Introduction:
Let’s understand about motor insurance today. It’s a really common and popular topic. When buying a car or bike, this is one of the most important things to consider. We invest money but often overlook the details. So, let’s dive deep into insurance today. What is zero depreciation? What is IDV? What is RTI? We’ll understand all that. And we’ll also explain this— even if you have insurance, if you haven’t paid the right advance, you’re definitely going to end up spending a lot from your own pocket. And it wouldn’t be wrong to say that you are mostly getting insurance wrong. So, let’s understand motor insurance in detail.
What is Car Insurance?
The insurance covers the complete cost of the damage. So, if you've taken proper add-ons and opted for zero depreciation in your comprehensive package, the insurance will cover the full cost. But there’s a catch—if you haven't taken engine protection, engine damage won’t be covered. Only the body will be covered in that case. So, getting engine protection cover is really important. It’s best not to ignore it. Lastly, let’s talk about RTI. Not about Right to Information. You totally have the right to ask anything, so feel free to drop your questions in the comment section. We'll definitely answer them for you. But for now, in motor insurance, RTI stands for Right To Invoice. This means you get the full actual value of your car. So, if your car gets damaged or stolen, the invoice value—the billing amount including the on-road price—is fully covered if you opt for RTI. Now, when buying a new car, should you get insurance from the dealership? Or should you do it yourself?
Types of Car Insurance:
First
of all, I know you're probably familiar with third-party and comprehensive
insurance. But still, I'll give you a quick overview. See, third-party
insurance is mandatory, and driving without it is illegal under the Motor
Vehicle Act of 1988. It's compulsory in India. The premium is pretty low, but
it only offers as much help and value as it costs. But first, understand what
third-party insurance actually is. Let’s say you accidentally hit someone
else’s car or bike, and their vehicle gets damaged because of your car or bike.
It might even cause some medical injuries. In that case, the insurance company
compensates the victim or the other party on your behalf. So, the insurance
company you bought the insurance from pays for the damages to the third party.
Keep in mind, this doesn’t cover any damage to your own vehicle. For that, you
need a different type of insurance.
You
have to get comprehensive insurance. We'll talk about commercial insurance in a
bit. But first, let me explain how tough it is to get a third-party insurance
claim in India. First off, you need to go to the police station and file an
FIR. After that, you have to present the charge sheet and case in a special
court called the MACT, which stands for Motor Accident Claims Tribunal. Then,
you have to present your entire case there. For this, you need proper evidence,
and proving the genuineness is quite a difficult task. Yes, you have to do all
this yourself. Even then, the chances of actually getting success on this are
pretty slim. So, you could say it's almost impossible in India. But look,
third-party insurance is necessary, though its benefits are very minimal.
Still, you have to get it. Also, proving yourself not guilty in third-party
insurance cases is a really tough task. Even if you manage all that, the
chances of actually getting the compensation you need are very low. And then
there's the whole hassle of going to court, which takes up a lot of time for
the compensation.
What
can I say about it? In India, the process and reliability of accidental
insurance claims are a bit iffy. Especially if you’ve only taken third-party
coverage, it’s better to go for a comprehensive package. The cost difference
might seem like you’re saving thousands, but in the end, if you get into an
accident, you’ll end up spending a lot more. So, a comprehensive package is
enough. Also, don’t blindly trust your policy provider or dealer. Make sure you
yourself fully understand what kind of add-ons you’ve opted for. It's a
comprehensive package. And we'll tell you everything about it ahead—what things
you need to be aware of. Like I said, getting comprehensive insurance is a
smart move. Because not only does it cover third-party loss, but you also get
some coverage for complete damage. Of course, it's a bit more expensive
comparatively. And adding some basic add-ons is really important too. So even
if you go for a comprehensive package, it's crucial to include those basic
add-ons. And we'll talk about what those add-ons are later. But before that,
let me tell you, even if you've taken a comprehensive package, you still don’t
get complete coverage. There are some clauses in it. For example, fiberglass
parts are insured for only 70% of their value. Whereas for rubber, plastic, and
painting materials, you get just 50% of their value covered by insurance. You
have to pay the remaining amount out of your own pocket. By the way, the full
amount for the windshield is covered by the insurer. You just have to pay the
processing fee.
What is IDV?
Alright,
let’s talk about IDV now. Whenever you buy a policy, you must have seen
something called IDV. So, what exactly is this? Let me explain. And as soon as
you increase your IDV amount, your premium also goes up. So, what exactly is
this IDV? And what’s the right IDV you should choose for your car? See, IDV
stands for Insured Declared Value, which basically means the current value of
your car. What happens is, the insurance company agrees to pay you the IDV
amount of your car in case of a claim. If your car gets completely damaged or
even lost altogether. With comprehensive insurance, if your car gets stolen,
destroyed in any natural disaster, or suffers any external damage, you’re
covered. That’s why it’s a bit more expensive. And the higher the IDV (Insured
Declared Value) you choose, the higher your premium will be, but you also get
better financial protection. There’s an IDV calculator where you can check your
car’s value. You can control the value. I was talking about the 12 basic
add-ons, without which your comprehensive insurance package becomes really good
and quite important. All those add-ons, and the very first one is the engine
protection cover. This is a must because if your engine warranty has expired
and something goes wrong with the engine—which is basically the heart of the
car and the most important part of any car or bike—then being insured is really
important. So, among the add-ons, definitely get the engine protection cover.
Also, add consumables like lubricants, fasteners, nuts and bolts, filters, and some other basic components. Keys and locks are important too—if you lose the key, it’ll come in handy. You'll also see there's a daily allowance add-on. Basically, it means that while your vehicle is at the service station getting fixed, you’ll get compensated for the transportation you use during that time. For example, you can offset your Ola or Uber bills with this. Besides that, getting personal accident coverage is really important. It covers medical expenses up to 15 lakhs if you have personal accidental coverage. This is also quite necessary. You’ve probably heard about zero depreciation—it’s a pretty popular topic. This is basically valid only for those who have a comprehensive insurance package, and their car should be less than 5 years old. So, the car’s age must be under 5 years. In this case, zero depreciation applies, provided you’ve taken the add-ons.
Conclusion:
I hope this would help you to understand importance of car insurance and also to choose best vehicle insurance for your car. If you already have general insurance policy, comment down Insurance company name and your experience which will help readers.
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