On many occasions, car owners find themselves stuck when their four-wheeler insurance claim is rejected by the insurer, in part or full, citing some clause mentioned in the car insurance policy document. While the insurer specifies everything in the said document and expects policyholders to read it thoroughly before buying the policy, most of us tend to ignore it since it usually has jargon that is difficult to understand.

However, like every reputed insurer like Tata AIG mentions, it is important to ‘read the policy document carefully before buying’, ensuring that you understand the car insurance policy document can save you a lot of hassle and even claim rejection in the future. Therefore, this article will offer tips to help you understand your car insurance policy document.

What is a Car Insurance Document?

A car insurance paper is a legally binding document that acts as a contract between you and the insurer. It contains the features, terms, and conditions of the coverage.

Elements of a Car Insurance Document

Here is a breakdown of the elements of a policy document that you must pay attention to:

• Details of the policy

The first section that you need to check is the ‘Policy Details’ section. It has the following details:

• Policy number
• Name of the policyholder
• Address of the policyholder
• Period of the policy
• Car registration number
• Year of registration of the car
• Make/model of the car
• The cubic capacity of the engine
• Seating capacity of the car
• Engine number of the car

Ensure that all information in this section is correct and updated. For example, it shows that you are the owner of the insured car.

• Type of plan

Car insurance plans can be divided into two broad categories:

• Third-party liability four wheeler insurance – This includes coverage against any losses arising from damage to a third-party person or property. However, it does not cover any damage to you or your car. If you have opted for this plan, ensure that the document specifies it. Also, go through the details of the third-party liability coverage offered by the insurer in the document.
• Comprehensive four wheeler insurance – A comprehensive plan offers financial protection against losses arising from any damage to you or your car, as well as a third-party person or property. It also offers protection against losses from damages caused due to various factors like the theft of your car, natural or man-made disasters, etc. If you have opted for this plan, ensure that the document specifies it. Also, go through the details of the comprehensive coverage the insurer offers in the document.
• Insured Declared Value (IDV)

When you buy a comprehensive four wheeler insurance plan, the car insurance companies in India offer coverage to you and your car. Hence, it determines the value of your car that it will reimburse in case of a total loss. This is the Insured Declared Value or IDV. The premium calculation uses this value. Therefore, make sure that you check the IDV of your vehicle on the document.

• Inclusions, Exclusions, and Exceptions

These are important sections as they specify the list of damages that are covered under the policy (inclusions) and the ones that are not (exclusions). The exceptions section specifies parts of the car that are not covered under the insurance (if applicable).

Make sure that you understand these sections carefully, as they will help you raise claims as per the terms of the policy. Also, if there are any clauses that you don’t understand, then you can talk to the insurer to get clarity.

• Offers and special services

Sometimes insurers give special services and offer to policyholders. There is a section dedicated to these services on the policy document. Ensure that you read the section and understand these offers while you buy car insurance or during car insurance renewal.

• Grievance redressal

The insurance industry is regulated by the IRDAI. It has set a mechanism for redressing the grievances of policyholders. The policy document must contain a phone number, email address, and physical address of the office where you can file a complaint or raise a concern. It should also have the contact information of the company’s grievance redressal officer and details about how and when you can contact the Insurance Ombudsman.

Remember, while most of us compare policies when we buy car insurance and use an online car insurance calculator to compare premiums, we don’t pay attention to the policy document to ensure that the policy meets all our requirements. So make sure that you make time to go through the document and talk to your insurer if you cannot understand any jargon or terms at the time of buying online car insurance.

Summing Up

The four-wheeler insurance policy document is an important document that details the terms and conditions of the policy. The insurance company follows all the clauses mentioned in it. Hence, by ensuring that you understand the document, you know what to expect from the policy. The points mentioned above can help you look for the primary elements of a policy document. However, make sure that you go through the entire document and do not skip any section.