Insurance Uncovered

The following are some of the frequently asked questions in motor insurance, compiled from IRDAI’s website:

What motor insurance policy should I buy? Comprehensive insurance or liability policy only?

Third-party liability insurance is mandatory for all vehicles plying on public roads in India. This covers liability for injuries and damages to others that you are responsible for. In addition, it is prudent to cover loss or damages to the vehicle itself by way of comprehensive/package policy, which covers both ‘liability’ as well as ‘own damage’ to the insured vehicle. Liability only cover is also known as act only cover.

What is the period of the policy?

A motor policy is usually valid for a year and has to be renewed before the due date. Pay the premium on time. No insurer offers a grace period for paying the premium. In case of lapse of policy by even one day, the vehicle has to be inspected. Moreover, if a comprehensive policy is allowed to lapse for more than 90 days, the accrued benefit of NCB (no claim bonus) is also lost.

Can I transfer my insurance to the purchaser of my vehicle?

Yes, the insurance can be transferred to the buyer of the vehicle, provided the seller informs in writing of such transfer to the insurance company. A fresh proposal form needs to be filled in. A nominal fee is charged for transfer of insurance along with pro-rata recovery of NCB from the date of transfer till policy expiry. It may be noted that the transfer of ownership in comprehensive/package policies has to be recorded within 14 days from the date of transfer, failing which no claim will be payable for own damage to the vehicle.

Can I continue the insurance in the name of the previous owner even after the vehicle has been transferred to my name in the RTO records?

No. Registration and insurance of the vehicle should always be in the same name with the same address. Otherwise, the claim is not payable. A fresh proposal form needs to be filled in. A nominal fee is charged for transfer of insurance.

What are the documents to be submitted for a motor insurance claim?

Generally, the following documents are required to be submitted. However, read through your policy to see the complete list — duly filled in claim form, RC copy of the vehicle, original estimate of loss, original repair invoice and payment receipt. In case cashless facility is availed, only repair invoice would need to be submitted and FIR, if required. For theft claims, the keys are to be submitted. Theft claims would also require non-traceable certificate to be submitted.

What are the documents to be kept in the vehicle while plying in public places?

Certificate of Insurance

Xerox copy of Registration Certificate

Pollution control certificate

Photocopy of driving licence of the person driving the vehicle

I have lost my insurance policy; can I get a duplicate one?

Yes. Please approach the same office which had issued the policy, with a written request. A nominal fee is charged for issuing a duplicate policy copy.

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