Every individual and families have a dream of buying their own car or vehicle and when you buy the vehicle of your choice, the next but immediate thing you need to buy is the vehicle insurance, all vehicles must have a valid insurance (at least a third party insurance)according to the Srilankan law and that’s because the number of accidents is ever increasing, as per the statistic released by the ministry of transport and civil aviation, the number of accidents in 2017 amounts to 37732 and 3101 deaths occurred due to accidents. Thus obtaining vehicle insurance is a must to make sure that accidents and damages will not affect your finances.
Buying a car insurance policy is never challenging, you just need to contact the insurance provider and give the necessary information to get the policy, most of us want the lowest possible premium and only some people look for the covers, and most cases the insurance document is just a piece of paper or a plastic card till you meet with the accident. But the real problem comes when the claim process gets tough and we receive lots of email seeking advice for motor insurance claim rejections. Read below short read to understand the reasons behind a claim rejection.
Let’s understand few key things which are very important and can save tons of money when it comes to accidents and claims, normally these key things are avoided at the time of purchase of the vehicle insurance policy and each of these can be very important when you meet with an accident.
No claim bonus
the sexy word in vehicle insurance, No claim Bonus or NCB, when you don’t make any claims in your first year of insurance, NCB will be granted to you and it will reduce your next year premium, and it will continue to increase in upcoming years till you meet with an accident and make a claim, usually NCB starts with 10% and grow up to 50% to 60%.
Sometimes, repairing a small accident with your own money might save you a big renewal discount, so make sure to know the available NCB and think twice before claiming the insurance, however, make sure to intimate the accident and follow the due diligence to avoid unnecessary problems. also, remember to close the claim to avail the NCB.
Daily transport allowance
Some insurance companies cover your daily transport cost up to a certain amount when your vehicle is in the garage, some companies provide a replacement vehicle, both these benefits are given for a certain number of days and subject to conditions, make sure to understand the clause before you opt for the service to avoid unexpected expenses.
Most of us hear this word when it comes to claims stage only and most don’t know the meaning of excess, different types of excess applicable for insurance policies and its depends on vehicle type, usage, the age of vehicle and claims history.
For an example, assume, hiring purpose insurance cover has an excess of 10,000 rupees, it means, if the vehicle meets with an accident, you will have to bare 10,000 rupees and the balance will be paid by the insurance company.
Some insurance policies cover the towing or car carrier cost provided the requirement arises due to an accident, only a limited amount is allowed as towing charges and some insurance companies have appointed agents to provide the service, ensure to know the limitations and appointed agents, this will help you to have peace of mind when you claim the cost.
The law requires each and every accident to be reported to the nearest police station, even if you and the other party are in agreement, the requirement of a police report will be informed to the client when the accident is intimated to the insurance company and make sure to report if you are asked to do so. When it comes to claims, police reports play an important role.
Medical bills and passenger cover
Most of the insurance policies have an inbuilt cover for personal and passenger Injuries sustained during an accident, typically, it will cover the partial disability, death, medical expenses and hospitalization, of course, there will be cap amount and subject to conditions, make sure to know the available cover for the driver and passenger.
Vehicle accidents are very common nowadays due to increasing number of vehicles and various factors, however, buying an appropriate vehicle insurance policy can keep you less worried when you meet with an accident, the main reason to have a vehicle insurance is to cover your risk of unforeseen expenses and to have peace of mind, it’s not just buying an insurance policy to drive your car, it’s a thoughtful decision to have your risks covered and save you money.