What are the main components of Car Insurance?
Do you ever think, why you should insure your car? Is this because the government of India has made it mandatory for every vehicle (owner) to insure their vehicle or it is a part of your vehicle expenses?
If these are your answer then you have misinterpreted the meaning of insurance. Insurance means to compensate you at the time of perils. These compensations are basically financial aids provided by the insurance companies. If we will talk about Car Insurance then there are two types of insurance:
Liability or Third-Party (TP) Insurance: - The government of India has made it mandatory for every car owner to be insured with at least third-party insurance. TP Insurance covers damage and losses caused to a third-party person, vehicle or property.
Comprehensive Insurance: - This is the most valuable insurance for your car. Comprehensive insurance covers damages to your own vehicle and third party. These damages can be in form of accidents, natural disasters or any man-made activity.
What are the main points which should be focused on at the time of purchasing Car Insurance?
· Policy terms: - Look what is your requirement and what is the policy provides. The policy should meet your condition. Ensure every term as per requirement.
· Add-On Cover: - Add-on basically helps to add value to the regular insurance. The Insurance company offers some additional coverage that can be added to the policy by paying an extra premium.
· Insured Declared Value (IDV): - IDV is the value of the vehicle in case of total loss or theft. According to IDV, the premium is also calculated for the policy.
· No Claim Bonus (NCB): - NCB is the added bonus that is provided to you for not making any claim for an entire year and throughout policy tenure.
For More information you can Visit Here:- https://shriram-general-insurance.blogspot.com/