Before we get to the point whether one should claim for all accidents or not, it is important to understand the importance of having a car insurance in the first place. While there is nothing wrong with doing puja for your vehicle or keeping idols, it can protect your car by only so much. When you are out on the road, driving, there are a lot of things that can go wrong.
It is for these things that can go wrong, one must opt for a car insurance policy. A car insurance policy can protect you and your vehicle from potential mishaps and unforeseen events of the future. At the same time, a policy ensures that your car gets the legal clearance to be driven on the road.
Yes, you read it correctly. It is not legal to drive your car without a valid car insurance on the roads. The Motor Vehicles Act has been around for quite some years. But an amendment in the year 1988 mandates all vehicles to have a valid insurance on them. According to the amendment, one must at least have a third-party liability cover for their car.
When you do set out to buy a car insurance policy, there are two possible options that you must choose from. A third-party liability cover or a comprehensive cover. A third-party liability cover is the bare minimum policy and is the cheaper of the two.
Should your car meet with an unfortunate accident, any damages or injuries arising out of it will be taken care of by the policy. The damages are not limited to individuals, any damages to properties are also covered as a part of the policy.
A comprehensive policy is a step up from the third-party liability insurance. It obviously includes a third-party cover but adds on several other much needed features. It offers you the ability to claim for damages to your own car for starters. Similarly, if there are any damages to your vehicle in the case of a natural calamity or theft, riots, burglary etc. you can claim your policy.
While there are several reasons for buying a car insurance policy, it primarily is needed so that you can save money on damages and repairs. In the event that your car met with an accident or incident, you can claim your car insurance policy and get the repairs done.
This is where a car insurance policy shines. Depending on which type of policy you have picked and the understanding between you and your insurer, you might walk away without paying a single penny for the repairs. Or by paying a minimal amount. This, on any given day, is way better than paying for the entire repair costs from your pocket.
While driving on Indian roads, it is a bit difficult to keep yourself away from incidents. There are several instances where the driver of the car might be at no fault but someone else might just hit your car. While instant anger and frustration is expected, one ends up doing the obvious, claim the policy.
However, does it always make sense to claim your car insurance policy? In simple words, No. You might come across situations where a rider just brushed his bike against your car. While this might not call for an expensive repair, but the scratch might not look good or be at a place that is always visible.
In such cases, you can repair your car and pay the bills from your pockets. There is some rationale behind this theory. Insurers offer NCB or no claims bonus to the insured if they do not claim their policy within the term.
If you qualify for NCB, the bonus starts at 20% for the very first year that you haven’t claimed your policy. Since, it is a cumulative bonus, for consecutive years the bonus keeps adding up. You can save as much as 50% by the fifth year.
Should you face a situation where the repair bill is less than the discounts that you can avail via NCB, go ahead and pay from your pockets. For larger repairs, you can still opt to claim your policy. Insurers these days also have started offering NCB protection riders.
With the help of these add-ons, you can keep your NCB bonus intact and still claim your policy. To sum it up, you do not necessarily need to claim your policy for all accidents.