Before purchasing your dream car, it’s important to know the latest advancements in the world of auto insurance. Some of these features can minimise your insurance premium and provide better coverage.
Under the policy, policyholders will get back the total premium, if they survive the term, they paid under the policy not including any extra premium, rider premium or taxes paid.
From delays in claim settlement to unfair terms and poor customer service, policyholders face a number of issues with their insurance service providers.
If you file a claim, you will lose the no-claim bonus (NCB), a discount on your premium at the next policy renewal. This will matter especially so if you have had many claim-free years. The NCB goes up from 20% to 50% as you go from one claim-free year to five such consecutive years
Insurers will have to appoint nodal claim officers, set up district-level claim desks and minimise documentation requirements
Knowledge of key terms such as insured declared value and deductibles and add-ons such as zero depreciation and engine protect can come handy at the time of taking a car insurance policy.
In the case of cars being swept away due to torrential rains, you will have to file an FIR for loss of vehicle. Typically, the vehicles will be located after a few days. If not, this will be treated as a total loss and insurers will pay out the insured declared value (IDV) of the car. If it is located and the cost of repairs is more than 75 percent of the IDV, again, amount equal to the IDV will be paid out.
Those with a regular income stream may be better off with regular premium term plans. But those with uncertain cash flows can opt for single or limited premium term plans.
Affordability and complex clauses constitute key barriers to health insurance purchase, while higher premiums and desire to ‘invest’ in return-generating products impeded life insurance purchase decisions, a survey conducted by online insurance broking firm Policybazaar has found
The Reserve Bank of India is likely to keep the rates unchanged for a longer period. It will embark on the journey of rate cuts only in the first quarter of FY2025. Even then, it could be shallow, not more than 50-75 basis points, says Arun Srinivasan, Head, Fixed Income, ICICI Prudential Life Insurance Company.
Both an independent critical illness cover and a rider protect you financially against dreaded diseases such as cancer, stroke and kidney failure. While critical illness riders are typically linked to term life insurance policies, standalone critical illness policies can be bought separately through general insurance companies.