|Insurance Buying Tips #1: Shop smart|
|When looking for insurance, your No. 1 priority should be to find adequate coverage. Price is important, but you’ll want to determine what kind of coverage you need first. Then you can fit that coverage into your budget and determine which carrier can provide you with the most comprehensive policy for your situation. You may be tempted to choose insurance with the lowest price tag, but if you don’t have enough coverage (or the right kind of coverage), you will see less financial benefit when it comes time to file a claim.|
|Insurance Buying Tips #2: Look for discounts|
|Once you evaluate your coverage needs, factor in your budget and find ways to save. Ask your insurance agent if there are any discounts on your coverage. Often, carriers offer discounts for things like paying your policy in full, staying auto accident-free or, if you’re in school, getting good grades. You also can save money by “bundling” multiple policies, such as purchasing a home and auto policy from the same carrier.|
|Insurance Buying Tips #3: Fill in the gaps|
|An average policy will cover the basics, but you may need to add extra coverage to meet your unique needs. For instance, you may have items like electronics or a nice piece of jewelry that would be financially difficult to replace, even with the assistance of your average renters or homeowners policy. You may want to add additional coverage for these items.|
However, there are certain facts that you may not know about personal accident policy in car insurance. Let's take a look:
Basics of Insurance
Before anything else, it's important to understand that car insurance is mandatory for all vehicles plying on road, as per the law. There are two types of car policies in India: third party liability policy and comprehensive car insurance policy.
In third party liability, the damages caused to a third party in case of any accident or collision is covered. This is the mandatory component in car insurance as per law.
A comprehensive policy is a big umbrella in which you can cover all the liabilities arising from damage to the car. This policy covers the vehicle from damage caused due to theft, vandalism, fire or riots too and includes third party liability coverage.
A comprehensive car policy has four basic aspects:
- Covers damages caused to own car
- Covers damages caused to third party
- Personal accident covers for owner-driver
- Insures parts and accessories of the car
- Personal accident coverage is one of the most important aspects which can be very useful in a times of crisis.
Facts You Didn't Know about Personal Accident Cover
1) Available in Third-Party Policy:
This cover is available in the third-party liability policy at a fixed premium of Rs. 50 (excluding taxes) and at a fixed sum assured of Rs 2 lakh. It covers only the owner-driver of the car, provided the owner-driver of the insured car has a valid driving license.
2) Doesn't Cover Paid Driver / Passengers
A personal accident cover doesn't cover paid driver or the passengers travelling in your car. They need to be covered with separate riders under a comprehensive car insurance policy.
3) When you take a comprehensive policy with a personal accident insurance add on, the premium will be divided into three parts between third party liability, damage to own car and personal accident coverage. However, the discount of no claim bonus will be available only on the premium paid for own damages component.
4) After buying a policy, the policyholder should recheck the name, vehicle number and also, read the fine print of terms and conditions so that he will not have last minute surprises. In case of any issues, the policy holder can return the policy during the free look in period. Free look in period is within 15 days of receipt of policy document.
|Insurance Buying Tips #4: Purchase life insurance—you aren’t too young|
|Life insurance is essential, no matter how young or old you are. And for millennials, buying now may be a smart move because it’s cheaper to buy a life insurance policy when you’re young and healthy. This kind of insurance can help your family cover unexpected costs in your absence, including student loan debt or a mortgage, in addition to end-of-life costs. And if you have kids, a life insurance policy can also support their education or childcare expenses. Additionally, every millennial should consider long-term disability coverage, which helps you stay afloat financially if an accident happens and you become disabled and unable to work.|
|Insurance Buying Tips #5: Talk to an independent agent|
|An independent insurance agent is an essential resource when purchasing insurance—especially if this is your first time. An independent agent works with multiple different carriers, which is different from captive agents who can only sell insurance from the carrier they work for. Working with an independent agent can help make sure that you are getting the best coverage, for the best price. You’ll also benefit from independent agents’ insurance knowledge; they know how to talk you through your options and actually explain what each policy includes. An independent agent will make sure all of your assets are covered, help you find discounts or other ways to save, and be a valuable resource as your life changes and your insurance needs change, too.|
|Insurance Buying Tips #6: Only buy insurance to maintain your existing standard of living|
|You don’t need insurance for events that won’t severely strain your finances. Start with your basic needs (home, auto, business), then work your way to include other needs (cyber, liability). You can always obtain coverage later for something if you change your mind. You can minimize your risk and maximize your savings by buying insurance that won’t cause you to break the bank.|
5) In case an accident occurs, the family members should firstly inform the insurance company, who can assist them a step-by-step process to claim their losses. Also, they help you out in claiming for the accidental coverage which is included in comprehensive policy.
6) The Insurance Company offers Personal Accident coverage to the owner-driver while not only driving but also while mounting or dismounting the vehicle or even travelling as a co-passenger. The only clause they have is that the event should occur within a period of 6 months of the accident.
Features Covered in Personal Accident Cover
- Death Cover – In the ill-fated event of death of the insured due to an accident, the entire Sum Insured will be paid to the nominee.
- Permanent Total Disability Cover – In the disastrous event of permanent total disability of the person due to an accident, the insurance company will pay the entire Sum Insured to the person.
- Permanent Partial Disability Cover- In the event of permanent partial disability of the person due to an accident, the insurance company will pay a certain percentage of the Sum Insured, depending on the extent of disability.
- Temporary Total Disablement Cover- Weekly Benefit for accidents resulting in home confinement up to a limited number of weeks.
- Education Grant – In case of death or permanent total disability, the insurance company will pay a contribution for the benefit of dependent children towards their education, depending on the terms and conditions of the policy coverage.
- Transportation of mortal remains – In an extreme situation of accidental death, the insurance company will pay the nominee a certain sum towards carriage of the mortal remains to home.
- Accident Hospitalization Cover – Hospitalization overheads due to Accident resulting in claim for Death / Disablement.
All insurance companies offer personal accident coverage on car insurance. If you get your car insured from Bajaj Allianz car insurance company, the following advantages can be availed:
- Coverage of Rs.2 lacs to the policy holder
- Can include the paid driver for coverage of Rs.1 Lac
- Option to cover other passengers travelling in the car
- Compensated with coverage amount in case of permanent disability or death caused due to accident
With the increase in the number of general insurance service providers, it gets tough for a lay man to opt for the best insurance policy which suits his needs. An insurance policy can be bought by an insurance agent or dealer or online.
|Insurance Buying Tips #7: Ask your insurance provider what the policy doesn’t cover|
|Every insurance policy has perils that are not covered by your policy. These perils are referred to as “exclusions”, and every policy has them. Ask your insurance provider to explain the exclusions in your policy to avoid discovering what they are once you incur damages or a loss.|
|Insurance Buying Tips #8: Consider bundling several policies with one insurance carrier|
|here may be value in bundling several policies with one insurance carrier. If you’re looking to insure multiple vehicles or obtain multiple types of business coverage (e.g., liability, property, cyber), then you may want to consider obtaining coverages under one insurance provider who carries multiple products, and who may be able to offer you multi-policy discounts or loyalty programs.|
|Insurance Buying Tips #9: Review your insurance needs on a yearly basis|
|As your needs evolve, so will your insurance policy. Maybe you’ve acquired a new vehicle since obtaining auto insurance for your primary vehicle, or started operating your business out of your home, or experienced a cyber-attack during the year… Whatever the change(s), you’ll want to make sure you’re covered for any new risk exposures. Talk to your insurance provider to stay on top of your insurance needs.|