Basic Auto Insurance Terminologies Everyone Should Know
Basic Auto Insurance Terminologies
For every vehicle plying on Indian roads be it car, bike, truck etc. as per the law. Whether you drive it or not your vehicle must be insured in order to cover any damage caused to other people or your own vehicle. Although costly, having it can save your money in a big way during an emergency such as damage, theft etc. as per the coverage provided by the auto insurer. Despite of using vehicle insurance many insurers are not aware of basic auto insurance terminologies. Listed below are such terms in an easy to understand language:
No Claim Bonus (NCB): A percentage discount given to policy holders at the time of renewal for not having made a claim during the year. Normally in India, insurers offer a discount ranging from 15%-35%. This straight away reduces your annual premium. However most important to note is that, NCB is not offered in the upcoming year when your vehicle is claimed in the previous year. But as per rule, if you are buying a new vehicle then you can transfer NCB from your old vehicle to the new one provided the policy holder is same for both. However while applying for a transfer, make sure you submit all the documents and details of your new vehicle to the insurance provider so that smooth transfer can happen.
Approved Garages: Repair workshops that are authorised by the motor insurer to carry out repairs as per the approved insurance claims.
Online Purchase: Facility provided by insurers that makes motor insurance purchases convenient for shoppers.
Zero Depreciation: Special add-on that protects new car owners from depreciation shocks during insurance claims. Applicable for only 3 years of ownership.
Insured Declared Value (IDV): The maximum amount that can be disbursed to the insured in the event of the vehicle being written off.