DRIVING YOUR VEHICLE ON THE RIGHT MOTOR INSURANCE

One of the good things about the privatisation in insurance sector is that there is plenty of competition and, hence, a wider choice for consumers.

As you would have noticed, this has also helped expand the market for motor insurance Still, many vehicle owners tend to ignore the issue despite motor insurance being an integral part of vehicle management. In fact, vehicle owners are not even aware of their policy details and get into trouble at the time of claims.

What car or two-wheeler owners need to know are the types of a vehicle policy so that they can choose the one they think is best suited for their vehicle:

Comprehensive policy
A comprehensive policy takes care of all damages to the vehicle, right from theft to small dents. Such a policy would protect the vehicle owner from different types of damages, like the ones from rains or floods.

Because of its broad nature, a comprehensive policy is also more expensive but - financially - this would be more prudent than a mere third-party insurance policy.

Third-party policy
As the name suggests, a third-party insurance policy only covers the damages resulting out of the actions of a third party. As a result, the policy is much cheaper but is not full-proof. A classic case is the growing traffic problems in major cities of India where it has become difficult for vehicle owners not to have dents in their vehicles.

Accident policies
In recent times, there has been a growing popularity for accident insurance policies.
This can be an additional option for vehicle owners as none of the existing motor policies ensure protection from the inevitable loss of salary income that arises out of an accident.

A personal accident cover can take care of medical expenses arising out of a mishap which, in turn, reduces the cash outflow for the policy-holder in the event of an accident. In combination with other motor policies, this can provide better risk protection for vehicle owners.

Do remember that one also needs to follow certain guidelines for a motor insurance. The pre-requisite is the discipline needed in respect to premium payments.

Unlike other insurance products - such as life or health policies - a motor insurance does not allow the luxury of grace period for premium payment and, hence, one needs to keep in mind the due date for premium payments.

Source: Srikala Bhashyam
Mumbai Mirror