Motor Insurance Few Faq’s

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Motor Insurance

  1. What is insurance:

Insurance Capsule Size

Insurance means of a protection from financial loss. Means anything which is covering the losses by pay some Money and Thing financially not emotionally.

  1. How many types of Insurance
    a) General or Non-life Insurance
    b) Life Insurance
  2. What is the mean of ‘Insurer’ and ‘Insured’?
    Insured is the one who holds the policy and Insurer is the company that covers the insured.
  3. What is a premium’? An amount to be paid for a contract of insurance to the insurance company. It is the sum that a person pays monthly, quarterly or annually according to their plans, and takes the coverage for the same.

Discuss for Motor Insurance.

  1. What is Motor Insurance?
    All vehicle which are running on the roads as per the Motor Act is insuring in Motor insurance.
  2. Type of Policies in Motor Insurance?
    a) Package or Comprehensive
    b) Liability or Third Party
  3. What is the different in Package and Liability policies?
    In Package policy Insured vehicle and Third party accidental both are covered while in liability policy is covering only third party accidental insurance.
  4. What is the MFG Date?
    This date is belongs to “When your vehicle built completely”. Basically it is in format of MM/YYYY.
  5. What is Invoice Date?
    A date on which we are taking the new vehicle delivery from dealer.
  6. What is Registration date??
    A date on which, Our vehicle is registering by Concern RTO
  7. Vehicle Make and Model?
    Vehicle and Model is related to name of our vehicle which is also mentioned on our vehicle RC with the variant.
  8. Difference btw RSD and MFG date??
    Maximum difference is allowed by some insurers is 15 months.
  9. What is No Claim Bonus??
    In continuous policy if you are not taking any claim on the same policy then insurance company is give a discount on next renewal which is called No Claim Bonus (NCB)
  10. What is claim?

We can take a benefit of our paid money (Premium), that process is known as claim.

  1. How NCB is work?

Insured is eligible as per the tariff NCB slab as per the vehicle age. If claim is occurred on the same vehicle then NCB will start from “0”.
All Types of Vehicles

% of Discount on OD* premium
No claims have been made or are pending at the end of the year or at the time of policy renewal

20%
No claims have been made or are pending at the end of the year or at the time of policy renewal

25%
No claims have been made or are pending at the end of the year or at the time of policy renewal

35%
No claims have been made or are pending at the end of the year or at the time of policy renewal

45%
No claims have been made or are pending at the end of the year or at the time of policy renewal

50%
*OD= Own Damage

  1. Which title is use for Insured?

IF vehicle is name of Individual then Mr. for Man and Mrs. For Woman. If vehicle is name on corporate or any company, institution name then we will use M/S.

  1. What is registration type?
    Registration type means your vehicle is registered on which name it can be an individual or name on any corporate or any institution or firm name.
  2. What is a nominee and Beneficiary and why it is compulsory??

Nominee is a person who is eligible of insurance benefit if any misshapen will be done by insured. And it is required to assign for the benefits.

  1. Who can be a nominee?
    Mainly nominee should be belongs to our blood relations. And age should be above and equal 18 years. If it is below 18 years then appointee name is mandatory.
  2. What is the mean of hypothecation or financiers??
    If insured has taken a loan on his insured vehicle then hypothecation details should be mandatory. It is also mentioned on vehicle RC
  3. What is IDV or Sum Assured?
    IDV (Insured declared value) is the price of vehicle which is decided by insured and insurer both mutual understandings.
  4. What is Add on?
    Add on are some extra benefit covers which is providing the extra benefit on the behalf of extra premium pay.

· Zero Depreciation
· Quick Assistance of Road or Road side assitance
· Engine and Electronic Circuit Cover
· Loss of Personal Belongings
· Key Replacement
· Daily Cash Allowance
· No Claim Bonus

For follow the news of Add-on:
https://economictimes.indiatimes.com/tdmc/your-money/how-motor-insurance-policy-add-on-covers-work/tomorrowmakersshow/48746078.cms

  1. If you are not getting the policy after making the payment then what you do?

a) This issue is coming due to not return on the thank you load page.
b) Cause of the not any confirmation is given by your bank to payment gateway or late response.
c) Slow Internet connection speed.

