Page 26 - Insurance Times October 2019

Given that, the long-term mandate was mainly on TP
Insurance, it means from 1st Sept. 2019 onwards, a lot of
vehicles won't be having any OD (Own Damage) cover.

Disadvantage to the ignorant
An OD cover safeguards the owner against natural
calamities (Flood, Earthquake, Lightning), Fire, Theft,
Terrorism and the omnipresent road accidents. While a
knowledgeable customer would be going in for a renewal
of their standalone OD (Own Damage) cover, the ignorant,
who may be happy till last year under the assumption that
they are adequately covered at lower price for next 5 years,
may find themselves at the losing end in case of any
casualty in next 2 or 4 years. Of course, their TP cover will
protect them against any liabilities to a third party, but their
own damages will not be covered. difference well, please contact your dealer, agent or
broker and get clarification. And if you agree that there
Advantage to the long-term OD buyers is benefit in having an OD cover, please get the OD
cover immediately to protect your vehicle against own
The ones who bought 3+3 or 5+5 product, even though damage risks in future.
they would have doled out a higher premium at the time
of vehicle purchase for covering their Car or Motorbike, will
2) Lack of interest and information: In the excitement of
continue to enjoy the benefits of both OD and TP parts of buying your new vehicle, you may have not looked at
their policy, along with the mental peace of not having to
the type of cover you are being sold i.e. whether the
renew the policy.
vehicle was covered last year for OD (Own Damage
Section) for a long term or just 1 year. Again, please
Unfortunately, the awareness level is still very low when it check your policy documents or talk to your dealer, and
comes to understanding insurance and intermediaries too
get your policy corrected.
fail to make people understand the nitty grities of
insurance. This lack of awareness is evident in the fact that 3) Type of Cover: Both, two-wheelers and four-wheelers
even today the penetration of general insurance remains
have several add-ons like zero depreciation, engine
less than a percent in India.
protection etc. You can continue with such coverages
as in last year's policy, only if your OD part is also
Lastly, here are some factors to be cautious of getting renewed.
while buying an insurance policy:
1) Mis-selling: Most of the Two-wheeler policies sold 4) Term of Policy: When you finally go for renewal, after
through dealers last year were mostly 1+5, where the finding out that your last year's policy was having just
sales person might not have explained the customer 1-year OD cover make sure that your OD cover has the
about the differences between 1+5 and 5+5. Same same time period as your TP cover. If there is gap for
might have happened in case you bought a Motor Car say 2-3 months, we suggest to take the policy on pro
policy. Therefore, if you have not been explained this rata basis to save the additional cost. T

!! Hearty Congratulations !!

Thanks readers for excellent response for our Insurance Quiz published in our June 2019 issue. This month the lucky
winners of the Quiz is Dr. Ashok Kumar Jain.
Who will be the next?????
Who will be the next?????
Who will be the next?????
Who will be the next?????
Who will be the next?????
26 The Insurance Times, October 2019