Motor insurance

Glossary: Motor Insurance

Insurer – A licensed, legal entity that provides insurance. Insured - The person to whom or on whose behalf benefits are payable under the policy. Add-on cover – An…

  1. Insurer – A licensed, legal entity that provides insurance.

  2. Insured - The person to whom or on whose behalf benefits are payable under the policy.

  3. Add-on cover – An insurance policy extended to cover additional risks.

  4. Zero Depreciation – This policy provides complete coverage for your vehicle- there is no deduction for the value of an asset due to use.

  5. Insurance Calculator – A Motor insurance calculator tool that calculates the premium chargeable for coverage of a vehicle under various car insurance policies. It helps a person determine the premium costs of various policies before making a final decision.

  6. Cashless Garage – Company’s recommended garage where a person can get his insured vehicle repaired. The expense is directly settled by the insurance company.

  7. Endorsement - A written amendment affecting the declarations, insuring agreements, exclusions, or conditions of an insurance policy.

  8. Certificate of Insurance – A document of insurance with details of the insurance plan, the benefits, and principal provisions.

  9. Comprehensive Policy – This policy protects against any loss or damage, partial or total, caused to the vehicle and its insured accessories as a result of natural and man-made calamities. This policy also includes personal accident cover as well as third party legal liability cover. It also covers for fire and theft.

  10. Insured Declared Value (IDV) – This is the depreciated value of the vehicle calculated by the insurance agency and agreed upon by both parties – insurer and insured. The insurance premium is calculated on this value. In the case of a total loss of the vehicle, this is the value payable.

  11. Liability Coverage – The amount of cover your insurance will provide, in a case of an accident, to you and the third party.

  12. No Claim Bonus (NCB) – A bonus given by the insurer to the insured who has not claimed insurance in the previous year of policy cover. It is generally in the form of a lower insurance premium in the coming year.

  13. Own Damage Premium (OD) – Premium that is payable to provide coverage to your car in case of a claim due to damage to your vehicle due to an accident, fire, earthquake, landslides, etc.

  14. Premium – Amount that the policyholder pays to keep the policy in force.

  15. Personal Accident Cover – The amount of cover your insurance will provide in case of Accidental Death.

  16. Proof of Loss – Documentary evidence of the loss incurred by the insured. E.g. vehicle repair bills in case of an accident, police FIR in a case of theft, etc.

  17. Third Party – Someone other than the insured and insurance company.

  18. Third Party Claim - A demand made by someone against the policyholder and the amount that will be paid by the policy holder’s insurance company.

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