Insurance is an agreement of protection between the respective insurance company and the individual who purchases the policy. As per this agreement the insurance company is liable to safe guard the concerned person from financial loses. This is as per the coverage limit mentioned in the respective policy. Nowadays, numerous insurance companies belonged to private sector are operating in India in addition to the insurance firms in public sector. Various types of auto insurance policies are available with them as per the coverages required. They offer coverages to vehicles against loses due to accident, theft etc. Financial compensations are, for property loses, medical expenses for injuries and other liabilities to be incurred by the owner of the vehicle. The protection which comes under the provisions of vehicles act provides coverages to third parties also in the case of accidents.

Coverage From Auto Insurance

Generally, the auto insurance provides coverage to the respective vehicles for which the policies are taken. The coverage compensates the loss or damage of the vehicle during accident and also the medical expenses incurred by injured persons if any. In most cases the property damage will be due to the collision between two vehicles. In such cases there are auto insurance schemes which offer coverages to both the vehicles involved in the mishap. The third party auto insurance protects only the other vehicle and the individuals involved in the accident caused by the policy holder and his vehicle. Here, the expenses for the injuries and damages happened to the policy holder and his vehicle will have to be met by himself. In case the vehicle is stolen, the loss will be compensated as per the policy coverage. The maximum available amount will be according to the insured value.

Auto Insurance Claim Procedure in India

Auto insurance claim can be divided into three categories. They are accidents, theft and claim from third parties. When the claim request is received, the respective insurance firm appoints a surveyor to verify the losses and expenses incurred by the policy holder. The estimation of loss and damage offered by the surveyor will generally be approximate. On the basis of his report the insurance firm settles the claim of the policy holder. Read more »