A motor insurance policy is a crucial policy that covers your vehicle against loss or damage caused due to natural or man-made disasters. In India, the Motor Insurance Act, 1988 mandates a vehicle owner to purchase a third-party insurance policy before taking their vehicles on road. While it is important to have a valid motor insurance
plan in place, it is also necessary to know about a few factors before buying one.
Here’s a checklist for you to go through before purchasing motor insurance:
Type of Coverage
The type and extent of coverage will differ with each insurance provider so you can choose from a range of add-on covers to enhance the insurance coverage. Before you buy a motor insurance policy, check for the coverage offered for third-party liabilities, own damage, personal accidents, and more, depending on your specific needs.
Bajaj Finance offers a range of comprehensive motor insurance plans that offer financial security to the insured person at affordable premiums. These plans offer coverage against financial losses caused due to theft or damages to your vehicle. It also offers coverage against third-party liabilities along with several add-on benefits.
One of the significant factors that one should consider before buying a motor insurance plan is the premium amount. Generally, a third-party insurance plan is enough to fulfill mandatory requirements but it is always advisable to have a more comprehensive policy covering own damage, personal accidents, and insurance for the co-passengers or pillion rider.
Insured Declared Value (IDV)
The insured declared value (IDV) of the vehicle is determined based on the current market value of your vehicle. It is the maximum amount that can be claimed on your car or bike insurance
in case of total loss or theft of your vehicle. The IDV is usually higher for a new vehicle. The same decreases as a vehicle get older. Any loss or damage greater than the IDV of the vehicle must be borne by the policyholder in case of a claim.
No Claim Bonus (NCB)
Most insurance companies offer a No Claim Bonus (NCB) for every claim-free year. This makes you eligible to avail of a discount on your motor insurance renewal depending on the number of claim-free years. Some of the insurance providers also offer a cumulative bonus which is adjusted on your sum insured.
- Add-on benefits
Motor insurance also has several beneficial add-on covers that can be opted for a nominal additional premium to enhance your primary policy. Here are some of the add ons offered by Bajaj Finance Zero Depreciation Cover
- Roadside Assistance Cover
- Vehicle Accessories Cover
- Consumables Cover
- No Claim Bonus Protection Cover
- Key Replacement Cover
These additional benefits enhance your motor insurance policies covering your extra financial needs.
Many insurers offer cashless claim through their extensive network of garages spread across the country. While choosing an insurance policy, you must check whether the concerned insurance provider has network/preferred garages in your vicinity. This would help you access quality services and also reduce your out-of-pocket expenses. Bajaj Finance insurance partners have a large network of garages in different parts of the country which would help policyholders with quick and cashless claim settlement.
Insurance is a necessity, therefore, choose the right insurance policy that suits you the best. Ensure the security of your vehicle and yourself with a comprehensive and well-balanced motor insurance offered by Bajaj Finance.