Uncovering the top 5 car insurance myths in India
Mumbai, Maharashtra, India: Zurich Kotak General Insurance, an insurer uncovers the top 5 car insurance myths in India. Many Indian car owners hold misconceptions about car insurance’s benefits and workings. Let’s know the truth about the top 5 car insurance myths in India. Top 5 myths about car insurance in India Here’s the guide on reality about the top 5 car insurance myths in India: Myth 1: Third-party insurance is adequate Many car drivers in India believe third-party insurance is enough. However, this coverage only protects against damages to third-party and not own car damages. Reality Comprehensive insurance offers coverage for own car damages, personal accidents and third-party liabilities. Myth 2: No-Claim Bonus is transferable Few policyholders assume No-Claim Bonus can be transferred to a new car. Reality No-Claim Bonus is linked to the policyholder and not to the car. It can be transferred to a new policy, but it cannot be transferred to a new car owner. Myth 3: Insurance premiums increase with vehicle age Many policyholders believe insurance premiums increases as the vehicle ages. Reality Premiums tend to decrease [MK1] [VC2] with car depreciation. However, claim experience and other regulatory factors may influence the insurance premium rates.[MK3] [VC4] Myth 4: Small repairs are not covered under insurance Some policyholders assume that minor repairs are not covered under insurance. Reality Minor repairs are also covered under car insurance however there is a compulsory deductible and NCB benefit which can be impacted. [MK5] [VC6] Myth 5: Car insurance doesn’t cover damage from rat bites[SR(K7] [VC8] Many policyholders assume that rat bites are not covered under car insurance. Reality Comprehensive car insurance does cover damage caused by rat bites which many policyholders may not be aware. Key points to consider while buying car insurance · Understand the terms and conditions of car insurance policy. · Provide accurate information during policy purchase to insurer. · Maintain a good driving record to avoid high premium rates. · Compare insurance plans and quotes annually before renewing. · Consider add-on covers like Roadside Assistance, Depreciation, Engine Protect, and more to enhance your car insurance coverage. To conclude Indian drivers can better navigate through the challenges of car ownership by uncovering these common car insurance misconceptions. It is essential to understand the car insurance policy and its benefits for policyholders to ensure adequate financial safety. About Zurich Kotak General Insurance Company (India) Limited (Formerly known as Kotak Mahindra General Insurance Company Limited) Zurich Kotak General Insurance Company (India) Limited is a 70:30 joint venture between Zurich Insurance Group and Kotak Mahindra Bank. The Company got its new name ‘’Zurich Kotak General Insurance Company (India) Limited’’ in the month of August 2024, following Zurich Insurance Group’s 70% acquisition in Kotak Mahindra General Insurance Company Limited. It is the youngest and one of the fastest growing non-life insurance franchises in India. Kotak General Insurance was established in 2015 to service the growing non-life insurance segment in India. The company aims to cater to a wide range of customer segments & geographies offering an array of non-life insurance products like Motor, Health, Home etc. As a practice, the company seeks to provide a differentiated value proposition through customized products and services leveraging state of art technology and digital infrastructure.
Mumbai, Maharashtra, India: Zurich Kotak General Insurance, an insurer uncovers the top 5 car insurance myths in India. Many Indian car owners hold misconceptions about car insurance’s benefits and workings. Let’s know the truth about the top 5 car insurance myths in India.
Top 5 myths about car insurance in India
Here’s the guide on reality about the top 5 car insurance myths in India:
Myth 1: Third-party insurance is adequate
Many car drivers in India believe third-party insurance is enough. However, this coverage only protects against damages to third-party and not own car damages.
Reality
Comprehensive insurance offers coverage for own car damages, personal accidents and third-party liabilities.
Myth 2: No-Claim Bonus is transferable
Few policyholders assume No-Claim Bonus can be transferred to a new car.
Reality
No-Claim Bonus is linked to the policyholder and not to the car. It can be transferred to a new policy, but it cannot be transferred to a new car owner.
Myth 3: Insurance premiums increase with vehicle age
Many policyholders believe insurance premiums increases as the vehicle ages.
Reality
Premiums tend to decrease [MK1] [VC2] with car depreciation. However, claim experience and other regulatory factors may influence the insurance premium rates.[MK3] [VC4]
Myth 4: Small repairs are not covered under insurance
Some policyholders assume that minor repairs are not covered under insurance.
Reality
Minor repairs are also covered under car insurance however there is a compulsory deductible and NCB benefit which can be impacted. [MK5] [VC6]
Myth 5: Car insurance doesn’t cover damage from rat bites[SR(K7] [VC8]
Many policyholders assume that rat bites are not covered under car insurance.
Reality
Comprehensive car insurance does cover damage caused by rat bites which many policyholders may not be aware.
Key points to consider while buying car insurance
· Understand the terms and conditions of car insurance policy.
· Provide accurate information during policy purchase to insurer.
· Maintain a good driving record to avoid high premium rates.
· Compare insurance plans and quotes annually before renewing.
· Consider add-on covers like Roadside Assistance, Depreciation, Engine Protect, and more to enhance your car insurance coverage.
To conclude
Indian drivers can better navigate through the challenges of car ownership by uncovering these common car insurance misconceptions. It is essential to understand the car insurance policy and its benefits for policyholders to ensure adequate financial safety.
About Zurich Kotak General Insurance Company (India) Limited (Formerly known as Kotak Mahindra General Insurance Company Limited)
Zurich Kotak General Insurance Company (India) Limited is a 70:30 joint venture between Zurich Insurance Group and Kotak Mahindra Bank. The Company got its new name ‘’Zurich Kotak General Insurance Company (India) Limited’’ in the month of August 2024, following Zurich Insurance Group’s 70% acquisition in Kotak Mahindra General Insurance Company Limited. It is the youngest and one of the fastest growing non-life insurance franchises in India.
Kotak General Insurance was established in 2015 to service the growing non-life insurance segment in India. The company aims to cater to a wide range of customer segments & geographies offering an array of non-life insurance products like Motor, Health, Home etc. As a practice, the company seeks to provide a differentiated value proposition through customized products and services leveraging state of art technology and digital infrastructure.
