All those who have any motor vehicle, be it a two-wheeler, a private car or a commercial taxi have to get their vehicle insured compulsorily as per provisions of the Motor Vehicles Act 1988. We all buy motor insurance in the hope that whenever the need arises due to accident or theft of the vehicle, the insurance company will settle our claim promptly.
But many times this does not happen. The claim may be genuine but the insurance company may deny the claim of the grounds of deficiencies on the part of the vehicle owner. There are certain things which should be kept in mind with respect to the vehicle so that claims are not rejected.
Policy copy: Insurance policy copy is the most important document of the vehicle. So, always keep the original policy copy safely to avoid getting wet, mutilated or torn. It would be good to keep Xerox copies of the policy at home. This comes handy in case your policy is lost or mutilated.
Keys of the vehicle: Keys are as important as your vehicle. Keep the second unused key safely. If one key is lost, immediately lodge a police report. In the event of theft of the vehicle, both the keys are required to be submitted to the insurer for claim settlement. If only one key is submitted insurer may reject your claim or make your claim substandard citing negligence on your part.
Disclosure of information: While getting your motor insurance you must disclose information related to the previous claims lodged if any. Principle of utmost good faith comes into play here. The insurance company issues the policy based on your declaration. In the event of claim, if it is found that claim has been lodged and the same has not been disclosed while buying the insurance, the claim is liable to be rejected by the insurance company.
Claim intimation: Accident or theft of the vehicle should be immediately intimated to the insurance company, preferably within 48 hours of the incident. In case of theft, an FIR should be lodged immediately. Delay in intimation for a significant period may lead to rejection of the claim by the insurance company.
Vehicle documents: registration certificate is the identity card of the vehicle and it should be preserved at all cost. If it gets lost or mutilated a duplicate certificate should be obtained from RTO. In case of commercial vehicles, such a Uber Cab documents such as permits, fitness, authorization certificates are important in addition to the registration certificate. Also, Road tax should be paid without fail as required.
Valid driving license: You must possess a valid driving license for the class of vehicle you are driving. For example for driving a private car LMV license is required but if it is a commercial of a transport vehicle driving license should be endorsed for transport. If you have a learning license then while driving the vehicle you must be accompanied by someone who holds a valid and effective driving license.
Invoices and receipts: In case of repair of the vehicle after an accident, the original repair invoice and payment receipts should be submitted to the insurance company and xerox copy should be retained for further reference.
Sale and purchase of the vehicle or used vehicle: If you are purchasing a used vehicle from someone, you should get the registration certificate of the vehicle and insurance policy transferred in your name from RTO and insurance company immediately. If a registration certificate has been transferred in your name while the insurance policy is still in the previous owner’s name or vice-versa claim will be out-rightly rejected. If you sell your vehicle to someone make sure that RC, as well as insurance, are transferred in the buyer’s name. If it is not done you are inviting a very big problem. If a third party is injured or dies due to an accident of your vehicle, you will be liable to pay the compensation even though you have sold the vehicle to some and are no longer the owner.
Reasonable care: Insurance contract requires the vehicle owner to take reasonable care of his vehicle. For example, a vehicle should never be left with keys or standing in a flooded area for a long duration. If the loss occurs due to the negligence of the owner claim is rejected. For instance, if a car is left with the key in the market and is stolen then claim will be rejected as the theft has occurred due to the negligence of the owner.
Modifications in the vehicle: Any modification or new addition should be duly notified to the company immediately. For example, if CNG kit is added you must get your registration certificate endorsed for the same from the concerned RTO and inform the company and deposit the extra premium for CNG kit. Same goes for additional accessories such as a stereo system.
Pollution check: Any vehicle which has been in use for more than one year needs to be checked for emission every six months from regional transport centers.
Change in correspondence address: If your address is changed please get it modified in your insurance policy also. Though this will not affect your claim but would be useful for smooth correspondence with the company.
Keeping the above few points in mind would ensure that you have a hassle free claim experience whenever the need arises.
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