Team Turtlemint, Author at Turtlemint

Diwali and insurance – a perfect fit

November 7, 2018May 11, 2021 Team Turtlemint

Diwali is one of the biggest and the most widely celebrated festivals of India. It is a festival which is celebrated with lights, sweets, gifts, crackers and merriment. The festival is a week-long affair where every day has a special significance.

Dhanteras, Choti Diwali, Diwali, Bhai Dooj all these days are celebrated with family and close friends. There is merriment, fun, food and celebration all around.

However, we face few risks of our health and property which cannot be avoided during this fun-filled festival but surely can be reduced or controlled if we all put in our efforts individually. Let’s understand each of them and measures you can take the reduce these risks.

Air Pollution

The quality of air worsens over Diwali as crackers are burst. In fact, States in north India report very low visibility due to smog created by high air pollution levels during and after Diwali.However, Diwali is not just responsible for the low air quality alone but there are multiple reasons like agricultural stubble burning in Punjab, vehicle emissions, coal-fired power plants, etc. However, since the air quality dips around Diwali, it has been traditionally been blamed for the same.

What you can do to help?

Well, there are multiple things that can be done at an individual level and if everyone contributes their small bit, the overall air quality will surely improve:

1. No Smoking: Yes, it pollutes the air around as well as your lungs with NO benefit at all. So, yes reducing tobacco consumption can be of significant help to the society as well as your family and yourself.

2. Walk: If the distance isn’t too much instead of taking your vehicle out. It will help in bettering the air quality with lesser vehicle emissions and improve your overall health and reduce petrol bills as well!

3. Plant trees in your house and surroundings!

Noise Pollution

The loud crackers also create noise pollution and result in mental anxieties and neurological disorders among individuals.

What can you do to help?

1. Reduce usage of machines which make a lot of noise like the mixer-grinder, juicer, etc.

2. Do not burst crackers! Even though it might be a tradition, there is no benefit in burning them. Stick to diyas or candles to brighten up your Diwali!

Fire and burns

Crackers and diyas, which are a staple of Diwali, have fire hazards. They pose a threat of causing fire to your home, vehicles and other possessions. Similarly, your body is also exposed to the high risk of burns associated with bursting crackers.

What can you do to help?

1. Stick to diyas instead of crackers this Diwali

2. Do not wear silk or synthetic clothes which lighting the diyas. Stick to cotton clothes as they are lesser prone to getting burnt.

Increased road accidents

Accidental cases also increase during Diwali either due to crackers or air pollution levels which cause low visibility resulting in road accidents.

What can you do to help?

1. No drinking and driving under any circumstance!

2. Avoid travelling during the evenings when the visibility is low

These small steps will surely contribute to a healthier environment in the long run!

Lower your risks during Diwali and increase the Enjoyment!

These risks are very common and relevant to your Diwali celebrations. You don’t have to cut down on your festive spirit. After all, what is Diwali if not mirth and happiness? What you could do instead is be careful against them.

It’s also good to protect yourself your family member and your hard-earned assets with the following cover/insurance.

Buy insurance – Insurance plans fit in perfectly if you want to observe precautions during Diwali. Though you might take other necessary precautions, accidents are uncertain and can happen even after observing the stringent of safety rules. When you have an insurance plan covering the expected contingencies, you, at least, don’t suffer from a financial strain. Here’s how different insurance plans help you in making your Diwali safe –

Health insurance – health insurance plans take care of your medical bills if, God forbid, you do face health issues during Diwali. The plans cover burns, respiratory ailments, etc. which are associated with Diwali. You also get coverage for ambulance costs incurred in taking you to the hospital. Moreover, there are Dengue specific plans to cover dengue and its related costs.

Motor insurance – your vehicle is prone to catching fire or causing accidents (due to low visibility) during Diwali. You should, therefore, buy a comprehensive motor insurance policy. The policy would cover any third party liability if poor visibility injures any individual or damages someone’s property. Moreover, if your vehicle catches fire and is damaged, the policy would pay for the financial loss you suffer.

