As per the Motor Vehicles Act of 1988, it is mandatory to have a motor car insurance policy if you want to drive your car on Indian roads. There are mainly two types of motor insurance - third party policy, which is mandatory, and comprehensive policy. The third-party policy protects the driver from expenses relating to third-party liabilities, while the comprehensive policy protects the car from a variety of risks and dangers. There are many insurers out there and it can get difficult for a buyer to choose the best out of the rest. To help you out, we will look at 4 features you should look for in a motor car insurance plan and its provider.
- Wide coverage
A good motor car insurance plan should ensure coverage for your car on several fronts. Along with protection from natural calamities such as earthquakes, floods, lightning, storms, and so on, you should also look for coverage against manmade calamities such as burglary, theft, fire, accidental external damage, and so on. Also, ensure that electrical as well as non-electrical car accessories are getting coverage under the plan.
- Additional coverage via add-ons
Add-ons are extra riders along with your motor insurance policy that offers extra protection to your car. Some popular add-ons include: zero depreciation cover, which allows you to get full compensation without consideration of the depreciation amount; roadside assistance cover, which allows you to contact your insurer and get emergency help if you are stuck with a broken-down car anywhere; engine protection cover, which offers coverage to several essential parts of the engine. There are many others such as NCB cover, return to invoice, consumables cover, and so on. Make sure you choose a motor vehicle insurance plan that has the add-ons that meet your coverage needs.
- Cashless repairs facility
Cashless repairs is a facility wherein you can take your damaged car to a garage affiliated with the insurer and get it repaired without having to pay any cash. Instead of reimbursing the repair amount, the insurer deals with the garage directly for payment. This is a useful feature to look for in a motor car insurance plan as it removes the necessity of arranging for high amounts of cash when your car needs urgent repair. Ensure to choose an insurer with a large number of affiliated garages.
- High claim settlement ratio
When you raise a claim on your motor vehicle insurance policy, you would want it to be solved as easily and as soon as possible. That is why it is necessary to look for an insurer with a high claim settlement ratio. This ratio is the number of claims the insurer solved versus the number of claims they received. This ratio is important as it gives you a peek into how your motor insurance claim process will be dealt with by the insurer. Ideally, a claim settlement ratio of 90% and above should be preferred.
Do bear in mind that the features of several motor insurance policies may differ as per the insurer. It is advisable to read the policy documents carefully before signing.
We hope this article helps you choose a great motor car insurance plan. Drive safe!
