When it comes to buying cars, we spend a lot of time in researching about the latest models, colors, and features. However, most people fail to put effort when it comes to buying car insurance. Most people know only a little about car insurance which is not a good sign. Car insurance is mandatory for every car owner which makes it important to have some information about it.
Recently, the insurance news in Malaysia mentioned about the introduction of phased liberalization which is touted to have positive impact on the insurance sector, as well as offer several benefits to the consumers. Here’s a look at some information on motor insurance that you must have as a car owner:
The Concept
When it comes to car insurance, if you don’t use it, you lose it. For availing the benefits of insurance coverage, you need to pay a yearly premium. In case no accident happens during the year, you lose the premium paid for protection. Also, you get to avail the No Claim Bonus which can be 20% of the premium amount in first years and up to 50% in the sixth year.
The value of the insurance policy is based on the IDV- Insured Declared Value of your vehicle which is maximum insured amount the insurer can pay you and it approximately equals to the market value of your vehicle. When you buy insurance for a new car, the IDV is calculate based on the showroom’s listed price.
What Does Motor Insurance Coverage Include?
1. Loss or damage because of natural calamities
It covers loss because of the events which are out of your control such as earthquake, flood, hurricane, storm, cyclone, landslide, lightning, etc.
2. Loss or damage due to man-made calamities
It covers man-made disasters like burglary, terrorist activity, strike, riot, and damage cause during water, rail, or road transit.
3. Personal accident coverage
This will secure your family in the event of permanent disablement or your death during an accident. You can get coverage up to 2 lakhs for any damage caused to the driver while traveling, mounting, or dismounting from the car. Some insurance also offer optional accidental coverage for the co-passengers.
4. Third-party Legal Liability
Mandatory by law, the insurance coverage protects you against the legal liability of accidental damage which results in permanent injury or death of a third party. It also offers coverage for the damage caused to any surrounding property.
What is not covered by Motor Insurance?
- Vehicle not being used in accordance with the limitations as to use.
- If you were driving someone else’s car.
- Intentional damage to the vehicle.
- Damage caused when the vehicle owner is under the influence of drugs or alcohol.
- When someone uninsured is driving your car.
- Mechanical and electrical breakdown.
- Normal wear and tear and general aging of the vehicle.
How to Buy Car Insurance?
With selected insurers, you can shop for your car insurance and avail the claim online. Apart from the above mentioned points, one thing that you must need to keep it mind is that you must know what you are signing up for. In case of any queries, you must feel free to ask the insurer.
Explore the web for more insurance news on phased liberalization in Malaysia and its effects on motor insurance.
If you are into bikes, you should also know that you cannot take your vehicle out for a ride without having a bike insurance policy.
However, while it is only mandatory for you to have a basic third-party insurance policy, there are many policyholders out there who opt for a comprehensive insurance policy.Now, why would anyone want to pay more premium when it is not even mandatory?
Third Party Bike Insurance A third-party bike insurance policy is the basic mandatory policy you need to have which covers injury/loss/damage caused to the third party.
Benefits of a Third Party Insurance PolicyHelps you stay within the law With this policy, you are in compliance with the law stating it mandatory for bikers to have third-party insurance.
Provides third-party liability cover In case of any injuries or damaged faced by the third party, your policy will have you covered for the expenses.
Makes sure you do not get hefty fines Your third party insurance will save you from fines you would have to pay if you are caught without coverage while riding your bike.
Motor insurance in Chennai is legally compulsory.
All car-owners have to avail a motor insurance policy in Chennai with third party coverage to be eligible for driving.
Online car insurance in Chennai offers coverage against financial losses of car-owners due to various reasons.
Damages caused to insured cars are covered by comprehensive online vehicle insurance in Chennai.
Damages caused to third parties are included in the coverage by motor vehicle insurance in Chennai as well.
Car insurance companies in Chennai offer monetary compensation in case the insured vehicles get stolen.