Home insurance – home insurance plans help in protecting the financial loss suffered if your home or its contents are damaged by fire or related perils. In India, the penetration of home insurance is quite low. However, the policy provides a wide scope of coverage at very minimal premium costs. Since the possibility of fire is high, your house and its contents face a threat. If you buy a home insurance plan you can secure your home and its contents from the financial loss which would incur if there is a fire.

Taking the right measures with the protection of insurance plans will definitely make your Diwali safe, filled with happiness, joy and a memorable festival with your family and friends.

Know the paperwork involved when transferring vehicle ownership

October 30, 2018May 11, 2021 Team Turtlemint

Selling your used car or bike in the pursuit of a new one is not uncommon. Almost every vehicle owner sells his used vehicle when buying a new one. When the vehicle is sold to another, its ownership also changes. The buyer becomes the new owner. A lot of paperwork is involved in transferring the ownership and insurance policy to the new buyer. Do you know the paperwork involved when transferring ownership of your car or bike?

Many don’t and that’s why transferring ownership seems like a difficult process. In reality, it is not if you know about the documents involved. So, here is a car or bike ownership transfer documents checklist –

Registration Certificate

The primary and the most important document is the Registration Certificate of the vehicle. The RC book needs to be transferred to the new owner. The new owner would then verify the vehicle details, submit the RC book in the RTO and get the ownership details changed.

Insurance certificate

Every vehicle has an insurance cover. This cover also needs to be transferred to the new buyer when the vehicle is being sold. The car or bike insurance transfer process is easy. To transfer the ownership of the insurance policy, you can send a request to your insurance company for the same. The insurance company would verify all the details and transfer the ownership of the policy in the name of the buyer. You can, however, retain the accumulated no claim bonus. This bonus can be transferred to the insurance policy of a new vehicle which you buy in place of your old one. To transfer the bonus, avail a No Claim Bonus Certificate from your insurance company. The certificate can then be submitted at the time of buying a new policy for transferring the no claim bonus of the old policy.

Read more about no claim bonus in car insurance

Other forms required

To transfer ownership, you are also required to avail specific forms from the RTO, fill those forms and submit them along with the RC book to change the ownership details. The forms required include the following –

Form 28 which is the No Objection Certificate
Form 29 which is the Transfer of Ownership form
Form 30 which notifies the RTO of your intention to transfer your vehicle
Road tax card

Road tax is paid on every vehicle. When transferring ownership, you have to give the road tax card to the buyer. The card contains the details of the road tax paid on the vehicle. The buyer then submits the road tax card to the RTO to complete the transfer formalities.

PUC certificate

PUC (Pollution Under Control) certificate is required for all vehicles which are older than six months. Your vehicle’s PUC certificate should be handed over to the buyer. If the certificate is valid, the buyer can use the certificate for future. If the certificate is invalid, it needs to be updated either by you or by the buyer.

These are the main set of documents which are required at the time of selling your vehicle to another individual. Have all these documents handy to avoid hassles with paperwork at the time of sale. There are some points which you should remember though. These include the following –

The RTO should be informed at all times when the transfer of ownership is taking place
Your original insurance policy document is also important. Though the insurance certificate does the work, keep your original policy handy
The buyer’s identity proof and other KYC documents would also be required by the RTO and also by the insurance company to complete the transfer. If the buyer’s documents are not available, ownership would not get transferred. So, ensure that the buyer has all his documents ready.

Keep these points in mind, have all the documents handy and transferring ownership of your vehicle would be a piece of cake.

This article has been contributed by Moneycontrol team

Find out how insurance helps when selling a used car

Read more about RTO forms for registering a vehicle.

Life insurance in your 30s

October 26, 2018May 11, 2021 Team Turtlemint

In your 20s, everything is shiny and brand new, filled with hope and you are open to experimentation. By your 30s you are starting to settle down. Obligations and responsibilities –a new family, new home, bigger car – start to take up all your time. You may even have started semi-permanently settling in a job or got a couple of promotions. All this starts changing your thought process and brings to the forefront the need for financial planning, especially if you are the sole bread earner in your house. If you bought a life insurance policy in your 20s, you probably went for a lower cover, but now, with increasing financial obligations and dependants, that cover might start to seem rather inadequate. And if you had put off buying a life cover in your 20s, then 30s is the best time to start considering it.

