Liability insurance pays for damage to someone else’s property or for injury to other persons resulting from an accident for which the insured is judged legally liable; collision insurance pays for damage to the insured car if it collides with another vehicle or object; comprehensive insurance pays for damage to the insured car resulting from fire or theft or many other causes; medical-payment insurance covers medical treatment for the policyholder and his passengers.
If a LPG or CNG kit is installed in your automobile, you must inform the Road Transport Authority’s office, from where the automobile was registered so that they can modify the necessary changes in the registration certificate of the automobile. The insurance provider should be informed as well so that it can provide the coverage to the kit on the payment of additional premium as per the kit’s value under Own Damage Section.
The deductible is the amount of which the claim would be payable. Generally, a normal standard or compulsory deductible for most of the automobiles that range from Rupees 50 for the two-wheeler automobile to Rupees 500 for private four-wheelers and commercial automobiles that enhance according to the carrying capacity or cubic capacity of the automobile. Though, there could be cases where the insurance provider might enforce extra deductible which depends on the vehicle’s age or if the claims frequency is comparatively higher.
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.