What To Do If Your Automobile Insurance Policy is Canceled

What To Do If Your Automobile Insurance Policy is Canceled


Well, I’ll tell you one thing NOT to do if your automobile insurance policy is canceled, and that’s to drive your car, not until you’ve sorted things out anyway. If your automobile insurance policy is canceled by the insurance company without your permission, then there are some things duties which the company must do, and you do have certain rights.

There are three ways in which your insurance company can cancel your auto insurance policy without your permission:

    rescission – that sounds complicated! It simply means that they rescind your policy right back to the beginning making it all void, no cover at all and your money back.
    cancellation – we all know what that means don’t we. They terminate the policy before it reaches it’s expiration date.
    non-renewal – when the policy runs it’s full course but the insurance company refuse to renew your automobile insurance policy.

Why Your Automobile Insurance Policy is Canceled

There are a few different possibilities over why your insurance company might choose to cancel your automobile insurance policy. During the first couple of months, for example (60 days to be precise) they can cancel your policy just because they feel like it in many states.  Basically the company have got that amount of time to check you out and decide whether they really want to deal with you – if your initial premium payment isn’t fulfilled for any reason (rubber check / non processed credit card payment because of lack of funds etc) then they can simply cancel your insurance, it’ll be null and void and there ain’t nothing you can do about it. If, however, more than 60 days (for example) have gone by, they are only permitted to cancel your automobile insurance policy for one of the following reasons:

    if you don’t pay your premiums on time
    if you didn’t tell the whole truth to get the policy in the first place – misrepresentation, fraud etc or not disclosing details of previous traffic violations or motor vehicle accidents (if they asked you for that information in the first place)
    if somebody who is named on the automobile insurance policy violated the terms or conditions of it
    if somebody who is insured on the automobile insurance policy made a fraudulent claim on it, or helped somebody else to do so
    if you or a member of your household who uses the vehicle: has their driver’s license revoked or suspended during the last 12 months, becomes a high risk of heart attacks or epileptic fits and is deemed unfit to operate any motor vehicle in a safe manner, or has a criminal conviction (not necessarily traffic violation) or mental / physical condition which might put other members of the public in danger if they were to be let loose in a motor vehicle.

Well, that’s the drivers covered, but there are other reasons why an insurance company might choose to cancel your automobile insurance policy, and that’s all to do with the vehicle itself:

    if the motor vehicle isn’t roadworthy, ie it has defects which might endanger public safety if it were to be driven in public
    if you’re charging to give people a lift – car pools are okay, but you can’t hire it out for money or anything like that, I should think (and hope) that ”Mom’s taxi” is fine, if you negotiate a few household chores in exchange for a lift in to town . . .
    if you use your vehicle to carry explosives or inflammable stuff
    if you customize your vehicle during the period of the policy, if it increases the risk of it being involved in an accident (“go-faster stripes” should be okay, but check with your agent to be on the safe side)
    if your vehicle hasn’t passed any required legal inspections that it may so require

You’ve got to be truthful about the past too, the last 3 years to be precise, or your automobile insurance policy could be canceled:

    if you, or someone else in your household who regularly operates the vehicle has been addicted to drugs or other narcotics
    if they’ve been either convicted or forfeited bail for – a felony, drunk driving or driving while under the influence of drugs, criminal negligence which resulted in someone being hurt, assaulted or killed while they were operating a motor vehicle, making any false statements to try and get a chauffeurs or operators license, stealing a motor vehicle, failing to stop at the scene of an accident etc.

However, don’t worry about this sort of thing going on without being told the reason your automobile insurance policy has been canceled. The insurance company have go to tell you the reasons in writing, and you do have the right to appeal if you don’t agree with their reasons. Make sure that you tell them if you move house though, they’ll send the notice to the address on your policy, and if you don’t get it then it’s down to you . . . They only have to prove mailing the notice, not that you’ve actually got it.

Source:http://www.1-car-auto-insurance-quotes.com

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Car Insurance Policy

Motor Private Car Insurance Policy

Private car insurance policy provides coverage for loss of or damage to your vehicle against the risk of accident, fire, theft, floods, earthquake, riot, strike etc. The policy also gives coverage for your liability arising out of death, injury to third party and/ or third property damage.