Why life insurance and why now?

When you start a family, the biggest worry that plagues you is their financial dependence after your death – basically income replacement. You don’t want them to go look for alternatives to your income or leave them without some sort of cushion that would make their life a whole lot easier. Your untimely death could put a wrench in all your best laid plans that may include anything from children’s higher education to owning your mortgage-free home. Life insurance serves well as that cushion. In fact, it is one of its more obvious benefits. But what it also helps in is in providing ‘living benefits’. Living benefits refer to the returns that you may receive when you are still alive. These returns can be utilized to fund your many pet projects, like home loans, car loans, kids’ college fees etc.

Still low premiums: Unlike your 20s, stress will start to set in along with your family responsibilities. There is also possibility of health issues. Before things get too dire, it’s best to opt for insurance plans that will still give you good life cover at low premium rates. The more you wait, the costlier the premium will get.

Wealth accumulation: Opting for investment cum insurance plan at this time will give you more time to accumulate wealth for the future and also to compound it. The more years you save wisely, the larger the savings will be for your income-less years.

Short-term goal fulfillment: Many short-term plans like mortgage, car loan, children education, holiday expenses, health care costs can be covered by a sensible life insurance policy.

Saving on taxes: With increasing wealth, taxes woes also seem to multiply. During this stage of financial obligations, every penny counts and it’s just good sense to save on it. Life insurance makes sure you get tax benefits under sections 80C and 80D of the Income Tax Act of 1961.

What kind of life insurance should I opt for?

Protection plans: If you are looking for income replacement in the event of your death, protection plans, especially online ones are the way to go. They are also ideal to cover your family against home loan liabilities. There are simple term plans with no frills and only basic covers at extremely low premiums. Insurance companies are also extending protection plans with added benefits that not only offer a lump sum amount (death benefit), but a monthly income for a set period of time to your family after your death.

Savings and Investment plans: This is the age, you would prefer to start saving as this is when you start accruing it as well. Life insurance also includes savings and investment plans that offer multiple avenues to multiply your investment. ULIPs and traditional endowment plans are such avenues that allow you to not only cover your death with a life cover, but also allow you to accumulate a lump sum amount to manage you and your family’s needs during your lifetime. The two most critical savings and investment plan that you should have are the below:

Child plans: The birth of your children will bring a host of new financial responsibilities. Right from their birth you start saving to provide them the best education. At the same time you also want to secure these dreams in your absence. Child plans allow you to accumulate savings or give you timely payouts for school and college education.
Retirement plans: With the growing years and rising inflation, your need to secure your own future too preys on your mind. The compounding wealth in retirement plans will come to you in the form of monthly income when you cease to work, making sure you don’t become a financial burden on your children.

Health insurance plans: Our constantly changing lifestyle makes us vulnerable to health issues. Unexpected expenses can be emergency hospitalization or an accident. It can also mean multiple hospitalizations in a single year for more than a single family member. In hospitalization, expenses will not only mean the actual surgery/treatment, but also the innumerable tests that will precede it and follow it. One medical emergency and your entire savings could vanish without a trace. A suitable health insurance plan will make sure you are covered for all these surprises and that you get the best treatment for you and your family.

Here is a video to know how much life insurance cover is appropriate for you:

Read more about 5 reasons why you need life insurance

Read more about types of life insurance.

This article is contributed by HDFC Life team

How insurance can help your finances grow

October 23, 2018May 11, 2021 Team Turtlemint

With the changing times, our needs are also constantly changing. The improved standard of living has evolved what used to be our wants into needs. Our life stage goals, which used to once include paying out home loans, education loans and marriage expenses, now includes dreams of owning one’s own business and making sure it grows in an environment of competition and market inflation. Subsequently, we need financial tools that would help us accumulate and grow that wealth in order to not only meet our needs but to also make sure they are met in our absence.

