|
|
Cars comprise a significant proportion of Indian automobile market. Accounting for nearly 14% of entire Indian automobile sales in recent times, the demand for cars in India has been followed up with a remarkable rise in the production, quality and technology. And that invariably has brought in the issue of car insurance in the open. Some of the major car insurers in India include the New India Assurance, United India Insurance, HSBC, Bajaj Allianz and ICICI Lombard.
Car insurance has been made mandatory as per the provisions of the Motor Vehicles Act. Usually, a car insurance policy remains effective for a period of one year only and can be renewed consequently. |
|
Such insurance policies for shorter durations, especially in respect of cars are relevant in the context that it attracts smaller premiums. Further, there are situations when the owner might be thinking in terms of selling of the car within a short duration and thus a shorter car insurance policy makes sense.
The usual car insurance premium for shorter durations is as follows:
| Time frame not Exceeding |
Car Insurance Premium (%) of Annual Rate |
| One Week |
10% |
| One Month |
25% |
| Two Month |
35% |
| Three Month |
50% |
| Four Month |
60% |
| Six Month |
75% |
| Eight Month |
85% |
| More than Eight Months |
Full Annual Premium |
In the event of car insurance, the car insurers in India provide for the following risks in addition to, the usual cover that are allowed:
- Personal insurance cover for the insured, spouse and the unnamed passengers.
- Legal liability of the employees of the insured.
- Wider legal liability of the driver of the car.
The car insurers determine the car insurance premium based on factors like the cubic capacity, use of the car, usual are where the car operates and the total monetary value of the car proposed for the insurance.
|
Automobile News
