How to Switch from Third-Party to Comprehensive Car Insurance?

Car insurance can be a bit confusing, with lots of terms to understand. One term you might not have heard much about is the voluntary deductible. But don't worry, let’s break down the concept of voluntary car deductibles for you. Here, we'll explain what is voluntary deductible in car insurance is and why it's important for your insurance. By the end, you'll have a clearer picture of how it affects your coverage and your wallet.

Accidents are quite stressful to deal with, especially if their occurrence is not your fault. Furthermore, there are times when the third–party that caused the accident tries to ignore the responsibility of their actions. This is where subrogation can come to the rescue. To help you gain a better understanding, we look at subrogation meaning in insurance. Subrogation definition Subrogation is the legal right that you give the insurance company to sue and claim compensation from the third–party that has caused the accident. The insurer can only pursue the third–party for the compensation after disbursing the claim amount to you, the first party. Let’s understand this with an example. Suppose you get into an accident that is not your fault. When you ask the third–party to compensate you for the losses, they blatantly refuse to do so. Hence, you approach your comprehensive motor insurance provider for the compensation. After validating your insurance claim, the insurer will disburse your compensation from the own damage component of your comprehensive insurance policy. In exchange of the funds, you will have to transfer your rights of suing the third–party to your insurance company. After disbursing the compensation to you, the insurer will take it upon themselves to take legal action against the third–party in order to get back the money they owe. Hence, you do have to deal with the third–party yourself. You can just take the compensation from your insurer and let them deal with the person that caused the accident. What if someone is subrogating you? If you have caused the accident, it is only fair to compensate the other person for the damages. However, if that is not feasible, you can ask them to waive their right of subrogation. If the first party agrees to do so, you will not be pursued by their insurer for the compensation. Here it is important to remember that the waiver of subrogation is chargeable by the insurer. Thus, you might have to pay these charges in order to avoid a lawsuit against you. Things to know about subrogation in insurance Now that we know subrogation meaning in insurance jargon, let’s look at a few things you need to keep in mind: Subrogation is applicable on all indemnity insurance plans, such as health insurance plans, motor insurance plans, and property insurance plans among many others. You can sue the third–party even after exercising your right to subrogation. However, due to your transfer of rights to the insurer, you will not be compensated for the same damages again. Once you exercise your right of subrogation, you longer need to get involved in the matter. Your insurance company will resolve the issue directly with the third–party. When your insurer sues the third–party, the lawsuit is fought by the insurance company of the third–party and not the third–party themselves. The terms of the subrogation process may vary from one insurer to the other. However, a subrogation clause is mentioned in your insurance policy. This clause defines the different terms and conditions that are applicable for the subrogation process. Hence, it is better to read and understand the fine print of your insurance policy before making the purchase. Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.

Benefits of Zero-Depreciation Car Insurance A car insurance is purchased with the objective of getting compensation in case the car gets damaged in future due to accidents or natural calamities. One important factor that you need to keep in mind while filing for compensation is the depreciating value of the car. The insurance company, in the event of a claim, will only compensate you after deducting the cost of depreciation attached to different car parts. This would result in lesser compensation by the insurance company and hence higher burden on you. Therefore, it is vital to understand the benefits of zero depreciation car insurance. Understanding Depreciation Depreciation means the reduction in your tangible asset’s value owing to wear and tear. To understand what is the benefit of zero depreciation car insurance, let us look at the standard depreciation rates. According to the Insurance Regulatory and Development Authority of India (IRDAI), the following depreciation rates are applicable: No deduction on vehicle parts made of glass 30% deduction on fiberglass components 50% deduction on components made up of rubber, nylon, or plastic like airbags, tires, tubes and batteries Overall Depreciation Rate for Vehicles Age Of Vehicle Percentage of Depreciation Not more than 6 months 5% 6 months – 1 year 15% 1 year – 2 years 20% 2 years – 3 years 30% 3 years – 4 years 40% 4 years – 5 years 50% Overall Depreciation Rate for Vehicles Metallic Parts Age Of Vehicle Percentage of Depreciation Not more than 6 months - 6 months – 1 year 5% 1 year – 2 years 10% 2 years – 3 years 15% 3 years – 4 years 25% 4 years – 5 years 35% 5 years – 10 years 40% More than 10 years 50% Zero Depreciation Insurance Benefits Opting for a zero-depreciation cover, under your comprehensive car insurance policy can serve you well in situations of need. The depreciation attached to your insured vehicle will only increase with time. Say, if your insured vehicle was involved in an accident and the claim amount comes out to be Rs 50,000, and depreciation on your vehicle is Rs 20,000 and you do not have the zero-depreciation cover, the insurance company will only pay you Rs 30,000 after factoring in the depreciation costs. However, if you had opted for the zero-depreciation cover, the entire Rs 50,000 claim would be met in full by the insurance company. Factors Affecting Zero Depreciation Premium The inclusion of the zero-depreciation cover on your car insurance policy will result in an overall increase in insurance premiums. However, the long-term benefits of this cover would fully justify this higher premium outlay. Ideally, it is said to have an upward impact of approximately 15% on your car insurance premiums. Some factors which affect this cover are: Age of the vehicle Make and model of the vehicle Geographical location of the vehicle Insured Declared Value Fuel Type Exclusions in Zero Depreciation Cover While the benefits of zero depreciation insurance are aplenty, there are certain exclusions applicable to this coverage. Intoxicants: Those driving under the influence of intoxicants are excluded from the coverage during claims. Driver’s Licence: Your driver’s licence is an all-important document, which must be valid, to receive benefits through a claim. Compulsory deductibles: A deductible is a mandatory amount that you must pay, before the insurance company covers you for the rest of the damages. A zero-depreciation cover would also mandate you to pay your share. Mechanical Breakdowns: General breakdowns due to the insured vehicle’s own engine cannot be claimed through zero-depreciation cover. Conclusion: Purchasing a car is a big decision. With the right kind of add-ons to your basic policy, you will be safeguarding your own pockets. A zero-depreciation is a great add-on to have on your comprehensive car insurance policy. Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.