This is where life insurance comes into play. Life covers not only protect your finances but also help you plan each stage of your life. A life insurance plan, carefully selected as per your need, not only works as a steady means of investment, but also provides the much needed protection till you attend that financial goal of yours.

The advantage with using insurance as a means of facilitating financial planning is that it is a beneficial tool which enables immense diversification. Insurance plans make available different options, each of which act as a solution for almost every requirement like education, retirement etc.

How to adopt insurance to help your money grow

To build a strong financial base, you need to make sure your money has been invested where one gets the benefit of growth with the additional protection of the savings or corpus. Here is how insurance can help you achieve each of these objectives.

Make saving a priority: It’s a fact of financial planning, often iterated, that saving at an early stage in your life will build a bigger corpus. The major benefit of starting early, especially when it comes to life insurance, is the fact that you have to pay lower premiums. Some of the best options to turn to when you are looking to save are endowment plans and money back plans, especially in your start up years, as they can help you build your habit of saving. These plans usually come with a secured returns and a reasonable life cover.

Invest your money where it grows: The early stages of your life are not just for saving but also for building your wealth for your income less years. And to build wealth, you have to invest in financial tools that will help you grow it significantly, keeping in mind the constantly increasing inflation and volatile market. Life insurance is apt in this scenario, as the risk involved is minimal with added protection for your corpus.

Protect your finances: The reason you want your finances protected and growing is to make sure your family is taken care of in your absence. Insurance can provide you with various options that allow you to protect your money for your family’s future, upon your death or in case you are incapacitated due to some accident. Some of the most prominent options that make this possible are term plans, and riders like Waiver of Premium or Accelerated Critical Illness (ACI). The benefit of riders is that they provide additional features that can be taken along with your base plan, at a nominal additional cost.

1. Term plans: These are the most simple and traditional life covers that are always useful to have in your financial kitty. They come with various options that could range from providing security for future situations such as change in responsibilities depending on your life stage, inflation, etc., to taking care of loan liabilities by your family, in case of an unfortunate occurrence. They make sure your family receives the complete sum assured in your absence.

2. Waiver of Premium: This option makes sure your family is not obligated to pay the premium for the remaining policy term, in your absence. The elimination of premium may come into effect in case of death or accidental total permanent disability.

3. Accelerated critical/terminal illness: This option provides financial relief in a situation that includes the occurrence of a critical health illness. It makes sure money is made available to your family in their time of need, by advancing your life cover payout.

Life Insurance- A multi pronged financial tool

Life insurance these days serve several purposes in addition to simply providing your family with basic monetary relief once you are gone. It is, therefore, a good idea to think about insurance the next time you want to invest your money wisely.

This article is contributed by HDFC Life team

Read more about 5 best ULIP plans to invest in 2018

Life insurance for every stage of your life

October 19, 2018May 11, 2021 Team Turtlemint

As we are in wake of nuclear family and inflation is exploding our financial life, life insurance has become a vital financial weapon in this situation. It is paramount for every individual to first adequately insure his life for the financial security of his/her dependents and then proceed to address other aspects of financial planning.

Life Insurance also has lot of sentimental value because it is an effort by the life assured to ensure that his loved ones don’t have to suffer after his demise. But life insurance shouldn’t just have sentimental pull. It should also be something that we plan for keeping in mind every stage of our life. Nowadays, life insurance offers more than just life cover protection. Let’s explore this thought in detail.

In your 20s

20s is the most enjoyable age in a person’s life. Fresh out of college with loads of hopes and aspiration, you take the first steps in your career. Some of you may even go for higher education. When it’s the age of enjoying every moment, insurance hardly fits into your perspective, unless as a tax saving vehicle for your newly earned salaries. As you are planning for the first stage of your eventful adult life, uncertainties like death or illness seem to be a remote possibility, and insurance is the last thing on your mind.

