Auto Insurance Types & Coverage Explained
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Auto Insurance Types & Coverage Explained
- 1. AUTO INSURANCE Bisahu Sahu Shreeya Gupta Deepti Thakur
- 3. Introduction 1894- 1st motor car was introduce in U.K. 1895 – 1st motor car insurance introduce in U.K. 1903 –GIC Ltd. was established to transact insurance
- 4. WHAT IS MOTOR INSURANCE? Insurance is protection against ‘unforeseen risk’ It covers against liability damages & unexpected repairs
- 5. Cont.. These liability damages can be of two types:- Bodily injury has been caused to a third person. Property of a third person and own car.
- 6. Importance of Motor Insurance Protection against physical damage. Protection against damage due to natural and man-made calamities. It provide accident cover for individual owners.
- 7. Types of Motor Insurance Policies Private Car Insurance Two Wheeler Insurance Commercial Vehicle Insurance Third Party Insurance Liability Insurance Second Hand Car Insurance Motor/ Vehicle Insurance
- 8. TYPES OF auto insurance Car Insurance Two Wheeler Insurance Commercial Vehicle Insurance
- 9. Private Car Insurance Loss could be a result of an accident / theft. Premium amount is decided on basis of IDV of vehicle
- 10. Cont… changes in IDV make difference to premium. If you raise the IDV, the premium rises. If you lower it down, the premium reduces.
- 11. Coverage under Car Insurance Third Party Liability Coverage Collision Coverage Comprehensive Coverage.
- 12. Third Party Liability Coverage It covers legal liability to a 3rd party It covers injury caused by you to another person. It is legally mandatory in India under MV Act.
- 13. Collision Coverage It protects financially against damage to his/her own car. It pays the insured for damage caused by collision. Damage/loss due to theft is not included.
- 14. Comprehensive Coverage These policy is more extensive & preferred by most people It include damage/theft & 3rd party legal liability. It also cover accessories, engine protector etc.
- 15. Key Benefits of Car Insurance Coverage against loss or damage to insured vehicle Coverage against financial liability of third party. Personal accident cover
- 16. What is not covered in Car Insurance? Loss/damage to the vehicle driven by person without valid driving license Loss/damage to vehicle as a result of intoxication. Loss/damage to engine as result of oil leakage
- 17. Two wheeler Insurance India has one of the largest 2 wheeler production. It is perfect for quick mobility & convenience.
- 18. Two Wheeler Insurance Coverage Loss/damage to your 2wheeler against natural calamities Loss/damage to your 2wheeler against man-made calamities 3rd party legal liability protection .
- 19. Commercial Vehicle Insurance It cover all vehicles used for commercial purposes
- 20. Third Party Motor Insurance It covers 3rd person who has been damaged in an accident Does Not cover damage, theft, injuries of the owner.
- 21. Liability Insurance Insurer agrees to defend its insured in court.
- 22. Second Hand Insurance Need to renew its insurance policy
- 24. What is catastrophe? It cause severe loss, injury or property damage Most often associated with natural events Damage from man-made disasters
- 25. How Insurers Manage Catastrophe Exposures Identifying catastrophe risk appetite Measuring catastrophe exposure Pricing for catastrophe exposure Controlling catastrophe Exposure and evaluating ability to pay catastrophe losses
- 26. Thank you
Editor's Notes
- Motor insurance is a combination of two words i.e. ‘Motor + Insurance’
- In 1951, there were 3,00,000 motor vehicles through out India. In India the vehicle population has already crossed 14 cr comprising of the followings: Two wheelers: 9 crores Motor cars : 3 crores Commercial : 2 crores About 90 lakh motor vehicles (all types) are being added on Indian roads every year Road network at that time was of 4,00,000 km By the year ending 2011, the number of vehicles has gone up by 472 times. Road network has expanded by 11 times only.
- IDV- insured declared value
- Third-party liability is an insurance policy purchased for protection against the actions of another (a third) party. It is purchased by the insured (the first party) from an insurance company (the second party) for protection against damage from the actions of another party (a third party).
- If your car is damaged or destroyed in an accident, collision insurance coverage will typically pay to fix or replace it. Types of covered accidents include hitting another car or hitting a stationary object, like a bridge or a tree
- Announcer (voiceover): Comprehensive coverage is available to protect you against vehicle damages not caused by a collision. For example, it may protect you against vehicle damages caused by: Announcer (voiceover): Theft, vandalism, natural disasters, falling objects, fire, hail, flood, animal damage. When people hear the word "comprehensive," they might think "all-encompassing"— but in car insurance terms, the word has a different meaning. Simply put, comprehensive coverage protects you against damages to your car that are the result of covered perils not related to a collision. Think of a scenario that could cause damage to your car that has nothing to do with striking another vehicle. In many cases, this can include: Theft Vandalism Fire Natural disasters like a hurricane or a tornado Falling objects Damage done to your car by animals A civil disturbance, like a riot that results in damage or destruction of your car As with all insurance policies, you should check with your insurance agent to make sure what perils are included under the comprehensive coverage of your auto insurance policy.
- Two wheeler insurance is another type of popular auto insurance in India. It is governed by the Indian Motor Tariff. This insurance provides protection against natural and man made calamities like: fire, rockslide, landslide, storm, hurricane, flood, earthquake, burglary, theft, riots or any damage caused to the vehicle in transit by road, air, inland waterway or rail. Two wheeler insurance provides mandatory personal accident cover of Rs. 1 lakh to the insurer. This accident cover can also be opted for passengers. It also protects against legal liabilities arising due to third party’s injury/death or damage caused to its property.
- This type of insurance covers all those vehicles which are not used for personal purpose. Trucks, buses, heavy commercial vehicles, light commercial vehicles, multi utility vehicles, agricultural vehicles, ambulances etc are covered under this insurance. The premium is calculated on the basis of the make and model of the commercial vehicle, place of registration, year of manufacture, current showroom price and whether the insurer is individual or corporate. Insurance Companies in collaboration with the automobile manufacturing companies chalk out different kind of easy and less complicated plans for safe and easy insurance policy. HSBC India, New India Assurance, United India Insurance, Bajaj Allianz, ICICI Lombard etc are some of the prominent companies in India which provide commercial vehicle insurance.
- Third-party liability is an insurance policy purchased for protection against the actions of another (a third) party. It is purchased by the insured (the first party) from an insurance company (the second party) for protection against damage from the actions of another party (a third party). An insurance policy purchased for protection against the actions of another party. Third-party insurance is purchased by the insured (first party) from an insurance company (second party) for protection against another party's claims (third party).
- Liability Insurance covers third party liability for bodily injuries and/or death and property damage. Personal accident cover for owner driver is also included. Liability insurance is very important for those who may be held legally liable for the injuries of others, especially medical practitioners and business owners. A product manufacturer may purchase product liability insurance to cover them if a product is faulty and causes damage to the purchasers or any other third party. Business owners may purchase liability insurance that covers them if an employee is injured during business operations. Liability insurance is a part of the general insurance system of risk financing to protect the purchaser (the "insured") from the risks ofliabilities imposed by lawsuits and similar claims.
- Insurance for your second hand car is as good as insurance for your private vehicle
- Risk appetite is a core consideration in an enterprise risk management approach. Risk appetite can be defined as 'the amount and type of riskthat an organisation is willing to take in order to meet their strategic objectives.