurer?
There are various questions like this to consider while purchasing insurance online. Instant insurance is convenient, but don’t get too big or too small coverage in a hurry. Prepare that checklist before you start searching for the best policy!

Source: https://insurancegeneralindia.wordpress.com/2015/07/22/create-an-instant-compare-car-insurance-checklist/

7 Point Check List while Buying Car Insurance

When you decide to buy a vehicle, the decision will always be special. So, do this task with proper planning because it also needs your hard-earned money. Prepare a excel sheet, comparing mileage, features, color details available in the list of models person is planning to buy and the works. The obsession level may be high, but care a lot while finalizing a deal. Majority of people have a tendency that they pay maximum attention in zeroing in on the vehicle, but they never pay much focus towards the car insurance policy India.

In fact, when it comes to policy renewal, probably the case is same. Insurance professionals suggest vehicle owners to pay enough attention while selecting the best car insurance plan online.

Do not forget that choosing the right policy is very much important because it will help policyholders to secure their expensive purchase, a car without burning a big hole in your pocket. Below are 7 tips which will help buyers to make the correct decision about their online car insurance:

·         Every insurer differently rates each brand of vehicles based on customers’ statistical analyses, claim history etc. Insurance companies in India update these ratings frequently; hence online comparison of similar products from various insurers is essential to get a better rate. But, ‘price’ is not the only factor customers should be looking for while selecting auto insurance coverage.

·         Today, comparing and purchasing vehicle insurance policies become easier, faster and affordable. Buyers can get the policy issued immediately and can access it at one place.

·         It is advisable to select an insurer which has a wide network of garages and offers cashless claims. It is the most convenient way for policyholders.

·         Choose an insurer that has best claim settlement ratio as well as easy claim procedures. Just go online and then do a quick search about preferred insurance companies in India.

·         Do not forget to select the correct add-ons for your vehicle as it helps to offer sufficient coverage for insured vehicle based on your individual requirements. Zero depreciation cover and no claim bonus protection are some of the most popular add-ons available on online car insurance policies India.

·         Understand all the inclusions and exclusions related to the plan, so insured will not be surprise at the time claims.

·         The best insurance service provider is the one that helps customers to find the best policy, give timely renewal reminders and guide through claim settlement processes.

Source: https://insurancegeneralindia.wordpress.com/2015/07/14/7-point-check-list-while-buying-car-insurance/