Why should you choose insurance over warranty?

We all are fascinated about the concept of extended warranty with the purchase of a product be it an electronic item or a car. And we have to admit that we are often tempted by the offer. But how many of us actually stop to consider an extended warranty and differentiate it from other product that helps mitigate risk at a cost, like an insurance cover. When you buy a new car you receive a warranty from the manufacturer that the car is made available to you in a perfect condition. What we forget is that an unconditional warranty is embodied in the Sale of Goods Act, 1930. Which means this warranty should be applicable through a time period generally accepted as the lifetime of the car.

If it’s breached then we have the right to have the manufacturer either replace or repair a particular part or the product itself. Besides, let’s not forget that the customer can always approach the consumer court for relief in all such circumstances. However, the extended warranty often sold, generally claims to cover limited items like defects in the product, malfunction, accidental damage or in some cases it could be an all risk cover but always for a limited period of time. However, the question here is whether extended warranties adhere to the rules set by the Sale of Goods Act? The question is intriguing because the two concepts (warranty and car insurance) seem very similar but are distinct at the same time from each other.

The article will gives you insights on what is warranty and insurance? A warranty, is essentially an assurance to another person with certain conditions which if not fulfilled couldn’t claim for damages. A car insurance contract on the other hand is simply a contract where for a specified consideration, one party undertakes to compensate the other for loss relating to particular subject such as third party damages, damage to own car, accidental coverage due to natural calamities, stealing, burglary etc.

While having a closer look at the insurance policy and warranty, we can see that insurance effectively provides cover for practically every eventuality, whereas the warranty and an extended warranty, with all their limitations and exclusions, may not.

A car insurance contract is a contingent contract. A contingent contract is a contract in which promise is conditional and the contract shall be perform only on the happening or not happening of some future uncertain events. Essentially, the car insurance provider promises to save the subscriber from loss caused due to risks listed in the insurance policy.

However, the challenge is that though extended warranties seem like distinct concepts, they exhibit all the characteristics of an insurance contract and those who offer them argue to treat them as warranties portraying an edge over insurance. 

This means that despite the insurance sector being highly regulated, extended warranties escape the applicability of stringent insurance regulations entirely and are fed into the minds of people for purchase.

So, next time when you have to choose between warranty and insurance, stop thinking that warranty offers more than what car insurance provides. Infact, risk covering car insurances would be more economical and useful to customers than an extended warranty. Insurance is a regulated product and easier to claim; and the high cost of extended warranties is disproportionate to the risk it covers.

[Source: https://carinsuranceonline2015.wordpress.com/2016/06/25/why-should-you-choose-insurance-over-warranty/]

How to make motor insurance claim or procedure after accident in India

I had a car accident while I was in India last year albeit a minor one. You might be in a similar situation now or in future. So I’m documenting the procedure for how to make a car insurance claim or procedure after accident in India.

In contrast to what happens abroad, the driver of the other was furious and wanted to get into a fight. Thankfully it was near a busy signal and a policeman was available nearby to resolve the issue. This is in stark contrast to what happens abroad. We just park the car on the side and wait for a policeman to come and issue a report to both parties. We make our claims based on that and that is reason we have car insurance. There is no need to get too emotional if there is no physical injury.

Putting that aside, in a country like India, owning a car is no longer an ‘owner’s pride’ kind of thing. It has become or is becoming a necessity in life. As banks are willing to lend money to help you buy your dream car, more and more people are queuing up for car loans.

But your dream vehicle can meet an unfortunate accident at any point of time. To cover these risks you need to take out a car insurance which is also known as motor insurance or auto insurance.

Motor Insurance  claim or procedure in India

Nobody wants to get involved in a car accident. It not only ruins your entire day, it can cause multiple injuries and even deaths in some serious cases. There is hardly any driver in India who has never got involved in a car accident throughout his life. It is true you cannot stop accidents from happening but you can be well prepared to meet the financial losses that results from an accident by buying a proper Motor Insurance.

