Things To Check Once You Buy A Car Insurance Policy

Admin | 21 Apr 2016 | Motor-Insurance | No Comments

After being bombarded with all those tips to consider BEFORE buying car insurance, you finally purchased one, isn't it? Congratulations!

You have completed the first step to protecting your car from unforeseen contingencies.

What's next? Are you planning to put it on the back-burner and forget about it? Cross-checking details on your policy document is crucial, if you wish to avoid chaos at the time of claim.

Here is what you need to scrutinize AFTER buying car insurance.

1.   Personal Details

Silly spelling errors in your name or address can leave you fuming. Check if there are any factual errors in name, demographics, residential address, contact number, email-ID, etc. If you miss out on spotting any error, then you won't be able to play the blame-game at the time of claim.   

2.   Vehicle Details

Is the policy number precisely printed on the document? Is the period of insurance exactly the one that you chose? Human errors are bound to occur even while using technology. Also, verify details such as vehicle model, engine number, make, fuel type, cubic capacity, manufacturing year, seating capacity, cover type and geographical area. Since your insurer is handling multiple policies of thousands of people, they get the benefit of doubt. So, always make sure you perform your duty of reading the policy document with due diligence.

3.   Insured Declared Value (IDV)

You can't ignore the primary reason for which you are paying the premium – IDV! Your insurer may have promised a certain amount of IDV (sum assured amount).

IDV = {(Manufacturer's listed selling price of the car brand and model – Depreciation) + (Accessories not mentioned in the listed selling price – Depreciation)

Verify if the IDV as well as the premium scheduled on the insurance document has been calculated accurately as per the policy terms and your requirements.

4.   Add-on covers

There are multiple add-on covers available in the market. Ultimately, you opted only for the necessary ones such as zero-dep cover (where depreciation amount does not get deducted at the time of claim).

There is a slight increase in premium price with every add-on attached to your policy. Brush through your policy document to check if those add-ons are appropriately mentioned with their terms and conditions.

5.   No Claim Bonus (NCB)

You may be aware of the NCB discount that you will receive if you don't make a claim in the entire year. Is the NCB percentage declared in your policy document?Verify these details.

If you happened to pay for your policy with a reduced NCB and are later found innocent, you have the right to get your NCB reinstated. You can request for a refund on the extra premium paid.

6.   Deductibles

Deductible is the part of the insurance amount to be paid by you. The compulsory deductible is decided by IRDA based on certain factors. You can choose how much amount you would wish to pay if you're selecting voluntary deductible. If[72]  you have opted for voluntary deductible, you would be getting a discount on your premium. However, note that you must be able to calculate the amount you would be able to shell out when the actual time for claim arrives. Whatever you opt for, be it compulsory or voluntary deductible,make sure the deductible amount is mentioned in the document along with the terms and conditions.

What should you do if there are any errors in your document?

By any chance, if you come across any blunders on the policy document or have any apprehensions, point it out to your insurer and get it rectified without any further delay. You will be provided with an endorsement copy, which has to be attached to your original policy document. Note that you won't receive a fresh policy document.

Saving maximum from your pocket is a must even when it comes to car insurance. That's why you made a conscious effort to choose the right policy. Spending a little time in double-checking would make you feel more confident about your choice of investment.

Ensure that your car insurance​ papers are always in your car wherever you drive.

Wish you a stress-free and happy journey!