There are many aspects of insurance policies that most Indians are unaware of. The information doled out across various media forms, digital or print, has taught people the need to compare before buying the same. The ubiquity of internet has made it possible to compare car insurance online in India, while also propelling vehicle owners to pay for motor insurance online. Most people understand the basics of premium payout and inherent benefits of motor insurance policies. However, many do not know when to file a car insurance claim and when to avoid it.
Many policyholders are of the opinion that having their car insured ensures their right to stake a claim to cover in case of unforeseen damage. Though it may seem wise to direct the insurance company to pay the expenses incurred in repairs, it may have a negative effect on the claim history of the policyholder and, hence, higher premium payout in future.
In most of the accidents involving car collisions, the damages are minor and hence can be paid out of one’s own pocket. As one buys insurance to mitigate risk, it is understood that the concept of insurance has a lot to do with the risk factor. Terms such as no-claim bonus (NCB) come into play only when one does not claim insurance during the policy period, and therefore, avails discount or rebate on premium paid for own damage car insurance. Filing damage claim for minor issues results in zero no-claim bonus and consequent higher premium payouts in future.
In a nutshell, one needs to keeps certain factors in mind including the quantum of loss suffered, extent of voluntary deductibles and effect on NCB and consequent premiums during policy renewal before proceeding to file a car insurance claim.
Recommended Reading: Two Wheeler Insurance: Some Useful Tips And Facts
While comparing, policyholders do not focus on factors like percentage of compulsory deductibles fixed by each insurer, the rates of discounts that the insurer gives in case the policyholder chooses the no-claim bonus add-on cover, the cost of NCB protection cover, etc. It is necessary to read the details given in fine print while buying motor insurance online. To choose among the policies offered by various insurers, it is wise to compare car insurance in India.