But before you can use that insurance money to recover your loss and back to normal as it was before the accident, there are a few dos and don’ts which should kept in mind in the process of making a car insurance claim after an accident in India.

What you should do after an accident?

Car_Accident_Insurance_Claim_Procedure An individual is full of anger and varying emotions immediately after an accident. These negative emotions will try to take control of your self.

In these trying times, you must keep your calm and try to do the following with the best of your abilities.

You should make an attempt to prevent further accidents by keeping the flashers/emergency lights on. If the lights are not working then you should have a flashlight with you for your own safety while you wait by the side of the road. If possible place a glowing tape hazard triangle 10-20 ft behind your car.

Even if there are no serious injuries, it is always prudent to call the police. You may need a police report to file a car insurance claim even if you are just claiming for the damage to your vehicle. The vehicles involved in the accident must remain where they are unless they are proving to be a hindrance to the traffic. If so, take pictures from all possible angles before moving vehicle to the side of the road.

When the police arrive at the scene, make sure you tell the investigating officer exactly what happened. Do not speculate or guess; just tell it to the officer what you really know. Also ensure that the statements given by the other people involved in the accident are accurate as well. Try to make sure your story is heard first by the officer. Also do not admit it is your mistake openly if there is even small doubt. This can be used against you in some cases during your claim procedure.

If there is visible damage to your car, then you use at least your cell phone camera to take a picture of those damaged areas. If you have visible injuries, photograph them also. But you should never interfere with the police investigation. If you are unable to take pictures at the accident scene, do click pictures as soon as possible before police arrives.

Typically an investigating officer should take the name, address and telephone number of all the persons involved in the accident but if he fails to do that then it is your duty to take down the details from the people involved in the accident.

The motor insurance company needs to be notified as soon as possible. There are many policies which require immediate reporting; so you must co-operate fully in this regard. If there are medical benefits in the insurance coverage then you must submit the accident related medical bills to the insurance company. Even better, ask for guidance on how to proceed from your insurance agent/company itself.

Always maintain a file and keep all documents related to the accident together. The information should include all original bills, the claim number, the details of the adjuster who is handling the claim made by you, the names and contact information of all the persons, receipts of all expenses incurred due to the accident.

The most important thing to do after having a car accident is to consult your attorney, if you have one. He will be able to protect your rights and ensure that no valuable evidences are destroyed. Since some motor insurance companies ask for a statement immediately after an accident, make sure that you speak to your attorney before making any statement.

Type of Motor Insurance policies in India

What you should not do after an accident?

Here are the few things that you should not do after a car or an auto accident.

Running away from the scene of the accident – This is very common in India but this is one thing you should never do. Irrespective of the severity of the damages, one should always stop the car and check on the other persons who are involved in the accident. If anyone is found injured then make all efforts to provide medical assistance. This is a kind act and may help you later on.

Not informing the police – All kinds of accidents need to be reported to the police. This is actually lawful and will help you at the time of insurance claim. The driver of the other car may try to reach a settlement with you and request you not to inform the police; do not fall for it. There is a huge chance that his auto insurance policy is either fake or outdated. The police report that you file will help you in filing an insurance claim.

Getting unnecessarily aggressive – Many people make the cardinal mistake of losing the temper after an accident. On the contrary, the first thing you should do is to enquire about the condition of the other driver. Take a deep breath and try to analyze the situation. Always be polite but never take the blame on yourself. This would mean that you are accepting the legal liability of the accident.

Forgetting to document the accident site – After you have called the police, you need to document the wreck. Note down the other driver’s name, address, name of the insurance company and policy number. It is mandatory for every car owner to have a 3rd party insurance; so these little information will help you in getting a financial compensation for the insurance company.

Ignoring the post accident formalities – It is very important to file an insurance claim in the shortest time possible. Most of the insurance companies in India have a time limit for filing an auto insurance claim.

Filing a claim with the auto insurance company

There are basically 2 types of auto insurance – comprehensive motor insurance and third party motor insurance. The comprehensive car insurance cover any losses that arises due to damage or theft of the vehicle or death of anyone in the car during an accident.

