1. What is Car Insurance and why it is essential?Ans: Car Insurance is a protection against losses which occur due to legal claims made by a third party in case of an accident caused by you or losses which arise as a result of man made/natural calamity to you, your vehicle and co-passengers.
2. Is it a must to have car insurance in India?Ans: Yes it is mandatory under the Motor Vehicles Act 1988 to get your car insured as soon as you buy it.
3. What are the types of Car Insurance in India?Ans: There are basically two types of car insurance: ‘Third Party Insurance’ and ‘Comprehensive Insurance’. To get more info on this, contact the GIBL expert team!
4. Why do premiums vary between different insurance companies? Ans: Insurance companies work with different statistics and thus use different methods to calculate premiums. Some companies are specialized in certain areas or types; hence they are prepared to give discounts in those areas.
5. What factors determine the premium amount?Ans: a. Make and Model of the Vehicle
b. Year of Manufacturing
c. Place of Registration
d. Current Showroom price of the vehicle
The principal insurance amount and its subsequent premium also differ according to the price of the vehicle.
6. What does the Legal Liability cover for a paid driver?Ans: Legal liability covers the legal compensation that might have to be paid if a third party files any case against the driver for damage, loss, or fire.
7. Can I renew my motor policy online? Ans: Yes, provided it is renewed between the period starting two months before expiry and six days after the expiry of the previous policy.
8. What if the accident takes place in a city other than where the motor insurance policy was issued?Ans: It does not matter where the accident takes place, if your motor insurance policy is in effect; you remain insured throughout the country.
9. What are the important vehicle documents?Ans: Certificate of Insurance proves that the vehicle owner has valid car insurance. You can claim insurance only if the vehicle is registered to you i.e. you are the owner of the vehicle.
10. What car insurance doesn’t cover? Ans: Car Insurance doesn’t cover consequential loss, wears and tears, mechanical or electrical breakdown, drunken driving or vehicle driven by someone else other than the driver stated in driver’s clause.