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All about Motor Insurance and Consumer rights

Discussion in 'Insurance & Loan Reviews' started by ramjn, Oct 25, 2012.

  1. ramjn

    ramjn Staff Member Janitor

    Linea 1.3
    Why Motor Insurance?

    Motor insurance gives protection to the vehicle owner against (i). damages to his/her vehicle and (ii). pays for any Third party Liability determined as per law against the owner of the vehicle. Third party Insurance is a statutory requirement. The owner of the vehicle is legally liable for any injury or damage to third party life or property caused by or arising out of the use of the vehicle in a public place. Driving a motor vehicle without insurance in a public place is a punishable offence in terms of the Motor Vehicles Act, 1988.

    Types of Motor Insurance:

    Broadly there are two types of insurances policies that offer motor insurance cover:

    1- Liability Only Policy (Statutory requirement)
    2- Package Policy (Liability Only Policy + Damage to owner’s Vehicle usually called O.D Cover

    Remember that if you take only a Liability Only Policy, damage to your vehicle will not be covered. Hence, it would be prudent to take a Package Policy which would give a wider cover, including cover for your vehicle.

    What Motor Insurance covers:

    The damages to the vehicle due to the following perils are usually covered under OD section of the Motor Insurance policy:

    - Fire, Explosion, Self- Ignition, Lightning
    - Burglary/Housebreaking / Theft
    - Riot & Strike
    - Earthquake
    - Flood, Storm, Cyclone, Hurricane, tempest, inundation, hailstorm, frost
    - Accidental external means
    - Malicious Act
    - Terrorism acts
    - While in Transit by Rail/ Road, Inland waterways, Lift, Elevator or Air
    - Land slide / Rock slide

    What Motor Insurance excludes:

    The following contingencies are usually excluded under the Motor Insurance Policy:

    - Not having a valid Driving License
    - Under Influence of intoxicating liquor/ drugs
    - Accident taking place beyond Geographical limits
    - While Vehicle is used for unlawful purposes
    - Electrical/Mechanical Breakdowns.
    Last edited: Oct 25, 2012
    kailasmenon2000, Ravi and sungoa2010 like this.
  2. ramjn

    ramjn Staff Member Janitor

    Linea 1.3
    How to make a Claim?

    Formalities for a motor insurance claim

    A claim under a motor insurance policy could be

    - For personal injury or property damage related to someone else. This person is called a third party in this context) or
    - For damage to your own, insured, vehicle. This is called an own damage claim and you are eligible for this if you are holding what is known as a package or a comprehensive policy.

    Third party Claim

    In a third party claim, where your vehicle is involved, it is important to ensure that the accident is reported immediately to the police as well as to the insurance company.

    On the other hand, if you are a victim, that is, if somebody else’s vehicle was involved, you must obtain the insurance details of that vehicle and make an intimation to the insurer of that vehicle.

    Own Damage Claim

    In the event of an own damage claim, that is, where your own vehicle is damaged due to an accident, you must immediately inform insurance company and police, wherever required, to enable them to depute a surveyor to assess the loss.

    Do not attempt to move the vehicle from the accident spot without the permission of police and the insurance company.
    Once you receive permission for removal of the vehicle and for repairs, you can do so.

    If your policy provides for cashless service, which means you do not have to pay out of your pocket for covered damages, the insurance company will pay the workshop directly.

    In either of these situations, you must intimate the insurance company immediately.

    Theft Claim

    If your vehicle is stolen, you must inform the police and the insurance company immediately. In addition you must keep the transport department also informed.

    As soon as you receive the policy document, read about the procedures and documentation requirements for claims rather than wait for a claim to arise.

    If you have to make a claim, ensure that you collect all the required documents and submit them along with the requisite claim form duly filled in, to the insurance company.

    There may be certain specific documentation requirements for specific types of claims. For instance in respect of a theft claim, there is a special requirement that you should surrender the vehicle keys to the insurance company.
    Last edited: Oct 25, 2012
    Ravi, Ashpalio, naveen2cool and 2 others like this.
  3. ramjn

    ramjn Staff Member Janitor

    Linea 1.3
    Consumer Grievance

    • If your insurance company does not resolve your complaint to your satisfaction you can escalate your complaint to IRDA.
    • If your complaint is suitable for taking to the Insurance Ombudsman IRDA will help you resolve it by taking it up with the insurance company.
    • For disputes where enquiry or adjudication are required you should approach the Consumer Forum or Courts.

    The process/procedure of recording the Grievance


    Step 1 - Report to GRO of Insurance Company

    - Approach the Grievance Redressal Officer of the insurance company where you got your policy.
    - Give your complaint in writing along with the necessary support documents.
    - Take a written acknowledgement of your complaint with the date.
    - Download the latest contact list of GRO’s of Insurance Companies here, GRO's of Insurance Companies

    Step 2 - Report to IRDA

    You enter into step 2 if the issue is not resolved to your satisfaction by the Insurance Company.

    Now, you have 3 options.

