COMPARATIVE STUDY: BFSI

Do You Own a Taxi?

And are you weighing your insurance options?

Do you own a commercial vehicle and looking to know more about its insurance? Firstly, know that not all vehicle insurance policies are created equal. When you are looking to protect commercial vehicles, the requirements and needs are much different than for a car meant for personal use. How can you be sure you understand those requirements and have the protection you need? In this report we look at the various aspects of insurance for your vehicle, to help you understand the concept in its totality—including the add-on covers and the exclusions that we may be prone to miss or dismiss.

What Does the Package Policy Offer?

Insurance cover for third-party liability Liability is covered for an unlimited amount in respect of death or injury and damage to third-party property, for Rs 750,000 for commercial vehicles and Rs 100,000 for scooters/motorcycles.

Cover for loss or damage to vehicle Insurance is provided for loss or damage to the vehicle and its accessories caused due to

• Fire, explosion, self-ignition or lightning

• Burglary, house-breaking or theft

• Riot or strike

• Malicious act

• Terrorist act

• Earthquake damage (fire and shock)

• Flood, typhoon, hurricane, storm, tempest, inundation, cyclone and hailstorm

• Accidental external means

• While in transit by road, rail, inland, waterway, lift, elevator or air

• By landslide/rockslide Towing facility for disabled vehicle

The policy pays for towing charges from the place of accident to the workshop, up to a maximum limit of Rs 300 for scooters/motorcycles and Rs 1,500 for cars and commercial vehicles.

The Major Exclusions

1. Any accidental loss or damage and/or liability caused, sustained or incurred outside the geographical area 2. Any claim arising out of any contractual liability 3. Any accidental loss/damage and/or liability caused, sustained or incurred whilst the vehicle insured herein is a) being used otherwise than in accordance with

the ‘limitations as to use’, or b) being driven by or is for the purpose of being driven by him/her in the charge of any person other than a driver as stated in the driver’s clause 4. a) Any accidental loss or damage to any property whatsoever or any loss or expense whatsoever resulting or arising there-from or any consequential loss b) Any liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel (combustion to include any self-sustaining process of nuclear fission) 5. Any accidental loss/damage or liability, directly or indirectly caused by or contributed to by or arising from nuclear weapons material 6. Any accidental loss/damage liability directly or indirectly or proximately or remotely occasioned by/contributed to/by or traceable to or arising out

of or in connection with war, invasion, the act of foreign enemies, hostilities or war-like operations (whether before or after declaration of war), civil war, mutiny, rebellion, military or usurped power, or by any direct or indirect consequence of any of the said occurrences

Filing of Claims

The increasing number of accidents and incidents of vehicle thefts has made it essential for policyholders to know how to file vehicle-insurance claims.

When the accident happens, call your insurance company representative as soon as possible—even if you are away from home or someone else caused the accident. It does not matter where the accident takes place. If your vehicle insurance policy is in force, you remain insured throughout the country.

In case of vehicle theft, inform your insurance company’s representative immediately after lodging an FIR (first information report). Your insurance company will handle the claim process as your advocate.

Here’s the information you need to submit while filing a claim:

• Your contact numbers

• Car insurance policy number

• Name of insured person

• Date and time of accident

• Vehicle number

• Make and model

• Location of loss

• Brief description of how the accident took place

• Name of driver

• Place and contact details of the insured person if the person intimating the claim is not insured

In accident cases—

a) Note the number of the other vehicle involved in

the accident. b) Note down the names and contact details of

witnesses. c) Contact the toll-free number of your insurer and

get your claim number/reference number. d) If the claim intimation is delayed, your insurer has

the right to reject the claim. e) In case of vehicle theft, the insurance company should at least be informed on the phone right after you inform the police. The written intimation can follow later. f) You need to check with your insurance company representative on how to proceed and what forms or documents will be required to support your claim. No repair should be done before survey of the vehicle. The following documents will need to be submitted for accident claims: • Claim form duly signed • Registration certificate (RC) copy of the vehicle • Driving license copy • FIR • Original estimate • Original repair invoice and payment receipt

Your insurance company may require a ‘proof of loss’ form as well as documents relating to your claim (such as medical and car-repair bills and a copy of the police report). Supply all the information to process your claim.

Maintain a record of all your expenses as a result of the accident which may be reimbursed under your policy. Some insurers also provide cashless facility for repair of your vehicle.

Claim Procedure

Although filing a claim is a simple process, it is important to do it properly or else the claim can become null. After you submit your claim form and the relevant documents, the insurer appoints a surveyor to inspect your vehicle and submit his/her report to the insurance company. You also get the details of the surveyor’s report.

No repair should be done before survey of the vehicle. Survey will be arranged on receipt of claim intimation and submission of detailed estimate of repairs from the repairer. In case of major damage to the vehicle, the insurer arranges for a spot survey at the site of accident. You can undertake repairs only on completion of the survey. Once the vehicle is repaired, submit duly signed bills/cash memos to the insurer.

Some insurers have the surveyor re-inspect the vehicle after repairs. In such cases, you should pay the garage expenses and obtain a proof-of-release document (this is an authenticated document signed by you to release the vehicle from the garage after it is repaired).

Once the vehicle has been released, submit the original bill, proof of release and cash receipt from the garage to the surveyor. The surveyor sends the claim file to the insurance company for settlement along with all the documents. Finally, the insurance company reimburses your claim.

For the comparative assessment, we chose eight plans based on consumer feedback and product structure. The parameters on which we have compared them include personal accident cover for owner driver and for paid driver, personal accident cover for passengers, cover for lamps, tyres/tubes, mudguards, bonnet, bumpers, electrical/electronic accessories, etc., EMI cover, NCB protection, daily allowance benefit, legal liability to paid driver and to passengers, cover for CNG/LPG/biofuel kits, cover for parts of engine, car key replacement, and discount for customisation of vehicle for the visually impaired/ physically or mentally challenged.

We gave high weightage (10 points) to consumer feedback, which helped in determining product quality as well as the most important and beneficial variables. These variables have a direct bearing on the product structure.