But there is a critical advantage of opting for life insurance at such an early age – low premiums. At this stage of your life, your savings are minimal, as you have just started working. And this is not to mention the carefree life you are still probably inclined towards. You may often push your decision to buy insurance into a distant future. But there is a ‘cost of postponement.’ In life insurance, premium rates are directly linked to your age. The earlier you buy insurance, the cheaper it is. For example, a 25-year old youth needs to pay about Rs 2,888.6 per year for a regular premium online term plan like Click2Protect 3D Plus for 30 years term and Rs 10 lakh sum assured. If he opts for the same at the age of 35, he will need to pay about Rs 5142, which is an extra Rs 8,11,224 compared to a 25 year old guy!

Insurers offer lower premiums to young people as they are mostly fit and healthy, which automatically implies a lesser possibility of death and risk.

In your 30s

Obligations and responsibilities –a new family, new home, bigger car – start to take up all your time. You may even have started semi-permanently settling in a job or got a couple of promotions. All this starts changing your thought process and brings to the forefront the need for financial planning, especially if you are the sole bread earner in your house.

When you start a family, the biggest worry that plagues you is their financial dependence after your death – basically income replacement. You don’t want them to go look for alternatives to your income or leave them without some sort of cushion that would make their life a whole lot easier. Your untimely death could put a wrench in all your best laid plans that may include anything from children’s higher education to owning your mortgage-free home. Life insurance serves well as that cushion, like Click2Protect 3D Plus, which offers the Income Replacement Option. Under this option, upon the unfortunate demise of the policyholder, the nominees receive a regular monthly income for the term of the policy along with a lump sum benefit at the time of death.

Here is a video about buying Term Insurance policy at a young age:

In your 40s

Having enjoyed your carefree 20s and your slightly less carefree 30s, the current decade will now be bringing home the importance of financial planning and the part that life insurance plays in it. This is the age in which financial obligations are not only at their peak but also giving you a massive headache, especially considering the fact that you’re already half way done with your working years. The looming personal loans and the retirement years make it vital that your savings not only compound but also ensure you have a stress-free future ahead of you.

Most people already have an investment portfolio with a few insurance covers littering it. If you are one of those people, it is time to start reviewing them based on current prices and the rate of inflation. But if you are a procrastinator, then considering a life insurance policy now is extremely vital to your financial planning. You not only want to keep your family away from financial burden, but you also want to make sure to leave a legacy for your children.

Click2Protect 3D Plus offers the Life Long Protection Option, which allows you to stay covered for the whole of your life.

In your 50s

After making sure your children are taken care of, it is time to start thinking about your future and your health. Your employment years are nearing an end, making you feel wary of the looming income-less years. But this need not be the case. Instead of depending on your children, it is better to make sure you and your spouse are financially independent and are able to continue living the life you are used to, without any hiccups. Towards this end, Click2Protect 3D Plus provides the options of 3D Life Option and 3D Life Long Protection Option, which not only make sure your spouse is taken care of in your absence, but also provides waiver of all future premiums upon diagnosis of any of the 34 critical illness listed in the policy.

Conclusion

A financial plan is very important and life insurance is integral part of that financial plan and life insurance should be based on considering all factors of different life stages of a person and it should be protective first than it can be used as savings and wealth creation tool. Life insurance these days serve several purposes in addition to simply providing your family with basic monetary relief once you are gone. It is, therefore, a good idea to think about insurance the next time you want to invest your money wisely.

This article is contributed by HDFC Life team

Read more about Should I buy term insurance riders.

Read more about 5 reasons why you need life insurance

Health insurance for disabled/differently abled persons

October 12, 2018May 11, 2021 Team Turtlemint

The Oxford Dictionary defines a disabled person as a person having a physical or mental condition that limits their movements, senses or activities. Such a disability could be physical or mental. There are, in actual, three different kinds of disabilities which are as follows –

Congenital disability

Disability which is existent ever since birth is called a congenital disability. Some common examples include Down syndrome, cerebral palsy, cleft palate and lip, spina bifida, etc.

Accidental disability

Disabilities which arise out of an accident are called accidental disabilities. For instance, if an individual loses both his legs in an accident, it is called a permanent total disability.

Mental disability

Mental disability is a mental illness which impairs the individual’s thoughts, speech, behavior and functioning. Examples include Schizophrenia, autism, Asperger’s syndrome, etc.

