Car insurance is an essential financial product for all car owners in India. It helps protect car owners from financial losses that may arise due to damages to the car or third-party liabilities. Car insurance policies in India typically offer several coverage options, including third-party liability, own damage, and personal accident coverage.
One of the most frequently asked questions about car insurance in India is, "How many claims are allowed in a car insurance policy?" The answer to this question can vary based on several factors, including the type of coverage, the insurer, and the policy terms and conditions.
Third-party liability coverage:
Third-party liability coverage is mandatory in India, and it provides coverage for damages to third-party property and injuries caused to third-party individuals in the event of an accident involving your car. Third-party liability coverage does not offer any protection to the car owner's car or personal injuries. There is no limit on the number of claims that can be made under this coverage option.
Own damage coverage:
Own damage coverage is optional coverage that provides protection to the car owner's car in the event of damages due to accidents, theft, natural calamities, and other specified perils. The number of claims that can be made under own damage coverage varies from insurer to insurer and policy to policy.
In most cases, car insurance policies in India allow a policyholder to make one or two claims in a year without affecting the No Claim Bonus (NCB). NCB is a discount that car insurance policyholders can avail on their renewal premium if they do not make any claims during the policy term. If a policyholder makes more than two claims in a year, it can lead to the forfeiture of NCB, which can result in a higher renewal premium.
However, some insurance companies in India offer zero-depreciation coverage, which allows policyholders to make unlimited claims without affecting the NCB. This type of coverage is more expensive compared to regular own damage coverage, but it provides comprehensive protection to the car owner's car.
Personal accident coverage:
Personal accident coverage provides financial protection to the policyholder and their family members in the event of death or permanent total disability caused due to an accident involving the policyholder's car. The number of claims that can be made under personal accident coverage varies from insurer to insurer and policy to policy.
In most cases, personal accident coverage offers a lump sum payment in the event of death or permanent total disability caused due to an accident. Policyholders can make a single claim under this coverage option, and there is no limit on the number of claims that can be made.
Conclusion:
The number of claims that can be made under a car insurance policy in India varies based on several factors, including the type of coverage, the insurer, and the policy terms and conditions. Car insurance policyholders in India can make unlimited claims under third-party liability coverage, one or two claims under own damage coverage, and a single claim under personal accident coverage.
Car insurance policyholders in India should always read the policy terms and conditions carefully and understand the number of claims that can be made under each coverage option before purchasing a car insurance policy. Policyholders should also compare the coverage options and premium rates of different insurance companies before making a decision.