The Plain Ground Rules Concerning Car Insurance
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The importance of car insurance can never be more important than today as the number of cars and car owners increase on a daily basis. The history of car insurance can be traced back to the UK in the nineteen hundreds.
Car Insurance insures damage or loss of a vehicle and its accessories, injury, property damage, liability, or death of the assured. It also insures the motor vehicle against risk or liability, or death or injury of any third party as a result of the negligence of the driver. The insurance of cars against damage is not made mandatory, but the insurance of third party liability arising out of the use of cars in public places has been made mandatory.
Third party insurance is the one where in the damage to any person due to use of car is covered by the insurance company. Full insurance is one where the driver, the passengers, and also the car itself is covered. The term damage might mean any temporary or permanent defacement or disability to the driver, who is duly licensed to drive, the occupants of the car and the car itself. The full insurance is not mandatory while third party insurance is.
Various risks are covered under the car insurance policy and these vary from one organization to other. A few car insurance covers include both injury and death to any person including the occupants of the car, provided that these occupants did not pay to drive in the vehicle. Damage to the car is covered and the same is restricted to the terms set by the insurance organization.
There are a certain conditions by which claims on car insurance is processed. A notice of loss of the car is to be given to the insurer immediately after the accident. This is to be done by the person who has taken the insurance policy. It is the responsibility of the insured to assist assist the insurer with the processing of the claim by providing all the required documents. Every relevant communication or documentation received should be provided to the insurer. Legal inquiries, if any, are to be informed to the insurer.
Reinstating, replacing, or repairing the car are the few options that the insurer has. He can even compensate by means of money. However, the above options are dependent on the indemnity condition as this ensures that the vehicle owner does not make any profit out of the loss. Simultaneously, the insurers liability should not go beyond the insureds estimate of the car value.
Car insurance thus has numerous benefits and hence it is mandatory for every car owner to have one.
Article Source: Articlelogy.com
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