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What are Deductibles?

  • Deductibles are the portion of the claim amount that the policyholder must pay out of pocket prior to receiving assistance from the insurance company.
  • Deductible is expressed as a fixed amount or a percentage of the claim amount, depending on the policy terms
  • Deductibles are not applicable in Third-Party Liability Insurance as it covers only the damage caused to the third-party vehicle and not the policy holder's vehicle
  • Deductible is not applicable for Third-Party claims, as the liability is borne entirely by the insurance company
  • There are two types of deductibles that may be part of the Car Insurance policy:
  • Compulsory Deductibles
  • Voluntary Deductibles
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Types of Deductibles

Voluntary Deductible

  • Voluntary deductible is an option that the policy holder can choose to opt for, in addition to the compulsory deductible
  • Voluntary deductibles allow policy holders to customise their insurance policy based on their risk appetite and budget, ultimately reducing the payable premium.
  • It is important for policy holders to strike a balance between the voluntary deductible and the premium amount, as a very high deductible may not be financially viable during a claim process
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Compulsory Deductible

  • This is a fixed amount that is mandatory for policy holders to pay before their insurance company starts paying out claims. In India, the compulsory deductible amount is determined by the Insurance Regulatory and Development Authority of India (IRDAI) and varies depending on the cubic capacity of the car engine
  • The minimum compulsory deductible is Rs. 1,000 for cars with an engine capacity of up to 1,500 cc and Rs. 2,000 for cars with an engine capacity of more than 1,500 cc.
  • Policy holders should carefully consider the deductible amount while choosing a policy, as it can affect the overall cost-benefit analysis of the policy.
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Frequently Asked Questions

Is the deductible applicable to Third-Party claims under Car Insurance?

No, the deductible is not applicable to Third-Party claims, as liability is borne entirely by the insurance company

What is the benefit of choosing a voluntary deductible for Car Insurance?What is the benefit of choosing a voluntary deductible for Motor Insurance?

Choosing a voluntary deductible can help policy holders lower their premium amount, as they are opting to bear a higher portion of the risk in case of a claim

Is it recommended to opt for a high voluntary deductible in Car Insurance?

The choice of the voluntary deductible amount depends on the policy holder's financial situation and risk appetite. While a higher voluntary deductible can result in a lesser premium, it should be balanced with the policy holder's ability to pay the deductible amount in case of a claim

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Consumables Cover in Car Insurance

What is a Consumable Cover in Car Insurance?

Posted on 2025-02-24 06:08:21

In Car Insurance, a Consumables Cover is an add-on that pays for the price of necessary parts that are depleted during repairs, such as lubricants, nuts, bolts, brake fluid, and engine oil. You would have to pay for these things out of pocket unless you had this add-on because they are not covered by your regular Car Insurance Policy. When your car is in an accident and needs repairs, for instance, your insurance company will pay for the majority of the damage, but you won't get your money back for consumables like coolant, grease, or washers unless you have this kind of coverage. While it might not seem like much, these costs can mount up, particularly for high-end cars or frequent drivers. In this blog, we'll go over what is Consumables Cover in Car Insurance, the advantages, exclusions, claim procedure, and whether or not it's worth adding to your policy.

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Best Car Insurance Policy for Your Next Road Trip

Posted on 2025-02-14 05:45:58

Road trips provide excitement, independence, and amazing memories—but are also riddled with uncertainties. Unexpected failures or accidents may ruin your travel, whether on Himalayan roads or seaside trails. For this reason, it's crucial to have the appropriate insurance when travelling by car. You can concentrate on the road ahead with a well-thought-out Car Insurance plan that provides financial protection against damages, breakdowns, and third-party liabilities. To keep you ready for a hassle-free journey, we'll go over the best insurance coverage, essential add-ons, and a checklist for Car Insurance.

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Car Insurance for Hybrid Cars: A Complete Guide

Posted on 2025-02-13 12:14:02

As environmentally friendly transportation gains popularity, hybrid cars are becoming increasingly popular among Indian consumers. These vehicles are a wise investment because they balance reduced emissions and fuel economy. However, owning a hybrid vehicle also means one must be well-informed about its insurance needs. Since hybrid vehicles come with advanced technology and expensive components, securing the right Car Insurance for hybrid cars in India is essential to protect your investment and ensure hassle-free ownership. In this guide, we’ll explore everything you need to know about hybrid Car Insurance in India, including its benefits, coverage details, and how to choose the best policy for your vehicle.

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Shriram Car Insurance in Major Cities in India

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TN32TY6799

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    VITARA BREZZA ZDI

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