Dealing with Auto Insurance Companies
The Central Motor Vehicles Act of 1988 in India had started an unprecedented trend in India by making it a legal imperative for all automobile owners to get their vehicles insured. Insurance companies thus, have become one of the most thriving business in Indian Territory which continues with relative stability in midst of striking imbalances in world economy.
The person who is looking to buy a new vehicle be it a brand new Mercedes A Series car or a second hand Hero Honda Splendor, auto insurance is of equal concern to both persons and its importance cannot be understated. The auto insurance companies have been quick to act on this uniform flow of customers which is evident in the competitive premium rates and offers which seek to woo customers in all seasons.
Auto insurance company is an umbrella term which is used to refer to companies which insure all kinds of vehicles which are mentioned in the Motor Vehicles Act under Section 2 Sub-Section 21. However, insurance policy, the premium amount and the coverage offered under insurance will differ according to the kind of vehicle insured. Car insurance is a more expensive event than a motor bike insurance. Heavy vehicles have another level of insurance services. While most auto insurance companies provide insurance coverage to all vehicles, in recent time, vehicle specific insurance companies have also cropped up across the country. One such prominent example is FutureGenerali which has gained tremendous customer base by providing car insurance alone. However, the biggest names in the market are those of general insurance companies which have sprawling presence in all sectors of insurance and not just all vehicle insurance.
The Auto Insurance Companies in India are regulated by Insurance Regulatory and Developmental Authority, which determines and declares the criteria for insurer and the company. The IRDA registers the insurance companies, lays down guidelines for their operation and determines their scope of operation. Auto Insurance Companies offer Third Party Liability Coverage which is mandatory for all vehicle under Central Motor Vehicle Act in India. This form of insurance prevents a person from being sued in case his vehicle injures or damages another person or his property. Besides Third Party Liability, collision coverage insures the damage a vehicle suffers in case it meets with an accident on road. The broadest of all insurance coverage offered by auto insurance companies is the Comprehensive Coverage which covers damage to the vehicle, injury to the owner as well as third party liability.
Based on the type of coverage opted for by the person and after scanning the details of the vehicle which is sought to be secured, the auto insurance companies provide for insurance quotes – details of the amount for which the insurance can be provided. The auto insurance quotes are the operational part of deciding an insurance for your vehicle. While it is true that IRDA regulates the insurance market, there is still scope for relative difference in the premium amounts which different companies demand and the number of facilities they offer, thus a person should carefully negotiate and research to obtain cheapest auto insurance policy.