Due to a lack of information on particular words specified in the car insurance policy document, most car owners buy a car insurance policy based on its coverage and premium but do not grasp its terms and conditions. As a result, using the policy becomes more difficult. As a result, before acquiring a vehicle insurance plan, it is advisable to familiarise yourself with the most prevalent car insurance dictionary words. To help you make an informed decision, let's look at some of the most common phrases related to vehicle insurance.
Terms Commonly Used
Among
the often used terms are:
·
Covers with Add-ons
Additional
insurance coverage, known as add-ons or riders, can be purchased in addition to
a Comprehensive Plan. These plans are not available as a standalone cover or in
combination with a Third-Party Plan. Coverage or service-related add-on covers
are also possible. A Zero Depreciation Add-on, for example, is more of a
coverage-enhancing add-on, whereas a Roadside Assistance Add-on is a
service-related add-on. In your Comprehensive Car Insurance policy, you can
choose one or more add-ons. Please keep in mind that any add-on will increase
the total amount due. As a result, only add-ons that offer value should be
purchased.
·
Device Against Theft
An
anti-theft device is a piece of equipment that may be fitted in your car to
prevent theft. These gadgets can set off an alert and/or have a built-in GPS
that allows them to be tracked. Consider installing anti-theft gadgets that
have been approved by India's Automotive Research Association (ARAI).
Installing such systems improves the safety of your car and reduces the
likelihood of theft. The insurer's risk of insuring the car decreases as the
probability of theft decreases. The payable premium might reflect this. Talk to
Customer Service about getting a discount on your car insurance if you have an
anti-theft device installed.
·
Insurance for Break-Ins
When
there is a significant gap between two insurance policies, it is referred to as
"break-in insurance." Break-in Policies are another name for this
type of policy. If you have such coverage, the insurer may want to check the
car before renewing it. The premium may rise as a result of this. To ensure
that there is no gap between plans, it is recommended that you renew the
insurance before the expiration date. Additionally, if the break is longer than
90 days, the earned No Claim Bonus may be reset to zero, resulting in a higher
premium upon renewing the policy.
·
Deductible Requirement
When
it comes to claiming settlement, you must donate a certain portion of it as
well. The Compulsory Deductible is the amount that must be deducted. This is a
pre-determined component determined by the Insurance Regulatory and Development
Authority of India based on the cubic capacity of the vehicle's engine.
·
Full Coverage
Third-party
(TP) and Own Damage (OD) coverage make up a Comprehensive Car Insurance policy.
OD + TP cover is another name for it. With this strategy, you can satisfy legal
requirements with the TP cover while also protecting your car from harm with
the OD cover. When purchasing or renewing Comprehensive Car Insurance, you also
have the option to add-on insurance to expand your coverage.
Take Away
When
researching, comparing, purchasing, renewing, or claiming vehicle insurance,
you will come across a variety of terms. This Car Insurance Glossary will
assist you in deciphering these terms so that you can make an educated
decision. It should be noted that the explanation of automobile (vehicle)
insurance terminology is simplified for ease of comprehension and is not
intended to be taken as a legal definition.
You
may also like to read - Understand Why Car Insurance Is
Mandatory In India
Disclaimer: This article is issued in the
general public interest and meant for general information purposes only.
Readers are advised not to rely on the contents of the article as conclusive in
nature and should research further or consult an expert in this regard.
Comments
Post a Comment