Motor insurance policies and its importance from sanjay's blog


The economic prosperity, population increase along with lifestyle changes in India have contributed immensely to a number of motor vehicles purchase in the past few years. The increase in these numbers, along with the emergence of high-risk road user has converged in not only a dramatic number of road accidents but also fatal accidents and fatal injuries. Also, you cannot predict a natural or man-made incidence. Therefore, experts say it would be a wise decision to buy a suitable motor insurance policy.

Motor insurance premiums are commonly linked with driver behavior and their risk profiles. Drivers who make more motor insurance claims are likely to be at the guilt of causing traffic accidents. Therefore, companies carefully evaluate your driving behavior and past records to approver your insurance policy.

Motor insurance cover deals with insurance of road vehicles are becoming an essential aspect of the daily life. It protects the insured person against claims for injury or health damage of another person or property as a result of the insurer person’s action for which the insured person is labile. It's usually termed as third party insurance.

Companies usually utilize a risk selection process to determine what motor insurance premium needs to be charged for a particular individual. The premium costs can either be mandated by the government or determined by the insurance company in accordance with a framework of regulations set by the government. When the premium is not mandated by the government it’s usually derived from statistical data. The premium can vary depending on lots of factors like car make and model, engine capacity, city, place of living, occupation, place of parking, driving records, your age & gender etc.

One of the major parameter on which insurance company decides the premium is Insured Declared Value. It is the maximum sum assured by the company which is given to the policyholder in case of theft or total loss of the vehicle. It is calculated by subtracting the depreciation value from the market price of the motor vehicle.  It forms a prominent factor in deciding your vehicle insurance premium. By valuing your IDV correctly, you can get a reduced premium rate.


Experts’ advice don’t opt for lower IDV as compared to the actual IDV to save premium because that is the total amount you will receive in the form of sum assured in case of vandalism and theft or complete damage of your car. Also, overstating of the IDV can be pricy as well. It is important to quote for the right IDV of your vehicle.

Online motor insurance policies are one of the cheapest amongst any other medium. If you compare the premium amount of the same policy through the offline medium you’ll be able to figure that online policies are the most economical medium of buying insurance for your motor.

Comparison of different motor insurance policies is very much necessary for buying the best policies at an affordable premium cost. You can easily compare the benefits, features, discount rates, terms and conditions, claim settlements and quotes of different motor insurance policies online. 

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By sanjay
Added May 19



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