Why you should take the time while buying insurance..

..a fair comparison of premium vs coverage/benefits is important before you decide to buy.

You have to understand how insurance is fundamentally designed to serve you before you buy. You will also know why and how a fair comparison of premium vs coverage/benefits is important before you decide to buy.

The structure of insurance as a contract lies on three strong pillars,

  1. A Promise – The Insurer promises to cover your losses due to unforeseen events as specified in the Insurance policy. For example, covering cost of hospitalisation due to specified illnesses in a health insurance policy or covering the cost of accidental repair in your car insurance policy.
  2. Unforeseen Events – The promise holds good only for those events or group of events, which are specified/named in the insurance policy. It is normally called as a set of benefits or coverage clearly spelt out in the insurance policy.
  3. Terms and Conditions – And the Promise will be honored subject to a list of terms and conditions mentioned in the insurance policy. The standard terms, conditions and exclusions (those which are not covered) will be detailed in the ‘Policy Wording’.
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Compare and Save

It is always important to compare the premiums of various insurance companies against benefits offered before buying an insurance policy

Why should you compare insurance policies before buying…

The Premium rates of different insurance companies will vary for the same vehicle and such premiums offered by companies could vary with time.

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Add on covers in Motor Insurance

What it means to you…

Zero or nil Depreciation

Over the past few years more innovative Additional Covers are introduced by various Insurers to benefit Vehicle Owners. The Additional Covers come with additional premiums collected during the inception of the policy. Given below are a few important add on covers and what they meant to you..

In the case of damage to the vehicle,  the standard motor package policy pays for the replacement of parts namely metal, plastic and fibre or rubber after deducting certain percentage towards depreciation based on the age of the vehicle.

Zero/Nil Depreciation add on cover allows the insurer to pay the claim towards replacement of parts without deduction towards depreciation, thereby 100% cost of replacement paid. This cover is available generally for vehicles up to 5 years of age only.

NCB Protection

No claim bonus (NCB) is applicable on renewal of the policy for every claim free policy year.  Normally, in the event of any claim, this discount is withdrawn completely on renewal and NCB becomes NIL.  NCB Protection add on cover protects the NCB earned until last year, even if there is a claim in the existing / expiring policy.  This benefit is available for limited number (1 or 2) of own damage claims only.

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