In this case you can check the policy in brief case and if you are not getting the same then you can connect on poshelpdesk@smcinsurance.com and call on 1800-2666-3666 or chat option.

24.Payment failure or not getting the policy then what details is required?
If you are not getting the policy then provide the below mentioned data:
Insured Name
Vehicle Number
Transaction ID
Amount Paid:
Policy Issuance Date
Customer Phone Number
Risk start date
Snap of the transaction

  1. Why IDV will change after some time?

The same is happening due to the network speed. If your connection speed is low then we are showing the quote as per our selection of IDV ( -10 to 15%) and provide the quote. If your internet connectivity is good then you will get the quote with same IDV always.

26.Why we are taking the Adhar No.?
In our Web service of POS Portal insurer is asking as a mandatory field. It is under discussion with all of them.

  1. All insurer quotes are not showing on the portal?

Portal is designed by all underwriting guideline of all insurers. It is totally online process so we can’t discuss individually cases by case with underwriter. So some insurer are declined some vehicle/RTO/Places. So all insurer are not showing the quotes.
Some time internet connectivity and server down of insurer may the same issue.

28.Who is not giving the corporate policy?
Reliance, IFFCO, TATA

29.Special characters issues?
Special characters are not allowed in any box. Some insurers are not allowing the same.

  1. Why POS Name and Adhar no., Mobile no. are printed on the schedule?

It is mandatory by IRDA as per the compliance

  1. Why Break in risk date is future date?

In case of break in insurers are taking the risk from T+1 to T+3 risk start date due to stop fraud claim happened in past.

Specially For Bike or MTW Insurance:

