There are two kinds of Motor Vehicle Insurance:
"Motor Policy A" (Third Party Risk) the 'Act Only Policy' covers third party damages up to Rs 6000/- only. Risk from fire and theft requires an additional premium.
"Motor Policy B" (Comprehensive Insurance Policy) protects you from the following eventualities:
1. Damage due to man made or natural calamities: Natural calamities include fire, floods, hurricanes, landslides, cyclones or earthquakes. Man made calamities include, theft, riots, strikes, malicious acts of vandalism or damage occurring in transit via road, rail, waterways or air.
2. Personal accident cover: In the event of an accident, it is important that you have personal accident coverage. You may also opt for a personal accident cover for passengers traveling with you, just to be on the safe side.
3. Third party legal liability: This would cover you for legal liabilities that result in permanent injury/death or damage to property, in the event of a mishap.
The insurance policy is valid for a period of one year. If you do not make a claim during the policy period, you are eligible for a discount, which is adjusted against the renewal premium. In case your policy expires, you can still avail the no claim bonus if you renew the policy within 90 days of its expiry.
Once you submit these documents, the insurance company will inspect the damaged car and authenticate the estimated cost of repairs. Once the surveyor has completed the inspection, the car can be repaired.
Present the final bill for the repairs and a stamped receipt from the workshop to the Insurance Company for settlement of the claim. An insurance surveyor will once again certify the repaired car, after which, you can take delivery of it