Meevy

Insurance for self and other belongings of common man has become a necessity nowadays. Insurance for self means Life Insurance for individuals. Auto Insurance is the Insurance for cars and other vehicles.

All two wheelers, cars and vehicles whether owned by individuals or Government bodies are being sold with insurance only. Regional Transport offices makes insurance mandatory for all the vehicles (new or old) at the time of registration. By this rule of law car insurance companies are doing roaring business because no vehicle will be allowed to ply on the road without proper valid insurance. We shall take up car insurance.

Today the value of cars range from three lakh to fifty lakh rupees. Car accidents are also very common because of indiscipline amidst the road users. Having purchased car at such a huge price, people have to safeguard the value of cars in times of accidents, to meet third-party claims that are settled in courts from their own pockets.

Here car insurance companies play important roles to safeguard the interest of car owners in case of road accidents. Insurance companies will pay for the damaged cars; will pay for the third party claims. Car insurance companies charge a certain percentage of the value of cars as insurance premium for one year. It is called comprehensive insurance. It covers the car, its driver, passengers inside the car and the public hit by the car. Yearly premium is valid only for one year from the date of payment. Next year if the car was not involved in any accidents or insurance not claimed during the year 25 % no claim bonus is allowed and the premium amount will get reduced by 25 percent. If no claims were made during the year the premium amount paid will be treated as income by the insurance company.