Q1. Is Service Tax applicable on premium and how much is it?

Yes, Service Tax is applicable and would be as per prevailing rule of law.

Q2. What are the documents to be kept in the vehicle while plying in public places?

Follow this list for the documents that you should keep in the car while you are on wheels in public places:

• Certificate of Insurance
• Xerox copy of Registration Certificate
• Pollution Under Control(PUC) Certificate
• Photocopy of Driving License of person who is driving the vehicle

Q3. Are there any tax benefits for payment of car insurance premiums?

Yes, there are tax benefits on payment of car insurance premium but only under some particular situations .Visit Website of us to know more about the scheme.

The premium is allowed to be treated as an expense if the car is being used for business purpose. There is no maximum limit on the car insurance premium to be treated as business expense nut only if it is being used for business purpose.

If the car is not being used for business purpose and used for personal purpose then sr22 illinois car insurance premiums will not be allowed to be treated as an expense. And if it is used partially for the purpose of business and partially for personal use then the expense of car insurance premium can be treated as a business expense in proportion in which it is being used for business.

Q4.  I have lost my car insurance policy. Can I get a duplicate of it?

Yes, you can get a duplicate of your car insurance policy. If you have purchased the policy offline then please contact the insurance company, which had issued the policy, with a written request. A nominal fee is charged for issuing a duplicate policy copy. In case you purchased it online then you can easily get a soft copy of your email.

Q5. What is a cooling-off period in motor insurance?

The cooling-off period in motor insurance is a period of 15 days given to the policyholder to make a decision to take or cancel the policy. The policyholder can cancel the policy within 15 days from the date of receipt of the policy document. If you disagree to any of the terms or conditions in the policy then you can return the policy stating the reasons for objection and you will be entitled to a refund of the premium paid.

Q6. Will I get a refund for the premium if I cancel the insurance during the cooling-off period?

Yes, you will get the entire refund for the premium in case you cancel the insurance policy during the cooling-off period.

Q7. Can I cancel the policy after a cooling-off period and will I get a refund for the premium?

You can easily cancel your car insurance policy provided that you submit all the documents and complete all the formalities.

The cancellation process is pretty straightforward. You have to intimate your Car Insurance Company through email or calling up at their call center and request the cancellation of your policy. Once, the request has been processed and the necessary details have been provided, cancellation takes places in approximately a week.

You will not get a refund for your entire premium if you cancel the policy after the cooling off period. After the cooling off period, the company will charge you a certain amount depending on the number months which have passed from the policy period.(i.e. 10% charges within a month, 20% after 2 months and so on).

Q8.  What are the documents required to cancel the Car Insurance policy?

The documents required to cancel the policy by the customers are as follows

• Customer Request Letter
• Alternate policy proof (TP / Comprehensive)
• Original Policy Copy
• Sale proof of the vehicle or Sale Deed/Form 29&30 along with RTO acknowledgment. (in case of vehicle sold)
• NOC from financer if the vehicle is seized by the financier.

Q9. What is the procedure for recording any changes in the policy?

If you want to make changes in your existing car insurance policy like modifications in the vehicle, change in the address etc. then you can do so with the help of an endorsement. The endorsement is an attachment appended to the policy document itself effected to amend the terms and conditions in the original policy. Some endorsements may require you to pay an additional premium.

Q10. What is the period of the policy?

A policy period is a duration during which the policy is effective. It is generally for a year or for a period of 3 years. One should renew the policy before the due date only in order to protect your policy from being lapsed.

Q11.  Do car insurance companies do background checks?

Car insurance companies examine your driving record. They also might look at your credit report and criminal history. You’ll pay more for car insurance if you have certain types of criminal convictions. So it’s better to have a clean driving and criminal record, otherwise, you will have to pay more for your car insurance.

Q12. Does my insurance cover rodent damage to the car?

Your car insurance covers for rodent damage only when you have a comprehensive car insurance policy. Comprehensive coverage provides coverage for events that are not related to a collision, meaning damages caused by animals. So if the electrical wiring of your car has been damaged by the rodents then you need not worry as it will be covered by your insurer.

Q13. If I fit CNG or LPG kit in my vehicle, is it necessary to inform the Insurance Company?

If a CNG / LPG kit is fitted in the vehicle, the Road Transport Authority (RTA) office where the vehicle was registered should be informed so that they make a note of the change in the registration certificate (RC) of the vehicle. The insurance company should also be informed so that the kit is covered on payment of extra premium on the value of the kit under “OD” (Own Damage) section and also under “LO” (Liability Only) section.

Q14. How is IDV determined in the car insurance policy?

Insured Declared Value is the maximum Sum Assured fixed by the insurer which is provided on theft or total loss of the vehicle. Basically, IDV is the current market value of the vehicle. The Insured Declared Value (IDV) of the vehicle is to be fixed based on the manufacturer’s listed selling price of the vehicle at the commencement of insurance /renewal and adjusted for depreciation.

Q15. Can I transfer my insurance to the purchaser of my vehicle?

Yes, the insurance can be transferred to the purchaser of the vehicle, provided that the seller informs in writing of such transfer to the insurance company. A fresh proposal form needs to be filled in. There is a nominal fee charged for transfer of insurance along with pro-rata recovery of NCB from the date of transfer till policy expiry. It may be noted that transfer of ownership in comprehensive/package policies has to be recorded within 14 days from the date of transfer failing which no claim will be payable for own damage to the vehicle.

Q16 Is there any problem if I continue the insurance in the name of the previous owner even after the vehicle is transferred in RTO records in my name?

Yes. You must avoid such a thing. Registration and insurance of the vehicle should always be in the same name with the same address. Otherwise, the claim will not be payable. A fresh proposal form needs to be filled in. There is a nominal fee charged for transfer of insurance.

Q17. Is there any discount available in Car Insurance Policy if I install an Anti-theft device and locking system?

If your vehicle has an anti-theft device, which is approved by the Automobile Research Association of India (ARAI), then you will be eligible to get a discount on Own Damage (OD) premium.

Q18. What is a Certificate of Insurance under Motor Vehicle Act?

As per Rule 141 of Central Motor Vehicle Rules 1989, a certificate of Insurance is to be issued only in Form 51. It is only in Motor Vehicle Insurance, apart from the policy, that a separate certificate of insurance is required to be issued by insurers. This document should always be carried in the vehicle and the policy should be preserved separately at home/office also