Tag: Motor Insurance

We buy motor insurance to claim when there is damage. But when we claim, the premium will be higher during renewal. This is why people tend to hide claims history upon renewal.

But hiding claim details will not help. Because there is a common database with IRDA where the motor claims from all the insurance companies are registered.

I got a thought if insurance companies can directly check the database then why they impose this on the insured to declare. The problem is, the database is not updated on a daily basis. It is updated periodically. All the insurance companies have to send their motor claims details to IRDA. The data from all the insurers are consolidated and placed in IIB (Insurance Information Bureau). Hence it will take up to 2 months to get complete details on IIB for that particular vehicle. This is why the insurance company cannot verify the claims history before the issuance of the policy itself. But within 2 months the company will verify and send a notice to the insured upon tracing a miss-representation or non-disclosure. The insured has to then pay back the discounted amount of NCB to the insurance company to continue the policy.

In case there is a claim before tracing it from the IIB, it will be verified with the previous insurance company and the claim will be disqualified if there is a misrepresentation or non-disclosure. Even, if there is a claim under Third Party Liability, it will be disqualified.

Sometimes insured will not claim and get it repaired at his own cost. Insured will do so when the claim amount is lower than the sum of deductible and the eligible NCB at the time of renewal. Such repairs will not get registered into the IIB database. Well, this cannot be counted as non-disclosure or misrepresentation.

Will Car Modification Impact Vehicle Insurance Claim Settlement

Will Car Modification Impact Vehicle Insurance Claim Settlement?

Car modifications are gaining traction in India and can be seen mainly in youngsters who want to alter their cars per their requirements. Car modifications are quite common in Western countries, but when it comes to India, these are pretty new. As per the Motor Vehicles Act, every Original Equipment Manufacturer (OEM) vehicle should be […]

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How to Lower Your Vehicle Insurance Premium Without Sacrificing Coverage

How to Lower Your Vehicle Insurance Premium Without Sacrificing Coverage?

Vehicle insurance is mandatory in India without which you might have to pay a fine or face imprisonment or both. Vehicle insurance has two sections: Own damage and Third party. Third party premium is decided by the Insurance Regulatory and Development Authority of India and is the same across all insurance companies. On the other […]

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Don’t Get Flooded Out: Why Trying to Start a Waterlogged Car Can Sink Your Insurance Claim

Finally, you think to yourself. God seems to have answered your prayers. Rains are here.  It has rained through the night. The next day, you get into your waterlogged car and try to start it.  Keech!!! The engine makes a screeching noise, but your car won’t start. You try a second time and your engine […]

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The Revolutionary Impact of Artificial Intelligence on Motor Insurance

The Revolutionary Impact of Artificial Intelligence on Motor Insurance

Artificial intelligence (AI) has emerged as a pervasive force, reshaping industries across the globe. In the realm of insurance industry, particularly motor insurance, AI is catalyzing transformative changes. Let’s delve into the multifaceted role of AI in motor insurance, scrutinizing its influence on underwriting processes and claim settlements. Understanding Artificial Intelligence: At its core, artificial […]

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Navigating the Salvage Deduction Conundrum in Motor Insurance: A Customer’s Guide

In the world of motor insurance, where promises of comprehensive coverage and peace of mind often collide with the unexpected, the curious case of salvage deduction leaves many policyholders scratching their heads. For the uninitiated, salvage is the value of damaged or destroyed property that can be recovered and sold after an insurance claim has […]

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Importance of Declaring Claims Details in Motor Insurance

Importance of Declaring Claims Details in Motor Insurance

We all buy motor insurance to have financial protection in case our vehicle is damaged in an accident. However, making a claim can often lead to higher renewal premiums with our insurer. This is why some people are tempted to hide past claims from their insurance company when renewing their policy. But as we’ll explore […]

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Take the Zero Depreciation Add-on in the First Year

Should You Take the Zero Depreciation Add-on in the First Year?

Many of us are wondering whether it is relevant and important to take zero depreciation cover in the first year for the vehicle. Depreciation refers to the reduction in the value of the asset over a period of time due to the general wear and tear of the asset. Depreciation could happen both due to […]

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Insurance Agent and Insurance Broker Commission Structure in India

Insurance Agent and Insurance Broker Commission Structure in India

The Government of India’s Insurance Regulatory Development Authority decides the insurance agent’s and insurance broker’s commission structure in India. The maximum commission in the general insurance business is paid in the motor insurance segment, whereas the minimum is paid in the group health insurance segment. IRDAI has set a cap on the commission payable under […]

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The Importance of Comprehensive Motor Vehicle Insurance Coverage

The Importance of Comprehensive Motor Vehicle Insurance Coverage

Motor Insurance: Motor insurance is an agreement between an insurance provider and the insured policyholder, in which the insurer agrees to compensate the insured for any loss caused by the insured in the event of an unforeseeable incident in exchange for a small sum known as the premium. The insurance of motors has been made […]

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Common Mistakes to Avoid When Buying Vehicle Insurance

5 Common Mistakes to Avoid When Buying Vehicle Insurance

Vehicle insurance compensates the financial loss incurred by the insured due to an unforeseen incident causing damage to the vehicle and third-party liability, which includes bodily injury and property damage to third parties due to the insured vehicle. Motor insurance comes in two parts. The first part covers the insured’s liability towards bodily injury and […]

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