Why do I need bike insurance?
If you own a bike in India you need to have bike insurance by law. bike insurance protects you from financial loss and liability. Apart from the fact that it is legally required, it can save you from financial ruin. While driving you are responsible for the safety of:
Your passengers
Your fellow drivers
Other people’s property
Pedestrians
Yourself
Insurance helps cover the costs of potential damages or injuries in case of an unforeseen accident or theft and helps you in obliging any legal liability arises because of your driving. In its simplest sense, bike insurance is smart planning that can help protect you from expensive, sometimes devastating surprises.
Can the policy be renewed online?
Private bike insurance policy can be renewed online, provided you renew it between the period starting 2 months before expiry and 6 days after expiry of the previous policy. Please keep in mind that not all the insurer has online buy / renew facility with them.
What is No Claim Bonus?
No Claim Bonus (NCB) is the discount earned in the own damage part of premium due to a claim free year. An insured becomes entitled to
NCB only at the renewal of a policy after the expiry of the full duration of 12 months. As per the schedule of tariff, NCB can be earned in the Own Damage section of Policies covering all classes of vehicles but not on Motor Trade Policies (Road Transit Risks / Road Risks / Internal Risks) and policies that cover only Fire and / or Theft Risks.
Is the No Claim Bonus transferable?
Yes, in case you are changing from one insurer to other and have accrued some NCB from the first one, you can always get the benefits for your NCB with the new insurer. You only need to show evidence that you are entitled to No Claim Bonus from your previous motor insurance company. Evidence can be in form of:
A renewal notice or
A letter confirming the NCB entitlement from the previous insurer
A written declaration
What is cover note?
A cover note is a temporary certificate of insurance issued by the insurer before the issuance of a policy, after the insured has given a duly filled in proposal form and has paid the premium in full. A cover note is valid for a period of 60 days from the date of issue of the cover note and the insurer will issue the certificate of insurance before the cover note expires.
What are the types of cover?
There are two types of policy – comprehensive policy and third party insurance. The comprehensive insurance policy offers protection to you and your bike. The comprehensive cover comprises of-
Damage to your vehicle
Third party legal liability
Personal accident cover to driver (owner)
Third party insurance is part of comprehensive policy but can be purchased alone. It is mandatory to have third party insurance policy.
What are the general exclusions under comprehensive policy?
Followings are generally not covered under any comprehensive policy:
Mechanical breakdown
Wear & tear
Consequential loss
Depreciation
Deliberate accident loss
Intoxicated driving
Any contractual liability
What if other than owner was driving at the time of the accident? Is that person covered by owner’s policy?
If the person driving the vehicle has a valid license, the vehicle is insured for all the accidents that occurred due to the hazards specified. To insure the person driving the vehicle, who is not the owner, an additional personal accident cover has to be taken for unnamed passengers. For the owner-driver, the policy compulsorily has a personal accident cover, as per tariff.
What is Personal Accident cover? What are the rules governing it?
The insured is adequately covered in case of an occurrence due to the specified hazards leading to bodily injury/ permanent disability or death. The motor insurance policy essentially has a PA cover for the owner-driver, as per tariff, for which no extra premium is to be paid.
For a person other than the owner and driver, the PA cover has to be taken separately paying an additional premium. The amount paid as compensation depends upon the extent of cover opted for. And for the driver, the extent of the cover is in accordance with the Workmen’s Compensation Act.
Can No Claim Bonus be forfeited? If yes, then why?
NCB will be forfeited in following cases only:
If there is any claim made
If there is a break in the insurance period for more than 90 days
Can the accessories of the vehicle be insured? If yes, to what extent?
You can insure your vehicle accessories under electrical and non- electrical items whose amount is not included in the showroom price of the bike but are fitted separately to the vehicle. For that you need to declare the value of such items separately, which will be added to the sum insured over and above the IDV (Insured’s Declared Value).
What happens if the vehicle has an additional CNG kit?
In case of vehicles fitted with bi-fuel system such as Petrol/ Diesel and CNG/LPG, permitted by the RTA concerned, the CNG/LPG kit fitted to the vehicle is to be insured separately at an additional premium of 4% on the value of such kit. You need to specifically declare this in the proposal form.
What is IDV (Insured’s Declared Value) and how it is determined?