The third party insurance or Act only Risk type covers the damage inflicted by your car on the other vehicle. It does not cover theft, damage to your vehicle during accidents. Always go for the comprehensive car/motor insurance.

When you file a claim with the insurance company, the company will not cover its depreciated value or the general wear and tear of the company. The claim that you will finally receive will be based on the actual repairs to the vehicle subject to the ceiling created by the Insured Declared Value on the policy document.

You will also need to call the insurance company within a set time-frame and you need to check the policy to know what that time-frame is. The insurance company will also have a preferred garage where you need to tow your vehicle to get an estimate of the damage and cost of repairs.

The insurance company will also ask for a set of documents that will include

Copy of the Insurance Policy

First Information Report or FIR

Properly filled up Claim Form

Vehicle Registration Copy

Driving License Copy

Original Estimate of Repairs

You think that you can prove that other driver is at fault in a court? In that case instead of filing to your car insurance company, you can make a third party insurance claim in the Motor Accident Claims Tribunal. So your insurance policy will not be affected.

Car insurance claim procedure – points to remember

Remember that in-house surveyors can only assess damages upto Rs 20,000. If the damages are above Rs 20,000 it should be assessed by an individual surveyor. It is illegal for your insurance company’s in-house surveyor to assess damage more than 20k as they usually will try to rip you off. The report must be submitted within 30 days of the accident by the independent surveyor.

If you’re not satisfied with the assessment, you can always negotiate with proper reasoning.

Remember, all legal cases pertaining to car accident cases are decided by the Motor Accident Claims Tribunal. You need not be afraid of anything if no fault of ours. Don’t resort to violence with the guy at other end.

If you had lost someone in a car or motor accident and able to prove that other party is at fault, the next of kin will get 50% of the deceased person’s actual income of his/her remaining life as compensation. The court will decide the exact amount. If not, the compensation is fixed at flat Rs. 50,000.The car insurance company can also be included as one of parties in the claim.

If it is a rented car, immediately inform the rental agency. They will take care of the insurance claim. You will have to co-pay for some part of the claim and run-around for a few days to complete procedure.

A car accident is something which we never want to get into. However, in case it happens, nowadays the car or motor insurance claim procedure in India is simple compared to the past.

Hope this was useful. Share your experience of car or motor insurance claim for other readers below. Also point out if any mistake. We’ll be glad to check and rectify.

Source: [ http://blogs.rediff.com/motorinsurance/2016/06/25/motor-insurance/ ]

How to Buy Car Insurance Online Using a Comparison Quotes Website

When you go online to buy insurance the best place to start is an all inclusive comparison site. These sites search all the top companies and present you with four or five of your best quotes based on the information you have provided. These sites are becoming more popular since they allow you to find a quote, compare the price and the coverage with other companies.

You have a car, it gets you back and forth to the important things you must do in your life. All states require at least some form of insurance for you to drive on the road. You must show proof of this insurance for everything from getting your license, in some states, to getting your tags. Shopping around for car insurance is a hassle that most people don't enjoy facing.

It's a pain contacting company after company repeating various information just to buy car insurance. Because of faster internet speeds and more websites offering comparison shopping, consumers have an easier way to buy insurance.

A few of these companies not only allow you to buy best car insurance from them, but they allow you to print your proof of insurance. This is a relatively new feature in which you no longer have to wait for your insurance cards in the mail, saving you the stress and headache of driving around seemingly uninsured.

Being able to compare companies, buy car insurance and print proof of insurance from one site is a very popular idea. Anything that saves time is almost as valuable as saving money. In our busy lives we simple don't have a lot of time to waste, going online to get car insurance is the simplest solution to your insurance needs.

It is important to compare insurance quotes before getting signed up with an insurance policy. When you compare insurance quotes you can rest assured you are saving both time and money because you are guaranteed to get the cheap insurance rates.

