1. Photocopy of Aadhaar Card/Address Proof(any one): Passport, Voter's/Election Card, Aadhar card, Utility Bills (like Mobile, Electricity, Water, Gas Credit Card Bill, Ration Card Bill), Rental Agreement, Bank passbook, Driving License (Self Attested)
2. Photocopy of Pan Card
3. Original Cancel Cheque
4. Original Policy Bond
5. Maturity Form
WHEN BUYING CAR
insurance, many opt for a higher amount of voluntary deductible to reduce the
premium. While such deductibles will encourage the policyholder to drive
carefully and not raise claims for any minor damages, he will have to pay a
higher out-of-pocket expense in case of an accident claim. Deductibles in car
insurance are cost-sharing agreements between the insurer and the insured where
a portion of the claim is paid by the policyholder before getting the insurance
claim.
There are two types of
deductibles- compulsory and voluntary-and the policyholder must understand the
terms and conditions of the deductibles mentioned in the policy document. While
the compulsory deductible is fixed by the insurance regulator, the voluntary
one is decided by the policyholder. Probus Insurance, says the deductibles is
calculated based on the premium value of your deductible, lower would be your
premium.
The policyholder should
not always look for a cheap cover as it will come with higher voluntary
deductible. John Mayne, executive director, CoverStack, an insurtech starup,
says the amount of voluntary deductible is decided by the individual policyholder
while purchasing the policy.”If a policyholder” capacity to bear expenses is
higher at the time of loss, he has the advantage of paying less in premium over
the years. However, it is best to choose an affordable amount as voluntary
deductibles as in case of heavy damages, one may incur higher out-of-pocket
expenses, “he says.
All insured vehicles will have a compulsory deductible component in the policy as per norms of the insurance regulator and the amount will depend on the engine capacity. For private cars up to 1499 cc engine capacity, the compulsory deduction is Rs 1,000 and for those above it is Rs 2,000. The compulsory deductible has no effect on the insurance premium as it is paid by the insured as a fee when a claim is made.
What should be the
voluntary deductible amount?
A policyholder must
decide the amount of voluntary deductible depending on the premium he has to
pay for the policy and his comfort level with paying out-of-pocket expenses in
case of a claim. The voluntary deductible should be decided after factoring in
the usage of the car and the risks the insured perceives he might be exposed
to. For instance, If the usage of the car is less and it is exposed to lower
risks, you can go for a higher deductible. Your driving skills and the area
where you usually drive the car are other points to consider.”Considering all
these, you can decide whether to opt for higher deductible”.
One must also look at
the repairing costs in case of damage, especially if it is a new car. ”If you
opt for a higher deductible over and above the compulsory deductible, you have
options available to choose from the avail discounts. Higher deductible usually
offer higher discounts on the premium but choose wisely looking at the
probability of damage and affordability of the same.
So, if you opt for a
higher deductible ensure you car is careful and advanced safety features are
installed in the car. Also, opt for a comprehensive cover along with add-on
covers such as zero depreciation, engine cover and vehicle replacement.
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