Vehicle Insurance is a legal and financial protection plan that covers you against accidents, damages, theft, and third-party liability. It is mandatory for every vehicle owner and is an important part of responsible driving on the road.
Why Vehicle Insurance is Important
Covers financial loss at the time of an accident.
Handles legal liability for third-party damage or injury.
Provides compensation for vehicle theft or natural calamities (flood, fire, earthquake).
Driving without insurance is a punishable offence.
Parts of Vehicle Insurance
Insurance policy is a legal document that provides protection to the vehicle and its owner. It clearly mentions details about the company, policy, vehicle, and premium.
1. Policy Details
Insurance Company Name:: The policy is always issued by a registered insurance company that operates under IRDA guidelines.
Policy Number:: A unique number generated for each policy separately. It is used for claims and renewals.
Customer ID:: A unique ID assigned to each policyholder by the company to maintain records.
Policy Holder Name & Address:: The registered owner’s name and permanent address are mentioned in the policy.
2. Vehicle Information
Vehicle Details:: Includes registration number, model, engine number, chassis number, seating capacity, cubic capacity (CC), and gross vehicle weight.
Financier Details:: If the vehicle is financed, the financier’s name is clearly mentioned.
Insured Declared Value (IDV):: The current market value of the vehicle as per the insurance company’s policy. It’s calculated by subtracting depreciation from the showroom price. In case of total loss or theft, compensation up to the IDV amount is provided.
Coverage Type:: Specifies whether the policy is comprehensive or third-party, clearly mentioned.
3. Premium & Payment Details
Premium Amount:: The fixed payment amount required by the insurance company, calculated based on IDV, coverage, and risk factors.
Third-Party Premium:: Mandatory liability premium included in the policy.
GST & Charges:: The applicable GST and other extra charges are mentioned.
Total Premium:: All charges are added to calculate the final premium amount, which is mentioned at the end.