The Insured’s Declared Value (IDV) of the vehicle will be deemed to be the ‘SUM INSURED’ for the purpose of motor tariff and it will be fixed at the commencement of each policy period for each insured vehicle. The IDV of the vehicle is to be fixed on the basis of manufacturer’s listed selling price of the brand and model as the vehicle proposed for insurance at the commencement of insurance /renewal and adjusted for depreciation (as per schedule specified below). The IDV of the side bike(s) and / or accessories, if any, fitted to the vehicle but not included in the manufacturer’s listed selling price of the vehicle is also likewise to be fixed. Schedule of Depreciation for arriving at IDV
Below the Age of the vehicle & % of depreciation for fixing IDV
Not exceeding 6 months: 5%
Exceeding 6 months but not exceeding 1 year: 15%
Exceeding 1 year but not exceeding 2 years: 20%
Exceeding 2 years but not exceeding 3 years: 30%
Exceeding 3 years but not exceeding 4 years: 40%
Exceeding 4 years but not exceeding 5 years: 50%
How to calculate value of accessories?
The value of accessories is calculated on the original cost of purchase of the accessory less depreciation for the usage. The depreciation is applied at the same rate as is applied for a vehicle for calculating IDV (Insured’s Declared Value).
Legal Liability Cover for paid driver. What does it cover?
This covers Legal liability to paid drivers /and/or cleaner employed in connection with the operation and/or maintenance of motor vehicle under the Workmen’s Compensation Act, Fatal Accidents Act and at Common Law.
What are the factors affecting the premium amount?
The premium payable on a vehicle depends on:
Type of vehicle
Age of vehicle
City of registration
Period of coverage (For less than 12 months) and
Any applicable discounts/loadings, as per relevant General regulation of motor tariff.
How the places of residence affect the premium amount?
Yes, you would be required to pay premium again.
Is there any benefit available to handicapped people?
A discount of 50% is available on the own damage premium provided they modify such vehicles for use. The above discount is also available for institutions exclusively engaged in the service of the handicapped.
Will I be eligible for any discounts if I am a member of Automobile Association of India?
Yes, as a member of any of the following Automobile Association, a discount is given under the policy. The Associations are:
Automobile Association of Eastern India
The United Province Automobile Association
The Western India Automobile Association
The Automobile Association of Southern India
The Automobile Association of Upper India
Is there any discount available for installing anti-theft alarm and locking system?
If the vehicle is fitted with anti theft devices, which is approved by the Automobile Research Association of India (ARAI), a discount on own damage premium is allowed.
What is ARAI?
ARAI stands for Automotive Research Association of India. In case you have installed ARAI approved anti theft device in your vehicle, whose installation is duly certified by the agency, you get a discount of 2.5% on the OD Premium to a maximum of `500.
What are the general steps adopted by the insurer to settle claims?
Generally following procedure adopted by the insurers once the claim form is filled and filed along with the necessary documents.
The surveyor attends the claim within 24 hours from the time of intimation.
Take photographs, assess, estimate and inform assessed estimates to the User within the same day of assessment.
After the completion of the job, the Surveyor carries out re-inspection. The insured then makes payment to the workshop/ garage as per the surveyor’s assessed estimation and releases a proof of release document. (The proof of release is an authenticated document signed by the insured to release his vehicle from the garage after it is checked and repaired).
Lastly, the insured submits the original bill, proof of release and cash receipt (derived from the garage) to the surveyor.
The surveyor then sends the claim file to the Insurance Company for settlement along with all the documents.
Insurance company then reimburses the Customer within seven working days from the date of receipt of claim file.
Is there any cashless facility available?
Yes, if you take your vehicle to insurer’s authorized garage/workshop for which insurer have agreement for cashless facility, you can avail cashless repair of damages. These garages come under network garages.
What is the amount that insured would have to bear?
Insured will have to bear the following charges:
The amount of depreciation as per the rate prescribed by the Tariff advisory Committee
Reasonable value of salvage
Compulsory and voluntary deductions under the policy, if insured have opted for it.
What if claim is lodged after the expiry of the policy date for an event that occurred during the policy period?
The claim is still valid even after the expiry of the policy date because the event took place during the policy period.
Will the claim affect renewal?
Yes, if claim is filed for any kind of damages during the insured period, at renewal, all the NCB ceases that have been accrued over the years. So it is advisable to always compare the amount of future NCB and claims before filing for any claim.
What is the meaning of deductibles? What is the deductible applicable to a Private bike?
Deductible is the portion of claim that is not insured under the policy. Voluntary deductible is the amount that you have to compulsorily bear during the event of a claim.