What the policy covers: Loss or damage to the insured vehicle, Personal Accident and Third Party Liability due to the following: Natural calamities -- Fire, explosion,self-ignition, lightning, earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide. Man made: Burglary,Theft,Riot & strike, Malicious act, Accident by external means, Any damage in transit by road, rail, inland waterway, lift, elevator or air. Personal Accident Cover: Provides compulsory personal accident cover of Rs. 2 lakhs for individual owner driver of the insured vehicle while travelling in, mounting or dismounting from the car. You can also opt for a personal accident cover for passengers. Third party legal liability: Gives guaranteed protection against legal liability arising due to accidental damages, any permanent injury/ death of a person and/or  any damage caused to the property. Key Benefits Cashless claim facility at Cashless Garage Network across India. Claim towing charges up to Rs 1,500 in the event accidental damage or loss to your vehicle as specified under the policy Avail the following bonuses and discounts: No Claim Bonus: If you do not make a claim during the policy period, a No Claim Bonus (NCB) is offered on renewals. The discount can go as high as 50%. (NCB will only be allowed provided the policy is renewed within 90 days of the expiry date of the previous policy.) Transfer your NCB: You can transfer full benefits of No Claim Bonus when you shift your motor insurance policy from another company to ITGI. The discount rate remains the same, provided you show evidence that you are entitled to No Claim Bonus from your previous motor insurance Renewal notice or Letter confirming the NCB entitlement from the previous insurer or NCB declaration Additional discounts: Members of recognised Automobile Associations in India can avail a discount of 5% on the OD Premium subject to a maximum of Rs. 200.00 Discount for Anti-theft Devices: In case you have installed Automobile Research Association of India (ARAI) approved anti theft device in your vehicle, you get a discount of 2.5 % on the OD Premium to a maximum of Rs. 500.00 Cover yourself and your family: You can also opt for personal accident cover of up to Rs. 2 Lakhs for other unnamed passengers in your car. For e.g. your family, relatives, friends etc. Customise your insurance with additional covers: Electrical and/ or non-electrical items fitted to the vehicle can be insured separately. For example: fog lights, music system In case of vehicles fitted with bi-fuel system such as Petrol/ Diesel and CNG/ LPG, permitted by the concerned RTO, the CNG/LPG kit fitted to the vehicle is to be insured separately at an additional premium of 4% on the value of such kit. You need to specifically declare this in the proposal form. Sum Insured with IDV The vehicles are insured at a fixed value called the Insured’s Declared Value (IDV). IDV is calculated on the basis of the manufacturer’s listed selling price of the vehicle (plus the listed price of any accessories) after deducting the depreciation for every year as per the schedule provided by the Indian Motor Tariff. If the price of any electrical and / or electronic item installed in the vehicle is not included in the manufacturer’s listed selling price, then the actual value (after depreciation) of this item can be added to the sum insured over and above the IDV. Two wheeler ITGI’s comprehensive Package Policy for two wheelers covers Loss or damage to the vehicle insured, Personal Accident and Third Party Liability. What the Policy Covers: Loss or damage to your vehicle: Any loss or damage caused to the vehicle due to the following natural and man made calamities. Natural Calamities – Fire, explosion, self-ignition or lightning, earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide. Man made Calamities – Burglary, theft, riot, strike, malicious act, accident by external means, any damage in transit by road, rail, inland waterway, lift, elevator or air. Personal accident cover: The motor insurance provides compulsory personal accident cover of Rs. 1 lakh for individual owner driver of the vehicle insured while traveling in, mounting or dismounting from the vehicle. You can also opt for a personal accident cover for pillion rider. Third party legal liability: Protects against legal liability arising due to accidental damages, any permanent injury/ death of a person and/or any damage caused to the property. Key Benefits Cashless claim facility at our Cashless Garage Network all across India. No Claim Bonus:  If you do not make a claim during the policy period, a No Claim Bonus (NCB) is offered on renewals. This discount can go as high as 50%. (NCB will only be allowed provided the policy is renewed within 90 days of the expiry date of the previous policy.) Transfer your NCB:  You can transfer full benefits of No Claim Bonus when you shift your motor insurance policy from another company to ITGI. The discount rate remains the same, provided you show evidence that you are entitled to No Claim Bonus from your previous motor insurance. You can present the following: Renewal notice or Letter confirming the NCB entitlement from the previous insurer or NCB declaration Additional discounts Members of recognised Automobile Associations in India can avail a discount of 5% on the OD Premium subject to a maximum of Rs. 50 Discount for Anti-theft Devices:  In case you have installed Automobile Research Association of India (ARAI approved) anti theft device in your vehicle, you get a discount of 2.5 % on the OD Premium to a maximum of Rs. 500. Sum Insured The vehicles are insured at a fixed value called the Insured’s Declared Value (IDV). IDV is calculated on the basis of the manufacturer’s listed selling price of the vehicle (plus the listed price of any accessories) after deducting the depreciation for every year as per the schedule provided by the Indian Motor Tariff. If the price of any electrical and / or electronic item installed in the vehicle is not included in the manufacturer’s listed selling price, then the actual value (after depreciation) of this item can be added to the sum insured over and above the IDV.

