Prasad Patil
If you are thinking of buying a motor, it is necessary to insure it. Apart from this, it is also mandatory to renew the insurance policy before it lapses. If you are constantly claiming for small amounts, you may face problems in the future.
Just as we insure a person's health, so also insures a car. If the car is damaged in an accident or if you cause any damage to the other person's car, then this insurance covers the same. Also, if no claim is made during the year, the policyholder also gets a 'No Claim Bonus'. It grows every year. However, the only condition is that the claim should not have been made. However, if you keep making claims for small amounts, you may face problems in the future.
Why not claim for a small amount?
There are three things to keep in mind while insuring a car. Additional deductions at point of claim, benefit of no claim bonus and number of claims lodged during the policy period. A mandatory deductible applies to every claim made to the insurance company and has to be followed as per 'IRDA' rules. This deductible amount can be different for different vehicles and it can be between 1000 to 2000 for private cars. Also, if you make a claim during the policy period, the 'No Claim Bonus' becomes nil and the discount on future renewals ceases. At the time of renewal the insurance company also checks the number of claims made during the previous policy period and as a result the renewal premium may be higher. Therefore, considering these three conditions, one should avoid making a claim for the marginal cost of repairs.
If the cost is less than 25 thousand then no claim?
If you are availing No Claim Bonus in case of no claim, you should avoid claims for low value expenses. E.g. If the claim amount is Rs.6000 and you don't claim, you get a no claim bonus of Rs.3500 on renewal. If you make a claim, a deduction is made by the company and it is up to two thousand rupees. If you are getting no claim bonus of Rs 3500 and you don't claim, it will be availed. Because we keep the No Claim Bonus safe. If you claim, you will not get the benefit of No Claim Bonus next year. Accordingly, your new installment will also increase.
If the insurance company port
Even if the car is insured by a new insurance company, the company assesses the risk at an individual level. It also determines the premium based on claim experience and the number of claims received from the previous insurance company. Therefore, even if the company is ported, the installment does not remain low. Any company while renewing the insurance takes the old policy as a basis.
Benefit of No Claim Bonus
If you have not made any claim in the previous year, the no claim bonus will be 20 percent. It increases to 25 percent in the second year, 35 percent in the third year, 45 percent in the fourth year and 50 percent in the fifth year. If no claim has been made for five consecutive years, a maximum no claim bonus of 50 percent is available. Looking at the past claim status, the insurance company automatically provides 'No Claim Bonus' to the policyholder.
If the motor is old..?
Whether the car is new or old, the insurance company considers the IDV and the claim while underwriting. According to this, the insurance amount is taken from the vehicle owner. If the car is totally destroyed in an accident or stolen, then IDV is considered. If the claim is made in the form of total loss or theft, the IDV amount is paid. IDV is the amount of the vehicle fixed by the insurance company. It decreases every year. IDV is lower than purchase value.
How many claims in a year?
Insurance companies in India have not fixed the maximum number of claims in a year under motor insurance. No limit is prescribed for the number of claims under the basic policy. However, the number of claims to get the benefit of zero depreciation may vary from insurance company to insurance company. One time claim is considered as per base plan and add on.
