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Motor Insurance FAQs on Coverage

Read onn to know more about the costs covered by your motor insurance and get answerrs to many more such questions that you may have.

Apnainsurance.com Research Bureau

05 Dec 2007

What if I do not receive an insurance certificate right away?

If you do not receive your insurance certificate right away, you will be provided with a cover note. It is a temporary insurance document establishing proof of insurance and you can register your vehicle with it. The cover note is valid for 60 days from its date of issue. Within that time, it is replaced by the actual policy document and certificate.

Does the motor insurance policy automatically cover all my high-cost accessories such as music system, extra fittings, etc?

Not unless they are installed and incorporated by the manufacturer as part of the model. For instance, air conditioners used to be accessories in cars; now they come as part of a car's specifications in most cases. However, additional accessories such as music systems, extra mirrors can only be insured by adding them as accessories. The price of such items will be included after depreciation, over and above the Insured's Declared Value (IDV) of the vehicle.

Are there add-on covers available for an auto insurance policy?

The optional covers or extensions you can purchase on your motor insurance policy include:

o Cover for loss or damage to accessories fitted in the vehicle such as stereos, fans, air-conditioners, etc.

o Personal Accident cover for passengers and drivers under private car policies

o Cover for legal liability to be paid to employees or non-fare paying passengers in commercial vehicles

Will I get a Personal Accident cover if the vehicle is registered under someone else's name, but is driven by me and the premium is also paid by me?

You might pay the premium and drive the vehicle but the vehicle is still in another person's name. In such cases, i.e. your status as an unnamed driver, you have to purchase separate personal accident cover at an additional cost. You can decide the extent of personal accident cover you want to purchase.

What does the Legal Liability cover for a paid driver include?

Legal liability cover for a paid driver covers the legal compensation that might have to be paid if a third party files any case against the driver for damage, loss, or fire. The driver is covered for a sum equal to his salary for the policy period. It also covers accidents and occupational diseases.

Can I take a policy for a vehicle belonging to someone else?

Yes. The person buying a policy need not be the owner; anyone can purchase insurance, acting on behalf of the insured.

Can I buy an insurance policy for a 15-year old vehicle?

Sure.

But you can only buy a Third Party policy, not the Comprehensive one.

Private cars older than 15 years are normally not accepted for Comprehensive cover. To accept Comprehensive cover for vehicles that are 10 to 15 years old, insurers demand an inspection report from a surveyor certifying the condition of the vehicle.

Motorcycles and commercial vehicles older than 10 years are normally not granted Comprehensive insurance cover. The Third Party policy, however, knows no age limit; in fact, it is a mandatory requirement.

Can I buy a motor insurance policy for less than a year? Or for more than a year?

More than a Year

Ordinarily, a motor insurance policy cannot be issued for a period of more than a year. However, Third Party Liability policies can be issued on a long term basis for motorcycles and scooters only. Such policies remain valid until the registration of the vehicle is canceled by the Regional Transport Authority (RTA).

Such a policy is particularly useful for owners of older vehicles, where Comprehensive cover can be expensive, given the age and value of the vehicle. Premium for such policies is charged as per the Long Term Act Policy Premium Schedule.

Less than a Year

Usually all motor insurance plans are annual policies. However, an extension for less than 12 months or a policy for a short period can be provided with special approval from a competent authority in the company.

Such a policy may be required if the vehicle owner plans to sell off the vehicle within a few months and does not intend to renew the policy for another year. Premium for such policies is charged as per the Short Period Scale and is expensive.

Can my vehicle be insured against Fire & Theft only?

Yes, private cars, motorcycles, scooters, and commercial vehicles can be insured against fire and theft risks if they are laid up in the garage and not in active use.

In the case of Fire & Theft Only covers, the insurance company is liable to indemnify the insured only against loss or damage by:

  • Fire
  • Explosion
  • Self-ignition or lightning
  • Burglary
  • Housebreaking or theft
  • Riot
  • Strike
  • Malicious and terrorism damage



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