Car Insurance: Seeing the cheap premium, you are getting motor insurance, be careful, you may get cheated...

Insurance Tips: Rakesh Kaul, Chief Distribution Officer - Retail Business, Bajaj General Insurance, says that motor insurance isn't just about fulfilling regulatory formalities. It reflects your proactive approach to risk and responsibility. Sometimes, people make a big mistake in saving a little money on motor insurance. They simply focus on fulfilling the legal obligation of third-party liability cover. He explains the things to keep in mind when purchasing motor insurance.

Understanding its importance when purchasing an insurance policy
Motor insurance is essential. But many people consider it only a legal obligation. They only understand the true importance of motor insurance when they need to make a claim or after they have already made a claim. Often, claim rejections or disputes aren't intentional, but arise from a lack of understanding of the policy's terms, documentation, or coverage. Understanding how your policy works and making informed decisions when purchasing a policy can significantly help avoid claim rejections. Therefore, you need to consider some important points before purchasing a policy.

Choose the appropriate Insured Declared Value (IDV)
Insured Declared Value (IDV) is the maximum sum insured under your motor insurance policy, indicating the maximum amount your insurer will pay in the event of a claim. It is usually determined using a chart based on the age of your vehicle, but if your vehicle is more than five years old, it is determined jointly by you and the insurer. IDV also depends on the current market value of your vehicle, including its make, model, age, and depreciation. Determining the correct IDV is crucial, as it affects both your premium and the maximum claim amount. A low IDV may reduce your premium, but it may put you at risk of inadequate insurance coverage, while a high IDV may unnecessarily increase your expenses. It's a good idea to consult your insurer or advisor to help you achieve a balanced value and ensure adequate coverage in line with your vehicle's current market value.

Add Add-ons
A standard own damage policy provides basic protection, but add-ons transform it into comprehensive coverage. These optional coverages allow you to customize protection based on your vehicle's usage and risk profile. Zero Depreciation Cover is one of the most useful add-ons. It removes the depreciation factor that typically reduces your claim amount as your vehicle ages. With this cover, the insurer pays the full cost of repairing or replacing damaged parts without deducting depreciation. With Zero Depreciation Cover, you can restore your vehicle to its original condition without paying any depreciation, so we recommend this add-on. Consumables coverage is another useful add-on that pays for items like lubricants, nuts, bolts, AC gas, and brake fluid. These materials are essential for post-accident repairs and help new parts function properly, even if they aren't part of the physical damage. A standard own-damage policy only covers the cost of repairing physical damage to a vehicle and doesn't include consumables. Adding consumables coverage also covers these repair expenses, minimizing your contribution to repairing your vehicle in the event of an accident.

Engine Protection and Battery Protection
The engine and battery are among the most important and valuable components of any vehicle. The Engine Protection add-on covers damage caused by water ingress into the engine or lubricant leaks, which are particularly significant risks in flood-prone areas. Battery Protection coverage protects electric and hybrid vehicles from water damage or electrical failure. These covers are especially useful in flood-prone areas and regions where rainwaterlogging is a common problem, helping you avoid the inevitable resulting damage to the engine's internal parts. Roadside assistance coverage gives you immediate help in case of a breakdown, including towing, flat tyres, jump starts, fuel delivery, emergency hotel accommodation, legal assistance, and more, ensuring timely assistance no matter where you are.

Bundled Add-ons
For greater benefits, policyholders can choose bundled packages that include key coverages like zero depreciation, engine protection, and roadside assistance in a single plan. Features like "V-Pay" simplify policy management, reduce costs, and streamline the claims process, making it more convenient than choosing individual add-ons.

Hygiene Check
Insurance policies are legal agreements, so it's essential to provide accurate and complete information when purchasing your policy. Ensure you enter information such as your vehicle's registration number, chassis number, owner's name, address, pin code, and previous claim history correctly. Providing accurate details helps you avoid unnecessary paperwork and delays when filing a claim. Keeping all your documents ready makes the process easier and more convenient.

Disclaimer: This content has been sourced and edited from Navbharat Times. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.