The basic premium of car insurance is determined by the tariff association and companies add additional premium to the basic premium on the basis of shape, size, value, use etc of the motor car. Premium is more or less highly related to the risk factor, means higher the risk higher the premium. The rebate on the premium is given to the insured if the insured has more than one car; the car was under personal use of the owner. Car insurance policies are generally issued for 1 year.
To take the car insurance, you have to submit a proposal form, when the proposal form is accepted a cover note is issued which is the certificate of the insurance. When the policy is issued, cover note is cancelled. In this policy, your benefits are directly related with your premium. If you are ready to give extra premium, you could take extra benefits. The insured vehicle could be disposed, along with the policy. Similarly, insured can replace another car under the same policy.
Settlement of Claim
The insurer will pay the amount of liability only when the insured is not legally liable for indemnification to the third party .You have to give a notice to the insurer in case of damage occurs. Evidence & eye witness should be placed to the insurer. When the insurer become satisfied with the evidence, he will issue claim form which is returned to insured after completing it in all respect and then insurer gives the claim amount.
The liability of the insurer is limited to the liability of the insured, when third party liabilities do not arise.