This cover is mandatory in India under the Motor Vehicles Act, 1988. This cover cannot be used for personal damages. This is offered at low premiums and allows for third party claims under “no fault liability. The premium is calculated through the rates provided by the Tariff Advisory Committee. This is branch of the IRDA (Insurance Regulatory and Development Authority of India). It covers bodily injury/accidental death and property damage.
You might have a roommate or family member on your policy that no longer drives your vehicles. Or maybe you have a vehicle on your policy that is no longer being driven. Making sure driver and vehicle information is up to date may save you money. Keep in mind, if you do go down to just one car on your policy, you will lose the multi-vehicle discount.
Apart from the NCB, there are a few discounts available as per Own Damage Premium for having a membership of the Automobile Association of India, Vintage Cars- private cars that are certified by the Vintage and Classic Car Club of India, installment of any anti-theft equipment that is approved by the Automobile Research Association of India (ARAI), Pune and its installation is acknowledged by AAI. There are concessions offered specifically for especially modified or designed automobiles for the visually challenged, physically challenged or mentally challenged individuals that are aptly certified in the Registration Certificate by the concerned RTA. When you select additional voluntary deductible, your insurance provider offers you attractive discounts.
Yes, motor insurance is transferable to the purchaser of the automobile. All you have to do is inform in writing about the transfer to its insurance provider. The original owner of the car needs to fill out a new proposal form. A nominal fee is charged for the insurance transfer along with the recovery of No Claim Bonus from the transfer date till policy expires on a pro-rata basis.
Those not exempted from obtaining insurance must obtain a certificate of insurance from their insurance provider, and display a portion of this (an insurance disc) on their vehicles' windscreen (if fitted). The certificate in full must be presented to a police station within ten days if requested by an officer. Proof of having insurance or an exemption must also be provided to pay for the motor tax.
Driving without the necessary insurance for that vehicle is an offence that can be prosecuted by the police and fines range from 841 to 3,287 euros. Police forces also have the power to seize a vehicle that does not have the necessary insurance in place, until the owner of the vehicle pays a fine and signs a new insurance policy. The same provision is applied when the vehicle is standing on a public road.
Teenage drivers who have no driving record will have higher car insurance premiums. However, young drivers are often offered discounts if they undertake further driver training on recognized courses, such as the Pass Plus scheme in the UK. In the US many insurers offer a good-grade discount to students with a good academic record and resident-student discounts to those who live away from home. Generally insurance premiums tend to become lower at the age of 25. Some insurance companies offer "stand alone" car insurance policies specifically for teenagers with lower premiums. By placing restrictions on teenagers' driving (forbidding driving after dark, or giving rides to other teens, for example), these companies effectively reduce their risk.
Senior drivers are often eligible for retirement discounts, reflecting the lower average miles driven by this age group. However, rates may increase for senior drivers after age 65, due to increased risk associated with much older drivers. Typically, the increased risk for drivers over 65 years of age is associated with slower reflexes, reaction times, and being more injury-prone.
Auto insurance is financial protection, and not just for the investment you made when you bought your car. After a really serious accident, bills for damage and injuries can easily reach into hundreds of thousands of dollars. If you happen to cause such a wreck, the victims could sue you. In the worst case scenario, assets such as your savings and home could be seized.