Are you concerned about the safety standards of cars you encounter daily on the bustling streets? The entry of the Bharat New Car Assessment Programme (NCAP) resolves this problem and is a unique solution. This initiative, backed by the government, strictly scrutinises the safety performance of passenger vehicles via comprehensive NCAP crash tests and assessments. So let’s take a detailed look and understand what NCAP is, what it means to us that there is NCAP for Indian cars and how it shifts vehicle safety standards across the nation. Bharat NCAP - An Overview: Bharat NCAP introduces an indigenous star-rating system to check the safety of cars in India. Under this program, manufacturers voluntarily nominate vehicles for crash testing based on protocols already aligned with Automotive Industry Standard 197. Passenger vehicles with up to eight seats and a gross weight under 3,500 kg are eligible for evaluation. The program aims to increase vehicle safety by analysing and scrutinizing structural integrity, child safety features, and occupant protection. This initiative might potentially help many Indians be safe on the streets, as it might avoid unnecessary accidents caused by basic structural malfunction. Ratings and Tests of Bharat NCAP: Bharat NCAP conducts crash tests to assign star NCAP safety ratings ranging from 1 to 5 Stars, with 5 being the highest. The NCAP rating system tests evaluate Adult Occupant Protection (AOP), Child Occupant Protection (COP), and the Fitment of Safety Assist Technologies. Protocols included in the tests are Front Impact, Side Impact, and Side Pole conducted at specified speeds. Ratings are based on adult and child safety criteria, with minimum score requirements for each star rating. Which Vehicles Will Qualify in Bharat NCAP? Vehicles falling under the M1 category, which can carry up to eight occupants and weigh under 3.5 tonnes, usually qualify for Bharat NCAP evaluation. This includes cars produced or imported into India, CNG, and electric vehicles. The program aims to include a wide range of vehicles to promote safety across diverse segments. How Does Bharat NCAP Work? The process begins with manufacturers nominating base models for evaluation assessment. Selected vehicles undergo crash testing at a designated facility, with representatives witnessing the tests to maintain the test’s authenticity. Upon approval, Bharat NCAP discloses and publishes ratings accompanied by certificates issued by the Central Institute of Road Transport (CIRT). Bharat NCAP vs Global NCAP: While Bharat NCAP focuses on India-specific safety challenges, Global NCAP operates internationally and sets global safety standards. Bharat NCAP ratings reflect local road conditions and challenges, while Global NCAP sticks to general international benchmarks. Both organisations employ star rating systems to denote safety levels, but with distinct criteria and interpretations. Conclusion: Bharat NCAP has emerged as an excellent initiative for promoting vehicle safety in India. As demand for safer cars rises, consumers can make informed decisions based on safety ratings so that they and others on the road can always stay protected. However, ensuring safety doesn't end with vehicle selection; it extends to obtaining comprehensive car and two-wheeler insurance for proper financial protection. Getting car insurance and two-wheeler insurance for your motorbike will keep your mental well-being safe by ensuring you are financially protected. As we applaud initiatives like Bharat NCAP, let's prioritise safety at every turn to safeguard ourselves and our vehicles. Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.