Protecting Your Car
Under the provision of Motors Vehicles Act all the vehicles which are playing in public places shall have at insurance policy at least to cover the third party liability as specified under the act. Personal accident cover for owner-driver is also included. While the insured is the first party, the insurance company is the second party and all others are third parties.
India has been divided into the following geographical zones depending upon the location of the office of registration of the vehicle concerned. This is for the For the purpose of rating. There are two zones defined for Private Cars.
The cities that fall under Zone A are Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi and Pune and rest of India comes under Zone B: Rest of India.
The Insured Declared Value (IDV) is decided on the basis of manufacturer's listed selling price of the brand and model of the vehicle. It is basically the depreciated value of the vehicle agreed upon by the insurer and the policyholder The IDV of the vehicle reduces with age. Own Damage (OD) premium is the cover over and above the mandatory third-party cover. Payment of OD premium entitles you to claim compensation in case of theft or damage of your vehicle due to fire, earthquake etc.
If you do not make a claim during the policy period, No Claim Bonus (NCB) is offered on renewals. Insurers reward policyholders for not making claims by giving them a discount on the OD premium up to a maximum of 50%. However, it should be noted that NCB would be allowed provided the policy is renewed within 90 days of the expiry date of the previous policy.