In India, third-party liability insurance is mandatory for all vehicles on the road. Insurance cover your expenses against any damage to the vehicle or third party.

Insurance can be claimed when the vehicle is damaged or needs repair due to riots or due to any natural calamities.

Motor Insurance is a must for every vehicle on road. Here are few must know points if you own a vehicle:

1 Period of the policy

A motor insurance policy is usually valid for a period of one year and has to be renewed every year before the due date. If any delay in renewing the policy, the vehicle has to be inspected.

Also, if a comprehensive policy is allowed to lapse for more than 90 days, the accrued benefit of NCB (No Claim Bonus) is also lost.

2 No Claim Bonus

The benefit accrued to an insured for not making any claims during the previous policy period is called no claim bonus.

In India, it ranges from 20 per cent on the Own Damage premium and progressively increases to a maximum of 50 per cent.

3 Information to be provided

While buying an insurance for your vehicle one should be aware of vehicle registration details with Engine No., Chasis no., Class of vehicle, cubic capacity, seating capacity, etc.

Tax paid details; Certificate of fitness, Driver details - age, gender, qualifications, licence validity Previous insurance history, if any.

4 Motor Insurance Claim

The insurer should submit the following documents duly filled in claim form, RC copy of the vehicle, Original estimate of loss, Original repair invoice and payment receipt.

In case a cashless facility is availed, only repair invoice would need to be submitted and FIR, if required.

For theft claims, the keys are to be submitted. Theft claims would also require non-traceable certificate to be submitted.

5 Transfer of vehicle

In case of vehicle transfer, individuals should register the vehicle with the new owner and even insurance can be transferred.

Remember that registration and insurance of the vehicle should always be in the same name with the same address. Or else claim is not payable.

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