
NEW DELHI: Do you know that regardless of having a typical motor insurance coverage coverage, you continue to might need to bear some prices out of your pocket while you get your automobile repaired and declare for reimbursement from the insurer? Apart from, additionally, you will lose your No Declare Bonus (NCB) low cost for subsequent yr.
Take a more in-depth have a look at prices that you might have to pay regardless of having a typical motor insurance coverage coverage.
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A regular motor insurance coverage coverage consists of two parts. The primary is a third-party insurance coverage and the opposite is personal harm (OD) cowl. In India, the third-party cowl is obligatory for all vehicle-owners. It mainly covers authorized legal responsibility for harm triggered to 3rd occasion. It may be associated to bodily harm, dying, and harm to 3rd occasion property. Whereas the third-party cowl doesn’t pay for restore of injury to your automobile, the OD cowl does pay for it. Nonetheless, OD cowl is the non-compulsory a part of a typical motor insurance coverage coverage
Sometimes, in case of most OD covers, the insurance coverage coverage says, “The insurer will indemnify the insured towards loss or harm to the car insured and its equipment which incorporates automobile accident.”
This implies when the car is insured underneath OD cowl, the insurer pays for its harm. Nonetheless, the insurance coverage cowl might not pay for the entire restore price and canopy damages solely to an extent.
There are 5 prices which you might have to bear when settling insurance coverage claims:
1. Obligatory deductible: Needs to be mandatorily paid by the insured. It varies from Rs1,000-2,000 relying on the car kind. Typically, this quantity is pre-specified on the time of shopping for the coverage, relying on the car dimension, class, and cubic capability. It’s relevant in all motor insurance coverage insurance policies no matter the insurer.
2. Depreciation price: The insured worth which is often known as the Insured Declared Worth (IDV) of your car is revised yearly and is adjusted towards depreciation. By doing this the insurer excludes the loss in worth that your car has already suffered as a result of regular put on and tear within the earlier years. “It’s essential pay this out of your pocket. “It often ranges from 25-30% of declare worth,” mentioned Animesh Das, head – product technique, ACKO Insurance coverage.

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Nonetheless, you may keep away from paying this price to an extent by taking zero depreciation coverage.
3. Negligence of workshop supervisor: Once you ship your automobile for restore on the community storage, the surveyor asks for all footage associated to broken components from the workshop supervisor which helps them to settle the declare. Nonetheless, if a supervisor fails to share a number of the footage with surveyor, the insurer received’t settle the declare for the mentioned components. As an illustration, if in an accident, the windshield is broken and the workshop supervisor fails to share the image with the insurer, then you’ll have to bear the price of repairing the windshield regardless of being lined underneath insurance coverage coverage.
4. No declare bonus loss: In the event you make a declare, you will not get NCB low cost subsequent yr. “In case you do not declare in a coverage interval you then get a 20-50% low cost on the subsequent accident harm portion premium on the time of renewal, which might be Rs1,000-3,000 for a mean ₹4-5 lakh automobile,” Das mentioned.
5. Different damages: Consumables similar to engine oil, nuts, bolts, and many others. are additionally not lined in a typical motor insurance coverage coverage.
Additionally, if the insured car’s engine and gearbox is broken attributable to water ingression, there aren’t any claims for such damages.
What you need to do
Despite the fact that you would possibly find yourself paying some portion of the declare from your personal pocket, this can be very vital to have a complete motor insurance coverage coverage.
To minimise the price, you should get in contact with the workshop supervisor and insurance coverage surveyor whereas your automobile is being repaired. It is very important take the record of injury components from the workshop supervisor and tally it with the insurer whereas settling of the declare.
Apart from, you should purchase add-ons similar to engine safety cowl, consumables cowl, zero depreciation, return of bill cowl, and many others., which might help scale back your bills.