VMPL
New Delhi [India], April 1: Over the past two decades, there has been a significant increase in car ownership in India. According to the Vahan Parivahan portal, 36.7 lakh cars were registered in FY2024-25. As more Indians purchase cars, many still hold onto common car insurance myths. Such myths can potentially expose you to financial risk.
“Despite having access to information online, many car owners still fall for common insurance myths that can leave them financially vulnerable. In the event of an unexpected accident, the cost of repairs can be substantial. It is essential to separate fact from fiction to make informed decisions and ensure real financial security on the road.” – Shubham Moondra, Chief Product Officer at Royal Sundaram
Let’s debunk some of the most widespread myths surrounding car insurance:
Myth 1: Older Cars Don’t Need Insurance
Although your car may have aged, risks like accidents, theft, and third-party liability remain. While the Insured Declared Value (IDV) depreciates over time, a car insurance policy ensures continued protection.
Myth 2: Insurance Doesn’t Cover Natural Calamities
A comprehensive car insurance policy provides coverage against floods, earthquakes, and fire. However, premiums may vary based on geographic risk factors.
Myth 3: If There is Total Car Damage, The Insurer Will Pay Full Reimbursement to its Invoice Value
In Motor Insurance, the sum insured is the Insured Declared Value (IDV) of the vehicle. As the vehicle ages, the IDV decreases annually. Unless you have a Return-to-Invoice add-on for a wider coverage, insurers will reimburse only IDV of your vehicle. Understanding these terms before purchasing a policy is crucial.
Myth 4: Insurance is Non-Transferable, and No-Claim Bonus (NCB) is Lost
Car insurance policies are transferable when selling a vehicle. However, NCB is attached to the customer and not to the vehicle. Hence, you can get NCB certificate from your insurer and transfer your NCB to your new vehicle’s insurance policy. This NCB certificate is valid upto 3 years from the date of issue.
Myth 5: If Someone Else is Driving Your Car, the Insurance Won’t Cover Accidents
If the driver holds a valid license and driven the vehicle with your permission, your insurance policy will cover damages as long as they are complying with the terms and conditions of the policy.
Myth 6: Cars in Rural Areas Don’t Require Insurance
Motor insurance is mandatory across India, irrespective of traffic density. Accidents, theft, and natural calamities can occur anywhere, making coverage essential even in less populated regions.
“Car insurance is not just a legal formality; it is your financial shield. Understanding what’s covered ensures that you stay protected in every situation.” – Shubham Moondra, Chief Product Officer at Royal Sundaram
Stay Informed, Stay Protected
With rising car ownership and unpredictable road conditions, being misinformed about insurance can prove costly. Instead of relying on assumptions, make an informed choice. A comprehensive insurance policy safeguards your vehicle, finances, and peace of mind.
Royal Sundaram’s comprehensive car insurance provides extensive coverage, ensuring financial protection in every scenario. From accidental damage to theft and vandalism, the policies safeguard your vehicle against unexpected risks.
(ADVERTORIAL DISCLAIMER: The above press release has been provided by VMPL. ANI will not be responsible in any way for the content of the same)
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