For PRIVATE Car:
Why do I need car insurance?
If you own a car in India you need to have car insurance by law. Car insurance protects you from financial loss and liability. Apart from the fact that it is legally required, it can save you from financial ruin. While driving you are responsible for the safety of:
Your passengers
Your fellow drivers
Other people’s property
Pedestrians
Yourself
Insurance helps cover the costs of potential damages or injuries in case of an unforeseen accident or theft and helps you in obliging any legal liability arises because of your driving. In its simplest sense, car insurance is smart planning that can help protect you from expensive, sometimes devastating surprises.
Can the policy be renewed online?
Private car insurance policy can be renewed online, provided you renew it between the period starting 2 months before expiry and 6 days after expiry of the previous policy. Please keep in mind that not all the insurer has online buy/renew facility with them.
What is No Claim Bonus?
No Claim Bonus (NCB) is the discount earned in the own damage part of premium due to a claim free year. An insured becomes entitled to
NCB only at the renewal of a policy after the expiry of the full duration of 12 months. As per the schedule of tariff, NCB can be earned in the Own Damage section of Policies covering all classes of vehicles but not on Motor Trade Policies (Road Transit Risks / Road Risks / Internal Risks) and policies that cover only Fire and / or Theft Risks.
Is the No Claim Bonus transferable?
Yes, in case you are changing from one insurer to other and have accrued some NCB from the first one, you can always get the benefits for your NCB with the new insurer. You only need to show evidence that you are entitled to No Claim Bonus from your previous motor insurance company. Evidence can be in form of:
A renewal notice or
A letter confirming the NCB entitlement from the previous insurer
A written declaration
What is cover note?
A cover note is a temporary certificate of insurance issued by the insurer before the issuance of a policy, after the insured has given a duly filled in proposal form and has paid the premium in full. A cover note is valid for a period of 60 days from the date of issue of the cover note and the insurer will issue the certificate of insurance before the cover note expires.
What are the types of cover?
There are two types of policy – comprehensive policy and third party insurance. The comprehensive insurance policy offers protection to you and your car. The comprehensive cover comprises of-
Damage to your vehicle
Third party legal liability
Personal accident cover to driver (owner)
Third party insurance is part of comprehensive policy but can be purchased alone. It is mandatory to have third party insurance policy.
What are the general exclusions under comprehensive policy?
Followings are generally not covered under any comprehensive policy:
Mechanical breakdown
Wear & tear
Consequential loss
Depreciation
Deliberate accident loss
Intoxicated driving
Any contractual liability
What if other than owner was driving at the time of the accident? Is that person covered by owner’s policy?
If the person driving the vehicle has a valid license, the vehicle is insured for all the accidents that occurred due to the hazards specified. To insure the person driving the vehicle, who is not the owner, an additional personal accident cover has to be taken for unnamed passengers. For the owner-driver, the policy compulsorily has a personal accident cover, as per tariff.
What is Personal Accident cover? What are the rules governing it?
The insured is adequately covered in case of an occurrence due to the specified hazards leading to bodily injury/ permanent disability or death. The motor insurance policy essentially has a PA cover for the owner-driver, as per tariff, for which no extra premium is to be paid.
For a person other than the owner and driver, the PA cover has to be taken separately paying an additional premium. The amount paid as compensation depends upon the extent of cover opted for. And for the driver, the extent of the cover is in accordance with the Workmen’s Compensation Act.
Can No Claim Bonus be forfeited? If yes, then why?
NCB will be forfeited in following cases only:
If there is any claim made
If there is a break in the insurance period for more than 90 days
Can the accessories of the vehicle be insured? If yes, to what extent?
You can insure your vehicle accessories under electrical and non- electrical items whose amount is not included in the showroom price of the car but are fitted separately to the vehicle. For that you need to declare the value of such items separately, which will be added to the sum insured over and above the IDV (Insured’s Declared Value).
What happens if the vehicle has an additional CNG kit?
In case of vehicles fitted with bi-fuel system such as Petrol/ Diesel and CNG/LPG, permitted by the RTA concerned, the CNG/LPG kit fitted to the vehicle is to be insured separately at an additional premium of 4% on the value of such kit. You need to specifically declare this in the proposal form.
What is IDV (Insured’s Declared Value) and how it is determined?
The Insured’s Declared Value (IDV) of the vehicle will be deemed to be the ‘SUM INSURED’ for the purpose of motor tariff and it will be fixed at the commencement of each policy period for each insured vehicle. The IDV of the vehicle is to be fixed on the basis of manufacturer’s listed selling price of the brand and model as the vehicle proposed for insurance at the commencement of insurance /renewal and adjusted for depreciation (as per schedule specified below). The IDV of the side car(s) and / or accessories, if any, fitted to the vehicle but not included in the manufacturer’s listed selling price of the vehicle is also likewise to be fixed. Schedule of Depreciation for arriving at IDV
