Car Insurance Full Coverage: Everyone gets the car insured, but do you know under what circumstances the insurance company gives you the full amount of the car.
Here you can know how much the company pays the full insurance claim for the damage caused to the vehicle. This will make it easier for you to take full advantage of insurance.
Car Insurance Total Loss: It is necessary to have an insurance policy to drive a car in India. There are many benefits of insuring car, bike etc. The biggest advantage is that if there is any damage to the vehicle, the insurance company compensates for the loss. The insurance company also pays the full price of the vehicle in case it is damaged or stolen. But when will you get this money? It is important for you to know this so that you can get full money from the company in case the vehicle breaks down.
When you buy an insurance policy for a car, there are some rules for it. When we make an insurance claim, compensation is paid as per the rules. Therefore, it is important to read and understand these rules carefully.
Suppose the car meets with an accident, it does not mean that the insurance company will pay the full amount. To get full coverage, many things are checked, only then the company pays you money in lieu of vehicle damage or theft.
When will we get the full amount of the loss?
If you want full money in case of car damage then it is necessary for the vehicle to be a total loss. Total loss simply means losing the vehicle. This is a situation when you will not be able to get your vehicle back. If the damage to the vehicle exceeds the Insured Declared Value (IDV), the insurance company will pay the full amount.
Vehicle Total Loss: Way to know total loss
Insured Declared Value (IDV) is the market value of the vehicle. This is the maximum amount that the insurance company gives you in case the car is stolen or completely damaged.
Generally, if the vehicle is so damaged that repairing it will cost equal to 75 percent of the IDV, then it will be considered as a vehicle total loss. When this happens, the insurance company pays the full amount as per IDV.
Information will have to be given to RTO
Even if the car is stolen, you get the full amount of the insurance cover . Keep in mind that if the vehicle is completely damaged then it is necessary to cancel its registration.
Under the Motor Vehicle Act, 1988, information has to be given to the concerned Regional Transport Office (RTO) within 14 days of total loss of the vehicle. While processing your application, RTO will cancel the registration of the vehicle, so that it is not misused.
