Accidents are now the most common thing you see on the highways, excluding the ordinary traffic. Accidents happen for terrible and very unforeseeable reasons. The severity of an accident is directly correlated with the accusations brought against those responsible after it. A recent study found that if you obtain your licence at the age of 16, you have a fair chance of being in a collision by the time you are 34.
When an accident happens on the road, it usually happens because one of the two drivers was being negligent. Regardless of who is at fault, both parties are responsible for the loss. When your brand-new or expensive vehicle is damaged and it wasn’t even your fault, the pain is amplified. Finances, however, are the main source of anxiety. Car insurance benefits in each of these situations. It is recommended to compare auto insurance coverage before choosing one in order to make an informed decision.
Don’t make a car insurance claim under the following circumstances:
If you have car insurance, it only makes sense to submit a claim in the event that you or your vehicle sustain significant damage. Nevertheless, there are some circumstances in which it would be more lucrative to use your own funds.
- When you just have third-party automobile insurance: Comprehensive and third-party auto insurance are the two most widely used varieties in India. Third-party insurance, as its name implies, provides coverage to a third party in the event of an accident or other incident that was the driver’s fault. Comparatively speaking, comprehensive insurance provides a larger variety of advantages because it covers both parties’ losses. Therefore, your car insurance claim rules won’t cover you or your own vehicle if you simply have third-party insurance.
- When the No-claim bonus (NCB) outweighs the cost of fixing your car: It’s likely that you haven’t used your vehicle insurance in a while if you’ve established your mettle as a responsible driver and fortune has been on your side the entire time. This enables you to receive savings of up to 50% on your subsequent premium. As seen in the figure below, this concession is known as a “No-Claim Bonus.” Own damage premium and third-party premium are the two halves of the typical insurance premium. Savings from the NCB are solely applicable to the former. Your NCB increases if you do not submit a claim each year. However, the NCB returns to zero after a claim is submitted. The premium will go up as a result for the next year. Therefore, it is advised that you avoid submitting a claim and cover any minor damages out of your own pocket instead. Long-term, this could turn out to be a savings move. Additionally, the recently implemented “add on” function aids in maintaining the NCB even though the insurer is only permitted to submit a total of three claims for the duration of the policy. *
- When a third party is at fault: When it is a fault of the third party, filing a First Information Report (FIR) to establish your innocence is the most crucial action. After completing this, you can submit a third-party insurance claim. Even though it takes longer, it will enable you to get your NCB benefits and also other car insurance benefits.
Who would have believed that simply choosing not to use insurance, one may receive more advantages? To obtain the greatest vehicle insurance online and have a carefree life, check out businesses like Bajaj Allianz General Insurance and learn how to apply for car insurance and also how to renew car insurance on time.
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. You can opt for a regime change during the next financial year.
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
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