Mumbai, Maharashtra, India: Zurich
Kotak General Insurance, an insurer uncovers the top 5 car insurance myths in
India. Many Indian car owners hold misconceptions about car
insurance’s
benefits and workings. Let’s know the truth about the top 5 car insurance myths
in India.
Top 5 myths about car insurance in India
Here’s the guide on reality about the top 5 car
insurance myths in India:
Myth 1: Third-party insurance is adequate
Many car drivers in India believe third-party
insurance
is enough. However, this coverage only protects against damages to third-party
and not own car damages.
Reality
Comprehensive
insurance
offers coverage for own car damages, personal accidents and third-party
liabilities.
Myth 2: No-Claim Bonus is transferable
Few policyholders assume No-Claim Bonus can be
transferred to a new car.
Reality
No-Claim Bonus is linked to the policyholder and not to
the car. It can be transferred to a new policy, but it cannot be transferred to
a new car owner.
Myth 3: Insurance premiums increase with
vehicle age
Many policyholders believe insurance premiums increases
as the vehicle ages.
Reality
Premiums tend to decrease
[MK1] [VC2] with car
depreciation. However, claim experience and other regulatory factors may
influence the insurance premium rates.[MK3] [VC4]
Myth 4: Small repairs are not covered under
insurance
Some policyholders assume that minor repairs are not covered
under insurance.
Reality
Minor repairs are also covered under car insurance
however there is a compulsory deductible and NCB benefit which can be impacted. [MK5] [VC6]
Myth 5: Car
insurance doesn’t cover damage from rat bites[SR(K7] [VC8]
Many policyholders assume that rat bites are not
covered under car insurance.
Reality
Comprehensive car insurance does cover damage caused by
rat bites which many policyholders may not be aware.
Key points to consider while buying car
insurance
·
Understand the terms and conditions of car
insurance policy.
·
Provide accurate information during policy
purchase to insurer.
·
Maintain a good driving record to avoid
high premium rates.
·
Compare insurance plans and quotes annually
before renewing.
·
Consider add-on covers like Roadside Assistance,
Depreciation, Engine Protect, and more to enhance your car insurance coverage.
To conclude
Indian drivers can better navigate through the
challenges of car ownership by uncovering these common car insurance
misconceptions. It is essential to understand the car insurance policy and its
benefits for policyholders to ensure adequate financial safety.
About Zurich Kotak General Insurance
Company (India) Limited (Formerly known as Kotak Mahindra General Insurance
Company Limited)
Zurich Kotak General Insurance
Company (India) Limited
is a 70:30 joint venture between Zurich Insurance Group and Kotak Mahindra
Bank. The Company got its new name ‘’Zurich Kotak General Insurance Company
(India) Limited’’ in the month of August 2024, following Zurich Insurance
Group’s 70% acquisition in Kotak Mahindra General Insurance Company Limited. It
is the youngest and one of the fastest growing non-life insurance franchises in
India.
Kotak
General Insurance was established in 2015 to service the growing non-life
insurance segment in India. The company aims to cater to a wide range of
customer segments & geographies offering an array of non-life insurance
products like Motor, Health, Home etc. As a practice, the company seeks to
provide a differentiated value proposition through customized products and
services leveraging state of art technology and digital infrastructure.