Motor vehicle insurance is mandatory in India for a number of reasons. It becomes all the more important considering the high number of motor vehicle accidents that take place in India, and the mounting number of accidents is a figure to be concerned about.

The government has tried to do its part by revisiting existing laws and passing a revised bill on vehicles in 2017 making insurance coverage mandatory and non-negotiable. In fact, when it comes to the enforcement of motor vehicles rules and the push for vehicle owners to carry their motor vehicle insurance policies in vehicles are stricter now, and failing to adhere to themcan lead to significant fines.

For this reason, all vehicle owners are urged to carry their motor vehicle insurance documents with them at all times. However, the question that most people often wonder about is why motor insurance mandatory, which often goes unanswered.

Most people often select the cheapest motor vehicle insurance only to regret their decision later on when their motor vehicle has been stolen, or is involved in an accident, or while selling the vehicle. Like any other form of insurance, when you buy motor insurance online or offline,it ensures that your interests as the policyholder are protected in a variety of situations.

Some of the major reasons why one must invest in motor insurance online and also ensure timely motor insurance renewal, include:

• Reduces liability
• Pays for damages
• Buying motor insurance online is cheaper
• Pays for hospitalization
• Family receives compensation in event of death
• Pay premiums and enjoy coverage at all times

Key Feature

• Variable sum insured limits available to cover different sitatuations or needs.
• Money cover available as follows:
• In transit
• On premises during business hours
• In a safe or strong-room
• Optional cover for value of safe
• Broad definition of Money
• Money means cash, bank drafts, currency notes, treasury notes, cheques, postal orders, money orders and current postage stamps, revenue stamps, court fee stamps and the like belonging to the Insured.

Burglary insurance is an insurance policy that provides financial compensation for loss or damage caused to property and valuable items due to burglary or house breaking. Are you worried about the safety of your house and the security of the valuable items in your house when you are holidaying with your family or visiting your relatives in another town or city with your family? Or, if you are a businessman owning a business premise, do you spend sleepless nights at your home worrying that the furniture and stock of goods in your business premise might be damaged or stolen by burglars? If you are worried, then you should think of buying a burglary insurance policy and then travel any number of days to an outstation destination completely relaxed or go out on a holiday with your family with peace of mind.

Burglary insurance is an insurance policy that provides financial compensation for loss or damage caused to property and valuable items due to burglary or house breaking. The policy offers insurance cover to the following:

• Cash, jewellery and other valuables kept in a specified locked cupboard.
• Damage caused to the property and premises due to actual or attempted burglary and house breaking
• If it is a business premise, damage caused to furniture, stock of goods and other property within the business premise.
• The burglary insurance policy would pay financial compensation to the insured if any of the items specified above are stolen or damaged due to burglary or house breaking.

However, there are certain exclusions which the policy does not cover. These exclusions include theft by employees or family members of the insured, burglary due to fire and other perils, loss or damage caused by war, rioting and strikes, loss or damage caused by malicious intention, confiscation of items by customs and municipal authorities, among others.

Banker’s indemnity policy is a package policy which is designed specially to cover the risks related to banking & financial sector. A single policy will cover all branches in India of the particular bank.

Coverage Scope

The policy comprises of following 7 sections:

On Premises : Covers money and/or securities belonging to, or in the custody of bank, whilst on their own premises or on the premises of their bankers, against loss or destruction by Fire, Riot & Strike, Malicious damage, terrorist act, burglary ,theft ,robbery or hold-up.

In Transit : Covers money and/or securities if they are lost ,stolen, mislaid, misappropriated or made away with, whilst in transit in the hands of its employees whether by negligence or fraud of the employees.

Forgery or Alteration : Covers losses suffered as a result of payment of bogus, fictious, forged cheques or drafts as also forged endorsements on genuine cheques or drafts or FDRs.

Dishonesty : Covers loss of money and/or securities suffered due to dishonest or criminal act of its employees.

Hypothecated Goods : Covers losses suffered due to fraudulent or dishonest act of employees in respect of goods or commodities pledged or hypothecated to the insured bank and under its control.

Registered Postal Service : Covers loss of registered postal sending by robbery,theft or any other cause not specifically excluded, provided that each post parcel shall be insured with the post office.

Appraisers : Covers loss due to infidelity or criminal act on the part of appraisers, provided that such appraisers are on the bank’s approved list.

Janata Agents : Covers loss due to infidelity of criminal acts on the part of Janata Agents, Chhoti Bachat Yojana Agents/Pygmie Collectors.

Add on covers

The following additional perils can be covered on payment of an additional premium :

• Losses due to flood, inundation, hurricane, typhoon, storm, tempest, tornado and cyclone.
• 2. Losses due to earthquake – Fire Shock
• 3. Additional sum insured can be opted for under Section A & B.

Who can take the policy?

Any banking company as defined under various Banking Acts like Banking Regulation Act 1945, State Bank of India Act 1955 etc.

How to select the sum insured?

The proposer has to select a basic sum insured which will apply to Sections A to E of the policies. This sum insured should represent the maximum amount of loss which could be suffered by the bank due to any single incident covered under Sections A to E. The sum insured under Section F,G&H is fixed at a percentage of the basic sum insured.

In addition to the basic sum insured , an additional sum insured can be opted under Section A and/or B on payment of additional premium.

How to claim?

In case of discovery of any loss falling under the scope of the policy, the following steps should be taken:

• Inform insurance co. by phone and/or fax/letter.
• In case of burglary/robbery/theft/hold-up etc. inform police and get FIR registered.
• In case of dishonest act of employee, inform police and initiate departmental enquiry.
• Submit claim form and relevant documents to substantiate loss to the surveyor appointed by the insurance company.
• Take reasonable steps to prevent further loss due to the same reason.

Exclusions:

• War and nuclear group of perils
• Act of God perils like Earthquake, storm, or other convulsions of nature
• Negligent act of employee or wrongful act of director
• Trading losses
• Manipulation of Electronic Data Processing Systems