IDV of the Car
What is IDV in Car Insurance and how is it calculated? Car insurance customers might have a fair idea of the coverage and the Sum Insured given in their car insurance policy. The sum insured in the car insurance policy is known as Insured Declared Value (IDV). IDV can be described as the value of the car agreed by the customer and the insurance company prior to the issuance of the car insurance policy. The liability of the insurance company in any case doesn’t exceed the Insured Declared Value present in the car insurance policy.
Different types of car insurance
The different types of car insurance policies in India – Explained. Car insurance is the most sought after insurance product in the Indian market due to the Motor insurance act which makes at least third party car insurance compulsory to ply in the public places. Most of the people have good knowledge of car insurance in India and are able to compare and decide the premiums before taking a car insurance policy.
Sum insured enhancement or New Policy
Health insurance is the most sought after insurance product in the recent times due to the corona virus pandemic. The pandemic has made people realise the importance of health insurance. The corona virus pandemic has resulted in the loss of employment for many people and thereby forcing them to depend on their savings. Hence the importance of health insurance was understood by the general public after the costs associated with the hospitalization in case of corona were very high and people living on savings thought it would be highly difficult if the savings are spent for medical treatment and therefore preferred a health insurance plan.
What happens when your car is beyond repair
In case of a severe accident or theft of the car, most people think of making an insurance claim. If the accident is severe and the vehicle is damaged beyond repair you might think to scrap the vehicle. But it should be noted that in case of severe accident or theft of your car you can claim for insurance from your insurance company and the insured declared value of your car will be given to you minus the deductible.
Effects of claiming wrong NCB
No claim bonus is the discount provided on the own damage section of the car insurance for not claiming on your car insurance during the policy period. No claim bonus can range from 0% to 50% and increases with each claim free year. If a claim is made in any year the No claim bonus comes down to 0% and goes up to 50% if there is no claim in a span of 5 years.
How to fill the claim form?
Insurance is a service based product and the real usage of insurance can be seen at the time of claim. The service provided by the insurance company at the time of claim determines the reputation of the insurance company. Insurance is an intangible product and the service offered at the time of claim settlement has a great impact on the satisfaction of the customer. So, it is of utmost importance for the policyholder to fill the claim form correctly and ensure that all the details are submitted while filling the claim form.
How to prevent policy lapse?
Life insurance policy is one of the most popular financial planning tools which can be planned and executed for a long term. Unlike other financial tools the premium paid or the amount invested in the life insurance remains active only till the time the policy is active. In other words the coverage is available as long as the premium is paid on time and the policy is not lapsed.
Reinstatement or New Policy
Life insurance policy is a long term policy where the premium payments can be made till the end of the policy period or for a certain period. It might be difficult to maintain the premium payments throughout the policy period due to certain unavoidable issues. In case of non payment of premium within the due date, grace period is provided to the customer to complete the payment of premium. If the premium payment is not done during the grace period then the policy will be lapsed and the customer would have the option to either reinstate the lapsed policy or take a new policy.
Insurance vs Assurance
Insurance and Assurance are the most common terms used in the insurance terminology. These terms although mean the protection against certain perils are different in terms of coverage offered to the policyholder.