Disabled, or differently-abled, persons have a challenging life. They manage to lead as normal a life as possible but are often restricted due to their disability. Their medical expenses are also high and they have higher probability of facing medical emergencies. Given the current medical expenses, it becomes difficult for differently-abled individuals or their families to bear the medical burdens. Does a health insurance plan come to the rescue?

Yes, health insurance plans are available for differently abled individuals. Let’s understand –

Government health plans for the differently abled

The Government, in its bid for social welfare, has launched some health insurance schemes for the disabled. One such scheme is the Swavlamban Health Insurance Scheme which has been implemented through the National Institutes and Composite Regional Centres for Persons with Disabilities. This is a cashless hospitalisation scheme for people whose income is up to Rs.3 lakhs annually. The scheme has been launched under the Department of Education and Ministry of Social Justice and Empowerment. Another scheme is the Nirmaya Health Insurance Scheme with a cover of Rs.1 lakh. The scheme covers cost of pathology, diagnostic tests, medicines, dental check-ups, corrective surgeries for treating the disability, ongoing therapies, etc. Thus, the scheme also allows coverage especially for people with disabilities. People suffering from autism, cerebral palsy, mental retardation and other disabilities can buy this insurance. The premium rate is a flat rate for all ages. Pre-existing illnesses are covered. No pre-entrance medical check-ups are required to buy the plan. The premium rate is Rs.250 if the insured’s family’s income is up to Rs.15, 000 per month. For families with incomes of Rs.15, 000 and above, the premium amount is Rs.500.

Private health insurance plans for the differently abled

Other than the Government’s health insurance schemes, private companies also allow their health plans to be bought by differently abled individuals. However, such plans have some terms and conditions applicable to the coverage. Health insurance companies check various factors before the plan is issued. They check –

The extent of disability
The present health state of the individual
The individual’s earning capacity
Total family earnings, etc.

The plan also requires various documents like a disability certificate, type of disability, medical records, etc. Pre-entrance medical check-ups are also required irrespective of the age of the individual. These check-ups help the company understand the type and severity of the individual’s disability before issuing the health plan.

So, differently abled people can avail health coverage under Government sponsored schemes or through private health insurers. However, they should remember that the coverage would come with terms and conditions and would be limiting. The coverage would, however, help them deal with their medical expenses and be financially rewarding.

This article has been contributed by Moneycontrol team

RTO Forms for availing a driving license

October 1, 2018May 11, 2021 Team Turtlemint

If you want to try your hand at driving a vehicle, you have to learn driving skills. You can join a driving school and learn the skills but you would need a driving license to drive the vehicle. The RTO (Regional Transport Office) issues your driving license. Even if you want to make any changes to your driving license, you have to get such changes done through the RTO. There are specified forms which are to be filled in and submitted with the RTO to obtain a driving license and to also make changes in it.

Here are the different forms which you would require –

RTO forms for availing a driving license

1. Form 1: Application-cum-Declaration to Physical Fitness

Who needs it?

Anyone who wishes to avail a driving license

Purpose:

This is an application form for registering for a driving license.

The form also declares that the applicant is physically fit to avail the license

Click here to download Form 1

2. Form 1A: Medical Certificate

Who needs it?
To be filled and submitted by a registered medical practitioner appointed by the State Government.

Purpose:

To certify that the applicant applying for the driving license is physically fit as per the medical check-up done by the medical practitioner

Click here to download Form 1A

3. Form 2: Application for the Grant of Learner’s License

Who needs it?
Applicants applying for a Leaner’s License

Purpose: To apply for a Learner’s License for a specified vehicle

Click here to download Form 2

4. Form 4: Application for License to Drive

Who needs it?
Applicants applying for a Driving License

Purpose: To apply for a driving license for a specified vehicle

Click here to download Form 4

5. Form 8: Application for the addition of new class of vehicles to a Driving License

Who needs it?
Applicants wanting to drive another type of vehicle

Purpose: To get another type of vehicle added to the existing driving license

Click here to download Form 8

6. Form 9: Application for the renewal of Driving License

Who needs it?
Applicants who want to renew their existing driving license

Purpose: To renew the driving license which is expired or about to expired

Click here to download Form 9

These forms are required to be submitted to the RTO along with your necessary documents for the respective purposes. Know your forms for any driving license related queries and changes.

