Cover the tracks

Motor insurance protects a vehicle owner against damages to their vehicle and pays for any third-party liability, determined as per law, against the owner. Third-party insurance is a statutory requirement. The vehicle owner is legally liable for any injury or damage to third-party life or property caused by or arising out of the use of the vehicle in a public place. Driving a motor vehicle without insurance in a public place is a punishable offence as per the Motor Vehicles Act, 1988.

Here are some dos and don’ts, as given by the Insurance Regulatory Authority of India (IRDAI), while buying motor insurance:

Dos

  • You can buy a policy through anyone and not compulsorily through your vehicle dealer.
  • Fill the proposal form yourself and provide necessary proof (for verification) even if the vehicle dealer is arranging for the insurance.
  • Fill the proposal form carefully, factually and thoroughly.
  • Ask for information on any available add-on covers, and choose what suits you.
  • Keep these documents updated from the authorities concerned.
  • Check if the company selling the policy is registered with IRDAI
  • Buy the insurance policy through a genuine licensed agent or broker. Ask for an identity card or licence.

Don’ts

  • Don’t leave any column blank in the proposal form.
  • Don’t forget to renew your policy without any break.
  • Don’t forget to find out the correct procedure to transfer the insurance when you buy a second-hand car.
  • Don’t make false declarations about the actual use of the vehicle.

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