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What you acquire from shopping for one coverage for a number of autos

4 min read

If you personal a couple of car or are planning to purchase a second car in your title, then you’ll be able to go for a motor floater insurance coverage coverage. Only a number of insurers, together with ICICI Lombard and Bajaj Allianz General Insurance, promote such insurance policies. However, earlier than you zero in on such a coverage, you must fastidiously learn the phrases and situations to keep away from any confusion on the time of declare settlement.

Motor floater insurance coverage: In the normal strategy, one wants to purchase a separate insurance coverage coverage for every car owned. In a motor floater coverage, all autos owned by the insured will be grouped into one motor floater coverage. However, all vehicles should be registered within the insured’s title.

How it really works: If you have got two autos or extra, the automobile with the best Insured Declared Value (IDV) usually turns into the first car, and the IDV of the first car turns into the floater sum insured for the coverage. All different autos with IDV lesser than main autos grow to be secondary autos. “The premium of motor floater coverage is calculated as per the premium of the first car, and the insurer applies a sure floater loading for each secondary car,” said T A Ramalingam, chief technical officer, Bajaj Allianz General Insurance.

For instance, if you have an Alto K10 and a Fortuner, you can buy a single-motor floater policy to cover both your cars. The premium for your motor floater policy will be determined based on the IDV of your primary vehicle, which would be the costlier Fortuner.

What happens if the policyholder buys the insurance covers on different dates for different vehicles? The floater policy addresses this problem. Sanjay Datta, chief—underwriting, claims and reinsurance, ICICI Lombard General Insurance, says, “The insurance cover start dates may be different for the vehicles added to the motor floater policy, but the end date for the policy is aligned so that poicyholiders can enjoy the convenience of one renewal date, one premium and one policy document from the very next year .”

Third-party cowl: A motor floater coverage permits the insured to go for solely motor personal injury cowl for a number of autos beneath a single sum insured. Therefore, the insurer calculates the third-party cowl for every automobile independently, whether or not it’s a part of the floater coverage or a unique coverage.

Datta stated, “Third-party premium as offered by the regulator can be charged for every car and proven individually, vehicle-wise, within the coverage copy.”

Irrespective of the car variant, you can buy a motor floater policy for your diesel, petrol and electric vehicles. “You may require some additional add-on covers for your electric vehicles to protect the risk”, stated Ramalingam.

Adding to it, Datta stated, “Currently, in line with the Insurance Regulatory and Development Authority (Irdai) pointers, motor floater coverage is offered just for personal autos and never industrial autos.” So, the floater policy is not applicable if you have one private and one commercial car.

What if you already have an insured car and bought a new one with a floater policy? Can you cover one vehicle under two motor policies since the earlier one is already insured? “Legally, one cannot have more than one motor policy for the same vehicle in the same policy period. Motor floater would in no way promote multiple policies,” stated Datta.

Ramalingam stated, “If this occurs unintentionally, each insurance policies could pay a rateable proportion of the whole declare.” Thus, insurers can share claims from both policies, but it depends on the terms and conditions of both insurance companies. “However, you will not get any benefit whatsoever from covering one vehicle under multiple motor policies,” he Ramalingam.

PUC certificates: You have to have Pollution Under Control or PUC certificates for all of the autos to be insured beneath the motor floater coverage. “Insured has the accountability to take care of legitimate PUC certificates for all of the autos all through the tenure of the coverage,” said Datta.

Rakesh Goyal, director of Probus insurance broker, said, “You can renew your motor floater policy by filling out an online form available on your insurer’s website and attaching your PUC certificate with that.”

Benefits: You can save on premiums by buying a mixed coverage for a number of autos. Datta stated, “It provides enticing pricing whereas preserving the options of a conventional motor insurance coverage coverage.” Such insurance policies include ‘no claim bonus’ advantages as effectively.

Exclusions: The exclusions beneath normal motor insurance coverage coverage additionally apply to a motor floater coverage. Besides, another add-on exclusion might also be relevant, and this varies from insurer to insurer. Some of the usual exclusions within the motor floater coverage are normal put on and tear to the car, injury triggered to the automobile whereas driving in a state of intoxication, and so forth.

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