Making a car insurance claim? Here’s a complete guide

September 25, 2018May 11, 2021 Team Turtlemint

Having a car insurance policy is mandatory and so many of you feel that the policy is an unnecessary expense. But when there is an accident and you face damages, you realise the importance of a car insurance plan. It is because, such damages result in a car insurance claim where the insurance company pays for the financial loss. Making a car insurance claim is simple. It involves some simple steps and the insurer pays for the losses incurred. However, many of you are clueless when it comes to car insurance claims. You don’t know when does a claim occur and how to claim car insurance. So, here’s a complete guide to car insurance claims for your understanding.

When does a claim occur?

A claim is said to occur when –

You cause bodily injury to any third party
A third party dies due to an accident involving your car
You damage any third party property
Your car suffers damages and needs repairs
Your car is stolen
Your car is damaged beyond repairs

In any one or more of the above-mentioned incidents, your car insurance policy becomes eligible to pay for the financial costs faced.

Making a claim

Here is a step-by-step car insurance claim process of your car insurance policy for the above-mentioned contingencies –

If your car suffers any damage

Inform the insurance company.

This is the first step which you should take in the event of a claim. If the insurance company is not informed of the contingency and you take any action yourself, making a claim later on would not be entertained by the company. So, as soon as you face any mishap, call the company’s 24*7 helpline number and register your claim.

Provide the details of the accident

Upon being intimated, the insurance company would want to know the details of the incident. Describe the details completely for the company to understand the nature of your claim. The company would also require the insurance policy number, license number of the individual driving the car and the vehicle registration number. You should keep these details handy when informing the insurance company of a claim.

Avail the claim reference number and take the car to the nearest garage.

After you describe the incident, the company would provide you with a claim reference number. This number should be noted and used in future claim follow-ups. The location of the nearest preferred garage would also be provided to you by the company. You should take the car to the nearest garage. In case of severe damages when the car cannot be moved, the company might also arrange for towing facilities to take your car to the nearest garage.

Wait for the surveyor

Once the car reaches the garage, the insurance company arranges for a surveyor visit. The surveyor comes, assesses the damages of the car, prepares a claim estimate and submits it with the insurance company. Only after the surveyor’s report is submitted and approved by the company, would your claim be approved.

Fill the claim form

You would have to take care of some paperwork to get your claim approved. The insurance claim form should be filled in and submitted with the insurance company. Important documents like the RC Book of the car, your driving license and copy of the policy document would have to be submitted with the claim form.

Repairs Begin

Once the insurer approves the claim based on the surveyor’s report and your documents, repairs on your car begin. Once the repairs are completed, the bill is sent to the insurance company. The insurance company settles the bills directly with the garage.

Pay the remaining claim and take delivery of the car

Some elements of the claim might be payable by you. For instance, there is a compulsory excess which has to be borne by you. Similarly, the depreciation on the replaced parts would be your out-of-pocket expenses. Pay the remaining claim which is not payable by the insurance company to settle the garage dues. Once the dues are settled, you can take delivery of your car.

For third party liability claims for car-owner

If any third party or property is harmed, the incident would be reported to the Motor Accidents Claim Tribunal (MACT). You would have to inform the insurance company and file a FIR with the police. The FIR is an important requirement in case of third party claims. If your car has also suffered any damages, you would have to follow the above-mentioned process. For third party damages, the insurance company would pay the claim based on the rulings of the tribunal.

Claim for stolen car

If the car is stolen, you should inform the company and file a FIR with the police. You would then have to fill and submit the claim form along with copies of the RC Book, driving license, intimation sent to RTO about the loss, policy document and the FIR. If the car is not located within three months of theft, the police issue a ‘Non-Traceable Report’. You present this certificate to the insurer. You should also transfer the RC book of the car in the insurer’s name and issue a letter of subrogation giving up all ownership rights to the car. After receiving and analysing the documents, the insurer would settle the claim. In most of theft cases, the insurance company demands you to submit both the original and duplicate car keys to eliminate the possibility of theft due to your negligence of leaving the key in the car.

