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Little Known Facts about Vehicle Insurance in India
A minor accident repair from your neighbour mechanic doesn’t come cheap anymore, your bill is sure to run into thousands. As reported by NDTV Profit on August 26, 2014, the Competition Commission of India pulled up fourteen car manufacturers, including Maruti, Ford, Mahindra, Fiat and Honda to name a few, for violating spare parts trading norms via monopolistic market control. Thus, a fine of Rs2,545 was levied, thereby spiking the demand for spare parts in the country to counteract it. Thus, it seems like car repair without vehicle insurance has become unaffordable.
What you should know about a Policy
While vehicle insurance has become a necessity, rarely do people understand the scope of it. Here are a few facts that most insured might not know.
- Zero Depreciation -It is a concept that is yet to catch on in India, since most go in for normal policies owing to the fact that they know everything about it. Just like the name suggest, it overlooks depreciation and gives you complete cover Although it is slightly expensive, it is extremely beneficial, especially if you have purchased an expensive car. When you can afford a higher premium amount, ensuring that your car gets full covered; it is more than just beneficial.
- The Law is becoming strict -Most people do not know that vehicle insurance is mandatory. According the statistics given by the New India Assurance in 2014, more than 70% of motorcyclists and 33% of the car owners do not have a motor cover policy.Currently the fine is just Rs 1000 for all vehicles, but if the new Road Transport and Safety Bill, 2014 is passed, the penalties are going to skyrocket. Without proper insurance documents, motorcycles will attract Rs 10,000 and auto-rickshaws will be liable to pay Rs 25,000 towards fine. Car owners will need to shell out Rs 75,000 as a penalty.
- Used Car transfer - While purchasing a used car, not only do you have to transfer the registration to your name, you also need to transfer the vehicle insurance cover, all within 14 days of the purchases, for such a cover to remain valid. For instance, when a resident of Delhi filed for insurance claim on event of an accident involving his purchased used car, it rejected by the State Consumer Dispute Redressal Forum, owing to the fact that the policy was still in the name of the previous owner.
Motor insurance is not a complicated concept, in fact, the policy document thoroughly covers its extent, the insured owner needs to go through it to gain maximum from it.
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