What is Car Insurance?
Car insurance is a formal contractual obligation between an insurer (insurance company) and an insuree (policyholder). The policy states that any damages incurred by a car due to accidents, disasters (natural calamities, man-made disasters, etc.) are covered in exchange for a regular payment known as the premium.
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Importance of car insurance in India-
As the latest rules and regulations implemented by the motor act of India, it is mandatory for all motor vehicles, especially cars to have an insurance policy, with the bare minimum of third-party insurance.
Cars are slowly moving from the bracket of luxury to necessity and with the increase in the number of vehicles plying on roads, the occurrence of accidents is becoming more and more frequent. Such unprecedented incidents make insurance policies absolutely vital for car owners as they save a lot of money and come in clutch at the time of accidents.
Features of Vehicle Insurance-
Car Insurance Online policies, offered by major banks and other institutions can significantly reduce the burden laid on car owners for various reasons-
Car insurance policies provide coverage under a wide spectrum of aspects, such as theft of vehicle, damage incurred due to various reasons (as specified within the policy), personal accident-related injuries, etc.
Comprehensive cover laid out by banks provide coverage under the circumstances of theft or loss of vehicle, wherein the predetermined IDV (insured declared value) of the car is covered by the insurance company.
In the case of damages incurred by the car, the insurance company provides coverage only in the case of damage dealt due to natural calamities such as (earthquakes and fire), during the time of a collision (conditions as specified by the insurer), and during the time of man-made disasters (as specified by the insurer)
In the case of personal accident, the treatment for any injuries sustained by the policyholder during the time of a collision is covered by the insurer, up to a specific amount. Personal accident covers are add-on policies in most cases.
Some insurance companies also provide lucrative discounts on insurance renewals if a claim has not been made during the policy tenure, known as the no-claim bonus.
Car Insurance Online policies can be purchased with North Loop, offering low premiums and high covers and a 100% digital mode of insurance ownership.