Save Money Save Life

A genuine chit-chat on increasing vehicles on roads will definitely provides a room for securing the possession either it may be the life or vehicle or both. Each and every segment of people dreams to own a car and the only difference is depending upon the economic feasibility they opt for i.e. either small size or midsize or luxurious cars. Whatsoever the cause may be the car they own is the result of hardly earned penny. So it is clear that the crying need of an hour is Car Insurance. In many jurisdictions it is compulsory to have vehicle insurance before using or keeping a motor vehicle on public roads. Most jurisdictions relate insurance to both the car and the driver; however the degree of each varies greatly.

Though our Nation is Democratic it is strictly autocratic when concerned about saving the lives of its citizens from drastic havoc. That too on vehicles it is stringent that no automobiles can be driven on road without any valid insurance. Car Insurance in India is mandatory and the Motor Insurance will covers against any loss, damage due to natural or manmade calamities. The natural calamities include fire, explosion, self ignition, lightening, earthquake, typhoon, hurricane, storm, cyclone, hailstorm, frost, landslide and rockslide.

Man made calamities include burglary, theft, riot, strike, malicious act and accident by external means, terrorist activity and any damage in transit by road, rail and inland waterway. Motor Insurance provides compulsory personal accident cover for individual owner of the vehicle. There also exists an option for a personal accident cover for passengers and third party legal liability. Third party legal liability includes any permanent injury or death of a person and any damage to the property.

The vehicles insurance premium varies, if they are outfitted with CNG / LPG, the CNG/LPG kit they have to be insured separately with additional premium. Usually vehicles are insured at fixed called the Insured's Declared Value (IDV).

IDV is calculated on the basis of the manufacturer's listed selling price of the vehicle after deducting the depreciation for every year as per the schedule provided by the Indian Motor Tariff. If the price of any electrical and or electronic item installed in the vehicle is not included in the manufacturer's listed selling price, then the actual value of this item can be added to the sum insured over and above the IDV.

There are two kinds of Vehicle Insurance:

Comprehensive Insurance:

Comprehensive Insurance covers risk arising out of theft or damage to the vehicle, death of the driver and or passengers in the vehicle, and damage caused by the vehicle to other people or property.
The Comprehensive auto insurance policy provides cover for damage caused to the vehicle due to man-made or not.
Extensions can be purchased on Comprehensive motor insurance policies for loss or damage to accessories, passenger accident cover, and legal liability to employees and non-fare paying passengers.
Third party Insurance:

The third party Insurance covers only damage caused by the vehicle to other people or property. These policies are valid for a year.
Your car insurance company should notify you by mail when it's time to renew the policy.
The risks covered by the Third Party policy include death or injury to a third party and damage to third party property.
Liability in the case of death or injury is unlimited.
Insurance exclusions are accessories of the vehicles; they are added separately in the insurance policy as they are not essential to the performance of the vehicle. This coverage will be included in IDV of the vehicle