Understanding Car Insurance Terms

21-05-2015 / admin / 0

Planning to buy car insurance online? Then, you must know some important terminologies related to this policy if you really want to avail maximum benefits from this insurance.

  1. Insured Declared Value - IDV:

  2. Insured declared value is the maximum Sum Assured finalized by the insurance company in India which is offered on total loss of automobile or theft. In simple words, IDV is the existing market value of the covered vehicle. In case a car suffers total loss, then Insured Declared Value is the compensation which the insurance company will give to the policyholder. Generally, this amount is estimated by insurers considering depreciation cover and manufacturer’s listed selling cost. Here, policyholders should know that insurance and registration costs are not included from IDV.

  3. Roadside Assistance - RSA :

  4. This program is designed to take care of policyholder’s vehicle in an unfortunate event especially when your vehicle meets with a breakdown or an accident. Generally, insured can avail services offered under this plan only during the car insurance policy period.

  5. No-Claim Bonus – NCB :

  6. This is the advantage accrued to a policyholder for not registering any claims during the previous period of motor insurance policy online. On the other hand, if a claim is filed, then NCB is lost in the subsequent policy span.
    Here, policyholders should know that this benefit is offered to the insured and not to the covered vehicle. Even if you switch the insurer, you can still avail the NCB facility. But, you have to submit the proof of the no claim bonus gained by way of renewal notice from the existing insurance company in India.

  7. Car Insurance Add-on covers :

  8. Different motor insurance add-ons offer policyholders multifold advantages increasing the security coverage for the vehicles and vehicle owners. In some cases, buying online car insurance is not enough and several add-ons are increasingly turning a necessary part of this package. Below are some of the famous add-ons available under car insurance category:-
    a) Zero depreciation of cover
    b) Instant assistance of road
    c) Engine and electronic circuit cover
    d) Return-to-invoice
    e) No-claim Bonus Protection
    f) Personal Accident Coverage
    g) Loss of personal belongings

‘Zero depreciation’ is one of the most widely used add-on sold by insurance companies in India.

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