    1. Approach the Grievance Redressal Cell of the Consumer Affairs Department of IRDA:

    - Call Toll Free Number 155255 or Send an e-mail to complaints@irda.gov.in

    2. Send a letter or fax to IRDA with your complaint:

    - Download the complaint form from Complaint Form

    - Fill and send by post or courier to:

    Consumer Affairs Department
    Insurance Regulatory and Development Authority
    3-5-817/818, United India Towers, 9th Floor
    Hyderguda, Basheerbagh
    Hyderabad – 500 029

    Or Fax to 040-66789768

    3. Make use of the Integrated Grievance Management System:

    - Register and monitor your complaint at IGMS Portal

    If you use the IGMS, you can track and monitor your complaint online.

    Step 3 - Insurance Ombudsman

    You may also directly come to this step after step 1 if the below listed criteria is met. You may also enter into Step 3 as per the recommendation from IRDA as well.

    Insurance Ombudsman - The Insurance Ombudsman scheme was created by Government of India for individual policyholders to have their complaints settled out of the courts system in a cost-effective, efficient and impartial way.

    There are 12 Insurance Ombudsman in different locations and you can approach the one having jurisdiction over the location of the insurance company office that you have a complaint against.

    You can approach the Ombudsman with complaint if:
    - You have first approached your insurance company with the complaint and
    - They have not resolved it
    - Not resolved it to your satisfaction or
    - Not responded to it at all for 30 days
    - Your complaint pertains to any policy you have taken in your capacity as an individual and
    - The value of the claim including expenses claimed is not above Rs 20 lakh

    Your complaint to the Ombudsman can be about:
    - Any partial or total repudiation of claims by an insurer
    - Any dispute about premium paid or payable in terms of the policy
    - Any dispute on the legal construction of the policies as far as it relates to claims
    - Delay in settlement of claims
    - Non-issue of any insurance document to you after you pay your premium

    Link to the complete list of Insurance Ombudsman offices - Insurance Ombudsman Offices
    Last edited: Oct 25, 2012
  4. ramjn

    ramjn Staff Member Janitor

    Linea 1.3
    Last edited: Oct 25, 2012
  5. Ravi

    Ravi Staff Member Janitor

    Grande Punto 1.3
    Excellent and detailed information Ramesh. Specially, the escalation process is important information to know.

    And I feel for two wheelers (most cases), Liability Only Policy or Third Party Policy is better to take, as we never use insurance. I was just calculating, how much extra amount I paid for my bike, on name of Package Policy.
  6. atulkumbhar

    atulkumbhar Amatore

    Grande Punto 1.3
    Team i have a question here,
    Insurance policy supplied by Fiat i.e. Future Generali India does not covers Thief protection and it is very basic policy which also does not covers the music player if it is stolen from the car when any one tries to do so.
    My cars policy renewal is on this months 24th i need advice what should i add on the existing policy as my car is parked on the road as no parking facility.
    Also there is not alarm system with Fiats center lock....

    Waiting for advice...
  7. ghodlur

    ghodlur Esperto

    Below is attached the standard wordings found in most of the Insurance policy and it states that the vehicle is insured for theft (refer to point no 2, this is the policy wordings of Future generali).

    The Company will indemnify the insured against loss or damage to
    the vehicle insured hereunder and/or its accessories whilst thereon
    i. by fire explosion self ignition or lightning;
    ii. by burglary housebreaking or theft;
    iii. by riot and strike;
    iv. by earthquake (fire and shock damage);
    v. by flood typhoon hurricane storm tempest inundation cyclone hailstorm frost;
    vi. by accidental external means;
    vii. by malicious act;
    viii. by terrorist activity
    ix. whilst in transit by road rail inland-waterway lift elevator or air;
    x. by landslide rockslide.

    Yes the Insurance policy doesnt cover the Music player which is fitted from outside other than the OEM provided in which case you need to pay an additional premium to insure the music player.

    Fiat cars are provided with rolling code immobilizer and this is sufficient to prevent the car being driven away in the absence f the matching key. This acts like an anti theft device. Yes, there will be no alarm in case somebody tries to break into the car when locked.

    Since you park you car on the road, suggest you to opt for the zero depreciation and windshield protection add on covers in addition to the normal policy. Also try to get a good cover for your car.
  8. atulkumbhar

    atulkumbhar Amatore

    Grande Punto 1.3
    thanks for your reply but as you have mentioned that Insurance does not covers the music player fitted from outside, but Mr.Shoeb from SKY Fiat said after having a communication with Insurance person that the company (OEM) music player is also not covered if there is a theft attack only covered is your mobile and Laptops nothing else(even though add on options are taken in policy.)..... I have asked him to confirm again and he has said this is true....
    Now my worry is should i renew the Future Generali Insurance with Add on or should go for any other Insurance company...
  9. ghodlur

    ghodlur Esperto

    Let me confirm the same during my forthcoming workshop visit.
    These add on which I referred in my earlier post are generally offered by most of Insurance co. Try to get quotes from those Insurers who have the cashless tie up with Fiat workshop. Do a comparison of like to like sections and take an informed decision.
  10. atulkumbhar

    atulkumbhar Amatore

    Grande Punto 1.3
    Ok Friend,

    I will check the same.
    Actually yesterday evening i visited SKY Service station of my cars repair work, i had the same discussion with Mr.Bhupendra he said there is no such things thief is also covered and Music player is also covered. Now i am a bit confused so tomorrow i am going to Future generali office and will do a final cross check with them.

    Will update the details after discussion with Future Generali...

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