Source: http://www.iffcotokio.co.in

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Top 10 cheap car insurance tips

Top 10 cheap car insurance tips

1. Compare car insurance quotes before buying. You can easily do this through an insurance aggregator like policybazaar.com. Typically you can save up to 55% on you insurance premium.
2. Compare both prices and features.
3. Watch-outs:

a. IDV : This is the maximum money you can get in case of total loss. To reduce your premium your agent can reduce this amount.

b. Voluntary excess : Say in case of an accident, you opt to pay for the first 5 thousand rupees. Then this amount can be reduced from your premium. But there can be a problem, if your agent does this without informing you. Which is what happens quite a bit, so watch-out.

c. No claims bonus : Please ensure you get the right no-claims bonus. In case you take more than you are entitled to, your claim if any may not be processed.

4. Your cover note : This is valid for the first 60 days, after that you must get the final policy document. If you do not receive this, you may not be insured. Please ensure your broker / agent provides you this.
5. Cashless : Do not get over excited by this. Most companies have a cashless settlement process with multiple partners in every city. A broker can guide you regarding which companies have a cashless settlement tie-up with which company, and garage.   
6. Always buy insurance from an insurance broker. Ask for the broker’s license number and cross check it on the IRDA website. These brokers are paid same amount irrespective of the company’s policy they sell. So they are not biased to any particular insurance company. An Insurance agent on the other hand can sell policy of just one company and hence will always push that company and its benefits.
7. You can get additional personal accident Insurance for passengers and driver. This is a great way to insure people who travel in the vehicle with you.
8. Be truthful in your declarations on the proposal form. This will ensure that your genuine claims will be paid.
9. There is a lot of mis-information in the market. So get everything in writing or cross check it on a reputed website like policybazaar.com.
10. Always drive safely. Never drive under the influence of alcohol. Over time this will reduce your premium while covering the risk.

Source:http://www.policybazaar.com

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Insurance firm fined, directed to pay entire car claim

TNN | Mar 26, 2012, 05.45AM IST

 

 

CHANDIGARH: Accusing an insurance company guilty of unfair trade practice, the consumer forum directed it to pay the insured amount of the car to the complainant. Besides, the forum has also imposed a fine of Rs 25,000 on the company.

The complainant Umesh Chander Gupta, a Sector 9 resident from Panchkula, had got his car insured with National Insurance Company Limited for an assured sum of Rs 5,23,208, for a period between October 12, 2009 and October 11, 2010.

My car met with an accident on the night of October 30, 2009 as a stray cow came in front of the vehicle. I informed the insurance company and submitted the required documents. But the surveyor, without assigning any reason, disallowed a major portion of repairs and assessed the claim for Rs 26,588 as against the actual claim of Rs 69,005, said Gupta.

The insurance companys lawyer, however, pleaded the surveyors assessment of the claim amount was right and the company is not liable to pay any more claim amount to the complainant.

After listening to the arguments, the forum maintained that the surveyor, without assigning any reason, had disallowed the claim amount of Rs 29,614, which amounts to deficiency in service on part of the company.

The forum has directed the insurance company to pay Rs 29,614 to the complainant, apart from another Rs 15,000 to be paid as compensation for mental agony and harassment and Rs 10,000 to be paid towards the litigation costs.  

 

Source:http://timesofindia.indiatimes.com

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By Centre for Investment Education and Learning (CIEL)

A 'liability only' insurance policy is the minimum cover that a car owner needs to have throughout the ownership of the vehicle. It covers death or bodily injury to a third person or damage to the property of a third person caused by the insured vehicle. This policy does not cover damage to the insured person's own car. The maximum amount that the insurance company is bound to pay for damage to a third party's property will be limited by the cover taken. In case of personal injury or death, there is no such limit and the insurance company may be bound to pay a compensation that may include medical expenses, loss of income and loss of capacity to earn.

Filing an FIR

If medical assistance is sought, it is mandatory for the doctor to report the incident to the police and file an FIR. The copies of receipts of medical expenses should be retained. Otherwise, an FIR needs to be filed by the policyholder or third party at the nearest police station.

Record and claim

It is a good idea to make a written record of the accident, including the actions of the victim and the policyholder. The claim intimation needs to be made to the insured's agent or the insurance company, giving details of the loss, injury or death.

Claim form

The claim form and supporting documents need to be submitted within 30 days of the accident, with a narration of the nature and description of the accident, and copies of a valid policy, registration documents of the vehicle, driving licence of the person who was driving the car, and the FIR.

Points to note

The insurance cover will hold even if the vehicle is being driven by someone (other than the owner/insured) with the permission of the insured, such as a driver.

Seeking medical assistance for the injured is important from legal and humanitarian angle.

The insurance company can refuse liability if the accident did not occur during the policy period or if the person driving the car did not have a valid driving licence. 

Source:http://economictimes.indiatimes.com

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