Below the Age of the vehicle & % of depreciation for fixing IDV
Not exceeding 6 months: 5%
Exceeding 6 months but not exceeding 1 year: 15%
Exceeding 1 year but not exceeding 2 years: 20%
Exceeding 2 years but not exceeding 3 years: 30%
Exceeding 3 years but not exceeding 4 years: 40%
Exceeding 4 years but not exceeding 5 years: 50%
How to calculate value of accessories?
The value of accessories is calculated on the original cost of purchase of the accessory less depreciation for the usage. The depreciation is applied at the same rate as is applied for a vehicle for calculating IDV (Insured’s Declared Value).
Legal Liability Cover for paid driver. What does it cover?
This covers Legal liability to paid drivers /and/or cleaner employed in connection with the operation and/or maintenance of motor vehicle under the Workmen’s Compensation Act, Fatal Accidents Act and at Common Law.
What are the factors affecting the premium amount?
The premium payable on a vehicle depends on:
Type of vehicle
Age of vehicle
City of registration
Period of coverage (For less than 12 months) and
Any applicable discounts/loadings, as per relevant General regulation of motor tariff.
How the places of residence affect the premium amount?
Yes, you would be required to pay premium again.
Is there any benefit available to handicapped people?
A discount of 50% is available on the own damage premium provided they modify such vehicles for use. The above discount is also available for institutions exclusively engaged in the service of the handicapped.
Will I be eligible for any discounts if I am a member of Automobile Association of India?
Yes, as a member of any of the following Automobile Association, a discount is given under the policy. The Associations are:
Automobile Association of Eastern India
The United Province Automobile Association
The Western India Automobile Association
The Automobile Association of Southern India
The Automobile Association of Upper India
Is there any discount available for installing anti-theft alarm and locking system?
If the vehicle is fitted with anti theft devices, which is approved by the Automobile Research Association of India (ARAI), a discount on own damage premium is allowed.
What is ARAI?
ARAI stands for Automotive Research Association of India. In case you have installed ARAI approved anti theft device in your vehicle, whose installation is duly certified by the agency, you get a discount of 2.5% on the OD Premium to a maximum of `500.
What are the general steps adopted by the insurer to settle claims?
Generally following procedure adopted by the insurers once the claim form is filled and filed along with the necessary documents.
The surveyor attends the claim within 24 hours from the time of intimation.
Take photographs, assess, estimate and inform assessed estimates to the User within the same day of assessment.
After the completion of the job, the Surveyor carries out re-inspection. The insured then makes payment to the workshop/ garage as per the surveyor’s assessed estimation and releases a proof of release document. (The proof of release is an authenticated document signed by the insured to release his vehicle from the garage after it is checked and repaired).
Lastly, the insured submits the original bill, proof of release and cash receipt (derived from the garage) to the surveyor.
The surveyor then sends the claim file to the Insurance Company for settlement along with all the documents.
Insurance company then reimburses the Customer within seven working days from the date of receipt of claim file.
Is there any cashless facility available?
Yes, if you take your vehicle to insurer’s authorized garage/workshop for which insurer have agreement for cashless facility, you can avail cashless repair of damages. These garages come under network garages.
What is the amount that insured would have to bear?
Insured will have to bear the following charges:
The amount of depreciation as per the rate prescribed by the Tariff advisory Committee
Reasonable value of salvage
Compulsory and voluntary deductions under the policy, if insured have opted for it.
What if claim is lodged after the expiry of the policy date for an event that occurred during the policy period?
The claim is still valid even after the expiry of the policy date because the event took place during the policy period.
Will the claim affect renewal?
Yes, if claim is filed for any kind of damages during the insured period, at renewal, all the NCB ceases that have been accrued over the years. So it is advisable to always compare the amount of future NCB and claims before filing for any claim.
What is the meaning of deductibles? What is the deductible applicable to a Private Car?
Deductible is the portion of claim that is not insured under the policy. Voluntary deductible is the amount that you have to compulsorily bear during the event of a claim.
For e.g., if your claim amount is 15,000 and the voluntary deductible is 4000, then you have to bear the first 4000 and the claim will be worth 11000. Discount on the premium is given for choosing higher deductible. There is also a compulsory deductible applicable as per the Indian Motor Tariff:
Private Cars (Not exceeding 1500cc) 500
Private Cars (Exceeding 1500cc) 1000

 

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