Unlock the road to secure celebrations: A comprehensive guide to motor insurance this festive season

0
143


Are you gearing up to bring a new vehicle into your life, or is it time to renew your motor insurance this festive season? Understanding the ins and outs of motor insurance is crucial, considering the dynamic landscape of the Indian insurance market.

The rising tide of motor insurance
The non-life insurance industry reported a premium of Rs 18,196.0 crore growing by 18.1% year-on-year (Y-o-Y) in May 2023, meanwhile, the first two months of FY24 continued to register double-digit growth. This growth was driven by health and motor insurance, as highlighted in a recent report by CareEdge ratings.

The India motor insurance market size is estimated at INR 0.90 trillion in 2023, and is expected to reach INR 1.53 trillion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 11.16% during the forecast period (2023-2028). India is positioned to become the sixth-largest insurance market in the next 10 years supported by regulatory push and rapid economic expansion, as per a report by the Swiss Re Institute.

This growth can be attributed to a host of socioeconomic factors, including embracing of digital tools of purchase and payments by a wider section of the Indian population, motor insurance providers partnering with automobile companies and financial service providers to penetrate in the ecosystem and tap into underserved demographics.

The power of festive timing: A surge in motor sales and motor vehicle insurance
India’s passenger vehicle sales grew 26.7 per cent in the fiscal year 2022-23, as chip shortages eased and demand for sport utility vehicles (SUVs) surged, as per data released by auto industry body, Society of Indian Automobile Manufacturers (SIAM). Auto sales plays a pivotal role in assessing India’s private consumption, contributing more than 50% to the calculation of the nation’s economic growth. This mirrors the rising aspirations of India’s growing and ever-morphing middle class.

Indeed, buying a car has always been perceived to be a significant milestone for the Indian middle class, blending the value of utilitarianism with prestige. However, beyond the make, model and mileage there’s yet another critical factor that dominates the surge in motor buying sentiments: timing. In India’s high-powered auto market, the timing of your car purchase can significantly influence the deal you secure. And, as expected, there are several nuances, subtleties and sentiments associated with deciding upon the perfect month to bring home the dream car.

It has been commonly observed that the period between Dussehra and Diwali, lasting until the merry season of Christmas and coinciding with the year-end deals, witnesses an increase in motor insurance sales. Consequently, the festival season gives a boost to motor insurance policies as well.

Since buying a new car or two-wheeler holds much emotional significance for buyers and their families, symbolising success, growth and prosperity it is only wise to cement this auspicious moment by securing your vehicle with a motor insurance.

Understanding Various Types of Vehicle Insurance Coverages
When it comes to vehicle insurance, a clear understanding of its diverse coverages is indispensable. There are three primary categories to comprehend: third-party, own damage, and comprehensive coverage.

  • Third-Party insurance:
    Under the Motor Vehicle Act 1988 in India, third-party insurance is the minimum legal requirement. This type of insurance safeguards you against damages and injuries you might cause to others while driving. Specifically, it covers your financial liability for third-party property damage, physical injury, disability, or death. It also takes care of legal expenses that may incur due to the incident.
  • Own damage vehicle insurance:
    Own damage insurance covers accidental damages that occur while your vehicle is in use or parked. It includes repairs or replacement costs for your vehicle parts in case of damages, theft-related losses, and damages caused by natural calamities like floods, earthquakes, or storms. Additionally, it covers vandalism, fire, and other man-made disasters, ensuring comprehensive protection for your vehicle.
  • Comprehensive vehicle insurance:
    Comprehensive insurance offers peace of mind by combining third-party liability coverage with own damage coverage. This all-inclusive policy provides extensive protection for your vehicle against a wide array of risks, including accidental damages, theft, natural calamities, and man-made disasters like riots and vandalism. It ensures protection for your own vehicle as well as damages caused to third parties.

A prominent example of comprehensive vehicle insurance can be found in Reliance General Insurance’s offerings: the Reliance Private Car Package Policy and the Reliance Two-wheeler Package Policy.

The Reliance Private Car Package Policy provides extensive insurance coverage, protecting your car against a wide range of risks and damages. In addition to covering third-party liabilities, it includes repair costs for accidental damages, losses due to theft, damage caused by man-made disasters (such as riots and vandalism), and natural calamities (like floods, earthquakes, or storms). Moreover, you have the option to enhance your coverage with various add-ons, tailoring the policy to your specific needs. For instance, the ‘Pay As You Drive’ add-on allows you to pay based on the number of kilometres you drive, while the ‘Engine Protector’ cover compensates for expenses incurred in fixing indirect damages caused by water ingression or leakage of lubricating oil, covering Engine Parts, Differential Parts, and Gear Box Parts.

Under the ‘EMI Protection’ Cover, if your car is being repaired in one of Reliance’s network garages and is retained for more than 21 days, this cover will pay for your Equated Monthly Installments (EMI) for up to three EMIs, providing compensation for the inconvenience. Additionally, the ‘Nil Depreciation’ Cover add-on safeguards you from the impact of depreciation on your car’s insurance coverage, allowing you to receive full coverage without deductions for depreciation. Furthermore, the ‘Return to Invoice’ Cover reimburses you for the difference between the Insured Declared Value (IDV) of your car and the invoice value in case of a total loss or theft claim.

Similarly, the Reliance Two-wheeler Package Policy offers coverage to your bike against different types of damages, total loss, and theft. The Comprehensive Two-wheeler Insurance Policy is a combination of a Third-party Liability Cover and Own Damage Cover for Bike (OD), ensuring all-round protection. To enhance your coverage, various add-on options are available.

The ‘Helmet Cover’ add-on provides an allowance toward replacing a damaged or destroyed helmet of the same type and model in the event of an accident involving the insured vehicle. The ‘Nil Depreciation’ Cover, also known as Bumper-to-Bumper cover, ensures you receive the entire claim compensation without any deductions for depreciation. Additionally, the ‘Daily Allowance Benefit’ add-on offers an allowance limit of up to ₹5,000/day if your vehicle is in an authorised network garage for more than 2 days for repairs.

These are just a few examples of the add-on covers available. You can choose from a variety of options based on your preferences, allowing you to customise your coverage according to your needs.

Why invest in a comprehensive motor insurance
Acquiring your dream car or two-wheeler is a significant milestone, bringing you closer to fulfilling your aspirations and bestowing a sense of pride and independence on you and your loved ones. However, vehicle ownership entails not only selecting the right design, model, and features but also considering the financial responsibilities it entails, such as maintenance and safety. This is where motor insurance plays a vital role.

Motor insurance for your car or two-wheeler acts as a shield against unforeseen road incidents. While adhering to safety regulations and driving cautiously is crucial, accidents, theft, or natural disasters can still catch you off guard. These unexpected events can result in substantial medical and repair bills. Investing in a comprehensive motor insurance policy provides peace of mind, security, and protection against emergencies, accidents, and financial losses.

As the festive season approaches, whether you’re welcoming a new vehicle into your life or your motor insurance renewal is due, don’t delay this prudent decision. It will add an extra layer of security to your celebrations, ensuring they shine brightly with safety and peace of mind.



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here