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Car Insurance 843 views April 24, 2020
Car insurance policy is necessary for all the car owners. If you have a car and you want to drive it freely on the road then you will have to buy a third party car insurance for every car that you own. As per the mandatory requirement of third party insurance policy every car owner has to buy a car insurance policy to cover the third party damages. However, one car insurance policy provides coverage only to one car owned by the individual. Hence, for every additional car that you own you need an additional car insurance policy to cover the damages of each individual car. There are two options of car insurance which includes third party insurance which is mandatory under law and comprehensive car insurance which is optional.
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Third-party insurance policy covers all the third party damages caused by your car due to an accident. Any damages caused to any third party or his/her property will be covered by the third party insurance policy. Third-party insurance is mandatory under the Motor Vehicles Act and one policy provides coverage only to one car. The premiums for the third party insurance policy are determined by IRDAI and they are same for all the insurance company across India. IRDAI revises the rate of premium from time to time.
Comprehensive Insurance policy provides coverage for personal damages as well as third party liability. It provides complete coverage to the policyholder against all the damages caused to the policyholder due to an accident. A comprehensive policy also provides coverage against loss or theft of the vehicle. Comprehensive insurance policy is optional and the premium of these policies is determined by the insurance companies. They also have an added rider facility to enhance its coverage benefits. One insurance policy covers one vehicle only.
The premiums based on usage will soon prevail in the industry of Motor Insurance with the insurance companies offering single owner of multiple cars an option to allocate the coverage of the car insurance policy in line with anticipated usage of each of the car. This option will enable the individuals owning more than one car to buy a single car insurance policy for multiple cars with a different limit for each of the car.
The floater policy option introduced by ICICI Lombard allows the car owners to optimise the sum assured in their car insurance policy since no individual will drive two vehicles at the same time. This floater option is very much similar to the family floater available in the health insurance plans to buy a single health plan with sum assured for all the family members. ‘Single owner, multiple vehicles’ offered by ICICI Lombard is app-based floater interface which helps the policyholder to link their multiple vehicles and ensure coverage to all.
ICICI Lombard has developed the prototype to evaluate the floater option after six months. This prototype is valid for a period of six months and the insurance companies can opt to launch usage-based insurance to the individuals where they can pay the amount of premium as per their driving choices.
The floater option is an app-based interface. Key features of this new programme by which soon you will get one policy for many cars are as follows:
This option will provide various benefits to the policyholders. The benefits of this floater option are as follows:
Getting an option of one car insurance policy for many cars is a high relief to the car owners owning many cars. IRDAI has allowed one car insurance plan for more than one car ensuring ease and hassle-free insurance for many cars. Hence, if you deal in the business of car or own many cars and faces difficulty for maintaining their insurance then there is relief coming your way soon with the option of floater option.