I bought a second-hand-car last month, which has an insurance running till the end of the year. The change of ownership is under process. What will happen if there is damage to the car before it gets transferred in my name? I plan to take insurance in my name once the ownership gets transferred. Till such time will the existing cover work?
Most sellers like to retain their car insurance especially if it has a no-claim bonus (NCB). However, it seems you have got the insurance along with the car. In this case you should inform the insurer of change of ownership and file a request for change of the insured person’s name in the policy. The insurer will need a copy of Form 29/30 in your favour since you have not received the amended copy of the registration certificate yet, a declaration from the last owner that there was no claim made in this policy period and the insurer will recover any NCB enjoyed by the last owner for the remaining period.
If a loss happens before the insurer has been intimated, there will be problems during the claim. Hence, it is advised that the insurer is intimated at the earliest.
My vehicle is registered in Madhya Pradesh and I took an insurance for the same in September 2010 in Bhopal. Now I have shifted to Delhi and recently met with a minor accident and my car was damaged a bit. I approached one of the local offices of the insurer for claims but they said it can be only processed through the Bhopal branch. Are they justified in saying so?
Motor insurance is valid across the country. But the process for reimbursement of claims differs from company to company. Most private insurers have a centralized claims process wherein the policyholder can call a national toll free number and avail cashless claims service at most authorized service centres and dealerships. For reimbursement claims, the documents can be submitted at any office in India.
The claims process for government-owned companies is different. The policyholder can notify a claim at any office and get a surveyor deputed but the claim is processed and settled by the office, which has issued the policy.
I have individual health insurance of Rs 5 lakh each for my wife, child and myself. I want to enhance the cover. Should I just take a family floater of another Rs 5 lakh or bump up each individual cover to Rs 10 lakh?
If your current insurer provides the facility of a higher sum insured, it is better to increase the sum insured in existing policies. If you take a new policy, you may have a different third-party administrator (TPA). In case of a large claim you may have to approach two different TPAs. Therefore, it is more convenient to have a single policy.
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