Step 1: Know your Motor Vehicle Insurance Value
Insurance value is the main part of motor insurance. It is the value of your vehicle that you will get in case of Total Loss Claims (TLC). Supposed you parked your vehicle somewhere outside your house while going for a shopping or some official works. When you returned and found that your vehicle have been stolen or crushed by some other property like..crane, truck, demolished by the wall of the building nearby or exposed by fire. In this case you will not be able to get it repair or reinstate in its previous condition. This is the situation of Total Loss, where it is not possible to get the vehicle back. In these kind of cases you will be entitled to get a claim amount upto the insured value of the vehicle as mentioned in Insurance Document.
Step 2: Know your rate of Own Damage Basic Cover
Own damage is the first part of motor insurance coverage which is used to define cover for the Motor Vehicle. It covers the unforeseen and accidental damage to your vehicle. The premium charged for own damage means it is covering your vehicle.
As per IRDA guidelines there are pre-fixed rates that every insurer used to calculate basic premium for Own Damage. The rates fixed by IRDA are based on Zone, Age and Cubic Capacity of the vehicle.
Zone : There are 3 zones A, B & C.
Private Motor Vehicle :
Zone A : Metropolitan cities comes under Zone A
Zone B : Rest of India except Metropolitan cities comes under Zone B
Commercial Motor Vehicles :
Zone A : Metropolitan cities comes under Zone A
Zone B : Capital of every Indian State comes under Zone B
Zone C : Rest of India except Zone A & B comes under Zone C
Age : There are 3 Age Bracket Upto 5 Year, 6 to 10 Years and Above 10 Years
Cubic Capacity :
Two Wheeler : Upto 75 CC, 76-150 CC & above 150 CC
Private Car : Upto 1000 CC, 1001 -1500 CC & above 1500 CC
Gross Vehicle Weight (GVW) :
Commercial Vehicles : Upto 7500 Kgs., 7,500-12,000 Kgs, 12,000-20,000 Kgs., 20,000-40,000 Kgs & Above 40,000 Kgs.
Step 3: Know your premium of Third Party Liability
In India, it is mandatory to have a TPL cover if you own a car.
Third Party Liability (TPL) covers any damage to a person or property by your insured vehicle that results in financial loss or loss of life to the said person or property.
But TPL does not cover expenses borne by you for any repairs, so it’s always prudent to opt for a policy that covers losses caused by damage to your own vehicle as well.
The TPL premium depends on the car capacity and is issued by the Insurance Regulatory Authority of India (IRDAI).