Also have a look at the video below to understand how to register for car insurance claims

Types of claims

Claims under your car insurance policy can be settled directly by the insurer or through reimbursement. Let’s understand –

Cashless claims – when the insurer directly settles the claim, it is called cashless claim. This is possible only if you get your vehicle repaired at a garage which is tied-up with the insurance company.
Reimbursement – if you take your vehicle to any other garage which is not tied-up with the insurer, your claim would be settled through reimbursement. You would have to get the car repaired at your expense. Then, you have to submit the repair bills to the insurance company. The company assesses the bills and reimburses you for the expenses you incurred.

So, this was the entire guide to making a successful car insurance claim. You should follow the process for easy claim settlements. Moreover, look out for exclusions. If you make a claim for an excluded cost, the claim would be rejected. So, understand the coverage of your policy before you make a claim.

Do you know about excess in your motor insurance policy?

September 18, 2018May 11, 2021 Team Turtlemint

A motor insurance policy has some technical concepts which are often not understood by the common folk. As such, when buying the policy the concepts are ignored and at the time of a claim, this ignorance results in a loss. So, it is always better to understand the important concepts of your motor insurance policy. One such technical and important concept is excess. Do you know about it? Let’s find out –

Excess in motor insurance policy

Excess represents that part of claim which is payable by you. In each instance of claim, you have to pay the specified amount yourself. The insurance company would then pay the remaining amount.

Types of excess:Motor insurance policies have two types of excess- compulsory excess and voluntary excess

Compulsory excess in motor insurance – as is evident from the name, this excess is mandatorily borne by you. The amount is fixed and not within your control. Both car and two-wheeler insurance policies have a compulsory excess.
Voluntary excess in motor insurance – voluntary excess is a way to reduce your premium. Sometimes, customers want to decrease their premium and they choose voluntary deductible. Choosing voluntary deductible lowers the premium rate by making the customer bear a certain portion of the claim amount voluntarily.

Difference between compulsory and voluntary excess:

While compulsory excess is universal in all motor insurance policies, voluntary excess is at the discretion of the policyholder. Therefore, choosing a voluntary excess earns a premium discount while compulsory excess doesn’t.

Why the concept of compulsory excess?

The concept of excess is applicable in a motor insurance policy to dissuade you from making small, trivial claims. When you know that the extent of the excess is payable by you, you would refrain from making small claims in your motor insurance policy. This would also help you save your no claim discount.

How compulsory and voluntary excess work?

Suppose, in a motor insurance policy, the compulsory excess is Rs.2000. On top of that, you choose a voluntary excess of Rs.1000. If there is a claim of Rs.10,000, you would have to pay Rs.2000 of the compulsory excess and Rs.1000 of the voluntary excess. You, therefore, pay Rs.3000 while the insurance company settles your claim for Rs.7000.

When to choose voluntary excess?

Since you have no control over compulsory excess, you should be careful when choosing voluntary excess. If you are a good driver with a clean driving record and are very careful, you can opt for voluntary deductible. Since the incidence of claim would be low given your driving skills, you wouldn’t have to bear high proportions of claims and can also earn a premium discount.

Things to keep in mind before choosing voluntary deductible

Remember the following things before you think of choosing voluntary deductible in your policy –

• Affordability

Voluntary excess denotes your out-of-pocket expenses. As such, be careful in choosing the amount. Since you would already have the responsibility of paying for the compulsory excess, choose voluntary excess only if the total of the two excesses is affordable for you.

• Economy

Though the associated voluntary deductible discounts might tempt you, assess the economy of choosing the voluntary excess. If the discount earned is lower than the out-of-pocket expense on the excess, choosing a voluntary excess is not economical.

Understand the two excesses applicable in motor insurance policies as they have an impact on the claim settlement. They represent out-of-pocket expenses and so you should be aware about both.

Check the below video to know more about compulsory excess