India’s Insurance regulator, IRDAI, has approved a new motor floater insurance policy, wherein the policyholders can buy a single car insurance policy for multiple vehicles. Driven by the rising number of cars in India, the move needed to be part of India’s insurance industry. The Motor Floater Policy will cover all vehicles, whether four or two. Customers who choose the motor floater offering will also receive a discount on their premium for each additional vehicle they insure through the motor floater offering. Ultimately, it will save customers the time and effort of maintaining separate motor insurance policies for each vehicle they own.
What is Motor Floater Insurance?
A single motor insurance policy covers multiple vehicles. All private vehicles registered under a single owner are covered by this type of motor floater insurance policy. Up to five vehicles may be covered by the multi-vehicle policy. The motor floater policy eliminates the inconvenience of paying multiple premiums and remembering renewal dates.
Benefits of Motor Floater Insurance
Having a single policy for multiple vehicles has many benefits. Let us take a look at those benefits:
- Makes Life Easier: Multiple car insurance policies can be challenging to manage and remember since every car plan has its renewal date, premium paying terms, etc. With the multi-floater policy, it feels like living under one roof. You just have to pay a single premium and you are good to go. No more premiums to remember.
- Saves Time: Managing multiple policies can be time-consuming for a policyholder, and it is easier to get all the details in one place and make a decision.
- Flexibility: The customer can add or remove vehicles from a motor floater insurance policy because the entire procedure can be finished through a smartphone app. The protection for a specific vehicle can also be turned on or off by the user as needed. However, there will be coverage available around-the-clock for damage from fire or theft to the vehicle.
- Change Policy Details Easily: While it would be a laborious process to change the details of individual policies, changing the insurance plan's details for a multi-vehicle policy can be done all at once.
Inclusions Under Motor Floater Insurance
Here is a few inclusion that you can enjoy under the motor floater:
- Damages brought on by the insured vehicles catching fire, exploding, or self-igniting.
- Additionally, riots and other illegal activities do not harm the insured car.
- Any damage to the insured vehicle brought on by a natural disaster, such as a typhoon, hurricane, storm, slide, etc.
- A motor floater policy also covers any third-party liabilities from the insured vehicle.
How Does Motor Floater Insurance Work?
Multi-car insurance works the same way normal motor insurance works. Consider it as an add-on cover that will cover more than one vehicle. The vehicle with the highest insured declared value under a motor floater policy will be considered the primary vehicle, and the remaining cars will be referred to as secondary vehicles. The sum insured under the motor floater policy will have the highest IDV regarding the insured amount.
Q. How many vehicles can be covered under multi-car insurance?
A. Five vehicles can be covered under the policy registered under a single owner.
Q. Can I add a car to my existing multi-car insurance policy?
A. You can add a new vehicle, and the coverage will be extended to the new car.
Q. Will my premium reduce if I add another vehicle under the multi-car insurance policy?
A. Yes, you can get a discount from your insurer by buying a motor floater policy for each of your vehicles, which will ultimately lower the cost of your premium.
Q. I have sold my car, can I cancel my multi-car insurance policy?
A. Yes, you can cancel your policy anytime you want. Motor floater insurance is similar to basic motor insurance.