Car and Bike Insurance Part -3

Part-3

In this part we will see about No Claim Bonus, Malus and special on insurance. If you have been paying the premium without any fail and have made no claim on the own damage section of the policy, insurance companies offers special package for those people called No Claim Bonus.

% of No Claim Bonus deductible on own damage premium – if no claim is made on the preceding year is 20%, for preceding two consecutive years – 25%, for preceding three consecutive years -35%, for preceding four consecutive years – 35%, for preceding five consecutive years – 50%.

At the same time when a vehicle owner lodges claim after an accident, the insurer levies certain percentage on the premium amount from the subsequent year. This is called malus and is 10% for a two year old vehicle and goes up to 50% for a four year old vehicle.

Motor Accidental Claims Tribunal (MACT) ensures compensation for victims even where driver or owner is not at fault. The amount ranges from Rs25,000 per person in case of permanent total disability to Rs50,000 in case of death. In hit and run cases too, the act stipulates a payment of Rs12,500 per person in case of grievous injury and Rs25000 in case of death.

As I promised I will bring you the special on insurance in this post. Last week Economic times posted an article thereby made my job easy.

Motor claims can now find digital solution..

How the Online System works?

Under the system, the repairer of the damaged vehicle logs into the system, prepares estimates by selecting the damaged parts from graphics in the system, attaches digital photos of the damaged car to the estimate and sends the estimate and photos online to the insurer through the online mechanism.

The insurer gets all the relevant information required to assess the claim. This way, the insurer can approve the claim within a couple of hours of the car reaching the repairer. In the manual process, this normally takes a few days. The online system will also provide high level break-down of claims statistics to the insurance company. These statistics will be vital in the de-tariff scenario that has started since January ’07.

To provide accurate estimates, the online system needs to have parts prices and labour time data from all car manufacturers. So far in India, Maruti, Tata Motors, Ford Motors and Daimler Chrysler share this critical information. These car makers have now adopted the online system as the estimating and claims processing solution for their dealership networks.

BENEFITS ALL AROUND

The online processing solution covers the entire cycle from claims intimation to settlement. The insured benefits by getting claims settled faster and are assured of the accuracy of the estimate. The repairer benefits as he is able to turn around cars faster and the loss assessor or surveyor can conduct more surveys per day and increase productivity while improving on the accuracy of the survey reports. The future is online, the future is integrated.