When it comes to car insurance, most of us tend to overlook the details that can have a large impact on the policy in the long run. However, to ensure a swift claim settlement process and a good customer service, given below are few points to read on in your car’s policy document.
What is a Car Insurance Policy Document?
A car insurance policy document is a legal contract between the policyholder and the insurance company. The document mentions all the details related to the coverage offered i.e. premium calculation, policy tenure, exclusions, etc. To ensure a swift experience at the time of claim, knowing what the insurance company covers is important as not doing so can lead to a problem in the future.
Given below are the important things to check on in your Car Insurance Policy Document
Terms and Conditions
The terms and conditions of the policy are important and it is the first thing you need to check on. For instance, at the time of claim, you need to pay deductible which is the amount you need to pay out of your pocket. Having a good understanding of the terms and conditions are important.
Coverage Offered
There are three types of car insurance i.e. third party, comprehensive and standalone. Each of the car insurance type offers specific coverage
Third Party Car Insurance
Third Party Insurance covers damages, death or disability caused to third party
Own Damage Car Insurance
Standalone Own Damage Insurance provides coverage to the damages caused to your own car due to natural, man made calamities or even theft.
Comprehensive Policy
Comprehensive Insurance provides coverage to the damages caused to your own car as well as that of the third party.
Exclusions
Read on the exclusions section to understand the coverage offered under the policy. Generally, most car insurance companies in India do not cover contributory negligence, driving under influence of alcohol, disobeying traffic rules, mechanical breakdown, normal wear and tear, driving outside geographical limits, etc.
Check on the Car’s IDV
Your car’s insured declared value is its existing market value; it is the amount the insurance company will pay in case of theft or total loss of the vehicle. It is important to check on the insured declared value as it will have an impact on the premium you pay. Higher the IDV, higher the premium and vice versa.
Note the Claim Process
Ensure that you know the claims process of the insurer so that you don’t have to spend your time going through the policy documents. Know about the number of cashless garages where you can avail cashless repair service.
Personal and Vehicle Details
When you get your car insurance policy document, it is imperative to check on the personal and vehicle details. Ensure that your personal details such as your contact information, your name, etc. are correct. Also, check if your vehicle details i.e. make and model, registration number, etc. are correct.