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FAQ On Auto
Insurance |
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What
is Bonus/ Malus system ?
What are the minimum/ maximum percentages
of the Bonus/Malus?
On sale and transfer of vehicle, what
happens to the Bonus/Malus?
What is voluntary excess?
How is voluntary excess different from
compulsory excess?
What are the categories of vehicles that
are covered by a Motor Insurance Policy?
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What is
Bonus/ Malus system?
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In case of any accident occurring in a year
for which a claim is lodged on insurance company, in the very next year, the
insurance company loads the premium by way of charging a malus- a percentage of
extra premium. Whereas when there is no claim lodged during the year the
insurance company grants a discount in the premium by way of bonus.
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What are the
minimum/ maximum percentages of the Bonus/Malus |
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The minimum Bonus is 20
percent, maximum is 65 percent whereas minimum Malus is 105 percent and maximum
is 50 percent.
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On sale
and transfer of vehicle, what happens to the Bonus/Malus? |
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The Bonus/Malus goes with the original owner
since he can claim bonus on his next purchased vehicle. However the purchaser
enjoys the bonus under seller's policy till the renewal date. On date of
renewal, the bonus/malus has to start afresh.
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What is
voluntary excess?
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Voluntary excess is client's option to opt
for bearing a certain amount of loss from every claim. For this option,
insurance company allows a discount in premium.
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How is
voluntary excess different from compulsory excess? |
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In case of voluntary excess, it is the
client's option for which he gets discount in premium whereas compulsory excess
is imposed by the insurance company in addition to Malus to take care of a bad
claim experience for a particular car. For compulsory excess, no discount in
the premium is allowed.
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What are
the categories of vehicles that are covered by a Motor Insurance Policy?
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For the purpose of insurance, motor vehicles
are divided into three classes:
Private cars: This category comprises of cars, including
station wagons, used for social, domestic, business or professional purposes
(excluding those used for the carriage of goods other than samples)
Motor Cycles: This includes motorcycles with or without
sidecars, pedal cycles, mechanically assisted pedal cycles and motor scooters
with or without sidecars
Commercial Vehicles: All vehicles excluding private cars,
motor cycles and vehicles running on rails come under this category
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