[Source: https://carinsuranceonline2015.wordpress.com/2016/06/21/how-to-buy-car-insurance-online-using-a-comparison-quotes-website/]

How to Get Online Car Insurance

Everybody who drives a vehicle needs to have vehicle insurance. There are a lot of car insurance businesses in every area it can be tough to compare their prices. There are a lot of large vehicle companies on the internet, providing competitive policy services prices. Purchase car insurance on the internet and save money and time for yourself. Here following are tips how to get it.
Instruction
1. Prepare a list of your information, together with data about your vehicle. Keep this at the front of you while you seek vehicle insurance companies. You required your driver’s license number plus driving history (also dates of any current accidents) and personal data, like your social security number and your address. For your car you required accident history, mileage, license plate number, VIN (vehicle identification number), model and make.
2. Search vehicle insurance companies on the internet by typing ‘’car insurance’’ into the search engine. A lot of car insurance companies turn up in the search results. Fix with insurance companies you have listened of and can ask family and friends about. Select a Online Car Insurance company that explains you a price comparison of their quotes with other large companies on the internet. You can input your information and car information in once and obtain quotes from a lot of different insurance companies online.
3. Decide what kind your insurance coverage you require. There are a lot of different type of insurance coverage options and coverage policies for vehicle. When searching at the online website of the vehicle insurance coverage, have a look at the insurance coverage policies they provide. A lot of can allow you know the least amount coverage your area legally permits.
4. Enter your date into the PC to obtain a free quote. Ensure the online website states you obtain an online free quote. A lot of smaller insurance companies may let you to enter your data but will not show the quote information on the internet. They offer to make call you and chat to your regarding your car insurance requirements. An online website
quote is much quicker, and you can get all of the price comparisons at front of you at the same time, with not force to buy.
5. Select an Online Car Insurance company by comparing the quote of the coverage policies and the insurance coverage offered. Select one vehicle insurance company and visit to their online website. Get the car insurance policy to would like to make use of a credit card. A lot of insurance providers let you to print a provisional insurance coverage card instantly and send other in the email at the later date.
6. As a final point, review your insurance contract prior to sign on the marked line. Ensure you are not offering anything important, such as the legal rights to take a legal action your insurance provider for nonpayment.

Car insurance renewal You cannot escape but you can certainly save!

Comparison of car insurance renewal policy

Let us assume, a person by the name of Mr. Nikhil Kumar, a Mumbaikar, purchased a stylish Hyundai Santro car a year back. His policy is about to expire on 30^th September, 2015. In a bid to find and compare available renewal policies for his car, Mr. Kumar visited the portal of GIBL and furnished his and his car’s details. His car details are, a 5 seater Hyundai Santro , AT, petrol with a cubic capacity of 1086. Mr. Kumar made a claim in the first policy year and he opted out for voluntary deduction.

Upon furnishing all the information Mr. Kumar got hold of 15 car renewal policies to compare with. When he started to compare policies on the basis of beneficial features, he found only 3 policies offer all those facilities that he was looking for. Here is a table of top 3 car insurance renewal plans. 

Advance Renewal

Most car insurers tend to raise the price of renewal on or some days before the stipulated renewal date. A lot of car-owners faced a sudden hike on the day of renewal , simply because insurers are well-aware of the fact that car-owners have no option but to grab them by paying more. Hence, it is prudent to start looking for a car renewal policy at least two months in advance.

A week or two can be spent on searching, finding, comparing and selecting the best motor insurance renewal plan so that the renewal policy can be acquired at least 45 days before the lapse of current policy. Even if insurers raised the renewal rates at the time of renewing car policy it won’t be a matter as the policy has already been renewed at a reasonable price.

While comparing a myriad of car insurance renewal schemes, car owners invariably come across a plethora of features on offer by insurers. Since the requirement varies from one car-owner to another, it is prudent for motor insurance renewal seekers to narrow down on features they they need and opt out those costly plans with extensive features that are not relevant for them. This ploy can save them a good amount of money.

expiry of the existing policy, the new policy will come into effect only when the former one ceases to exist. This means the money that car-owners paid for premium earlier will not be lost.

[Source: http://blog.gibl.in/car-insurance-renewal-you-cannot-escape-but-you-can-certainly-save/]