Third Party Liability insurance is mandatory for all vehicles plying on public roads in India. This covers Liability for injuries and damages to others that you are responsible for. However, itis prudent to cover loss or damages to the vehicle by way of Comprehensive/Package policy which covers both “Liability” as well as “Own damage” to the insured vehicle. Liability Only cover is also known as Act Only cover.

Unlike life Insurance, a motor policy is usually valid for a period of one year and has to be renewed before the due date. One should pay the premium on time. No Insurer offers a grace period for paying the premium. Incase of lapse of policy by even one day, the vehicle has to be inspected. Moreover, if a comprehensive policy is allowed to lapse for more than 90 days, the accrued benefit of NCB (NoClaim Bonus) is also lost.

In accordance with directions of Supreme Court, with effect from Oct.2018, liability insurance of new vehicles should be taken for a period longer than one year.

Private cars is required to  be insured  for three years and new two wheeler vehicles should be insured for minimum five years. 

No Claim Bonus (NCB) is the benefit accrued to an insured for not making any claims during the previous policy period. As per current norms in India, it ranges from 20% on the Own Damage premium (and not on Liability premium) and progressively increases to a maximum of 50%.

If, however, a claim is lodged, the No Claim Bonus is lost in the subsequent policy   period.

NCB is given to the insured and not to the insured vehicle. Hence, on transfer of the vehicle, the insurance policy can be transferred to new owner but not the NCB. The new owner has to pay the difference on account of NCB for the balance policy period. The original owner can, however, use the NCB on a new vehicle purchased by him.

Yes, you can avail of the NCB facility if you change the insurer on renewal. You would have to produce proof of the NCB earned by way of renewal notice from the current insurer. Alternately, you can produce your original expiring policy along with a certification that you have lodged no claims on the expiring policy. For this the proof can be in the form of a renewal notice or a letter confirming the NCB entitlement from the previous insurer.

If a CNG / LPG kit is fitted in the vehicle, the (Road Transport Authority (RTA) office where the vehicle was registered, should be informed so that they make a note of the change in the registration certificate (RC) of the vehicle. The insurance company should also be informed so that the kit is covered on payment of extra premium on the value of the kit.

Yes, the insurance should be transferred to the buyer of the vehicle, provided the seller informs in writing of such transfer to the insurance company. A fresh proposal form needs to be filled in by the buyer. There is a nominal fee charged for transfer of insurance along with pro-rata recovery of NCB from the date of transfer till policy expiry. It may be noted that transfer of ownership incomprehensive/package policies has to be recorded within 14 days from date of transfer of ownership in RC failing which no claim will be payable for own damage to the vehicle.

No. Registration and insurance of the vehicle should always be in the same name. Otherwise the claim is not payable. A fresh proposal form needs to be filled in. There is a nominal fee charged for transfer of insurance.

Yes, please approach the same office, which had issued the policy, with a written request. A nominal fee is charged for issuing a duplicate policy copy.

Generally, the following documents are required to be submitted. However, all the details are mentioned in the policy itself.

Normally, duly filled in claim form, Copy of RC, Copy of driving license, Original estimate of loss, Original repair invoice and payment receipt are required to be submitted. In serious or major losses, copy of FIR is also required.   In case cashless facility is availed, only repair invoice would need to be submitted. In case of theft, originalkeys of the vehicle and non traceable certificate are also required to be submitted.

To obtain a visa for some countries, overseas travel insurance is compulsory. Even where it is not, it is prudent to obtain a travel insurance policy when you are travelling on business or holiday or for education, research etc as medical treatment costs in many countries are much higher than what they are in India.

You must check with your insurer regarding this as it would depend on the type of policy. Read your policy document and understand what it provides. Most policies, especially overseas travel insurance policies have a provision for one or even two extensions.

Normally, prior approval is required in most of the cases though there could be exceptions depending on the emergency involved. Get this aspect clarified at the time of purchasing the policy. Every insurer maintains a list of TPAs for travel within the country and list of claim settling agents for other countries for guidance and settlement of claims of travelers.

In case your travel doesn’t take off and you show proof of the same, policies would normally provide for premium refund subject to deductions towards administrative costs. Where travel iscut short, policies may or may not allow refund subject to certain conditions. You must read your document and understand whether there is such a provision and if so, how it operates.

In most cases it would be. Normally, such policies are meant for travelers who visit other countries on business or holiday or education or such other purposes and not for residing permanently abroad.

You can be rest assured, accident policies offer worldwide coverage. Your claim will be      paid even if you meet with an accident overseas.

Life insurance offers a death benefit to your nominee in case you pass away. Health insurance provides a compensation and/or reimbursement of hospitalization and other medical expenses.

A Personal Accident Insurance policy, on the other hand, insures against the financial risk that could arise due to accidental permanent total disability or accidental death of an insured person. In short, the policy is essential asit strengthens your financial portfolio securing the future of dependent family members against unforeseen events.

Accidents can happen to anyone. Motor accidents, rail accidents, natural calamities, the list is endless. These can sound scary. But, getting complacent is not the solution, being financially prepared is. Opting for a Personal Accident Insurance helps you to meet expenses in case a crisis arises.