All industries today have a set of formulated terms that help the customer and the companies help each other in terms of what each is talking about. So when you are on the search for the best insurance policy for your car its better to know the technicality of the language used in the policy that will ensue. There are few terms that might confuse the first time customer in the literature generally provided by the auto insurance companies. Here is a list of a few to make a discerning decision while getting your insurance policy online or sitting across from a representative of the insurance company.
1. Representative: the person sitting across the table from the insurance company laying out the outlines of the various policies that one can opt for while taking their insurance.
2. Claim: the amount that one can get while being in a mishap when opting for a particular car insurance policy. ‘First party Claims’ is the claims made by the person for himself. ‘Third party claim’ is when the person asks for a claim for another person injured in a mishap caused by them.
3. Collision Coverage: this is when two cars have collided. The claim that is made when damage to property is done during the course of an accident.
4. Comprehensive Coverage: this is the extra insurance that one can add to the basic plan that one has to get under the Motor Vehicle Act. This includes damage due to natural calamity, man made calamity or medical coverage for all involved in the event of an accident.
5. Insured Declared Value (IDV): this is the premium that is calculated of the vehicle in question. An aging vehicle will have a depreciating IDV.
6. Liability coverage: the claim that a person can make for themselves or others in terms of medical expenses of loss of life.
7. No claim bonus (NCB): this is the claim that you can get when you haven’t claimed anything on the policy. This also helps in reduction of further premiums as a reward and is only viable if the car insurance policy hasn’t lapsed or is reinstated before the 90 day period.
8. Own Damage Premium (ODP): this can be claimed in the case of theft of vehicle.
9. Personal Accident Cover: this is the claim made not only in the event of death of a person, but also in the event that you have been a victim of man made calamity.
10. Policy Period: the duration of a policy.
11. Policy Holder: the person who is the owner of the car insurance policy.
12. Premium: the amount of money payable at the end of every year for the coverage given by the car insurance company.
13. Proof of loss: these are the documents which are very important when making a claim against a policy bought by the car insurance company.
These are some of the most used terms in the terms and conditions that one must come across while buying a car insurance policy, online or otherwise. Knowledge of these terms would ease the communication between the agent and the claimant in more ways than one.
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