According to the Pakistan General Insurance Sector Report 2013, despite the fact that the Motor Vehicles Act makes it mandatory for all vehicles to have an insurance policy, only 23% in Pakistan are insured. On the positive side, an increasing number of people are having their vehicles insured. Here is what you need to know about vehicles insurance.
Choosing an insurance policy.
The three most important factors to consider are:
*Duration of coverage (usually a year).
*Extent of coverage; the two most commonly used types of insurance are comprehensive (protects againts damages as well as theft and vandalism) and third-party insurance (covers damages to other vehicles in case of an accidents).
*The premium (annual fees) usually ranges between three to 4.5% of the cost of the vehicles. The premium varies according to the ‘deductible’ – the amount that you will have to pay in case of damages to your vehicle after an accident. For example, if your vehicle If your deductible is Rs 10,000, and the total damage amount to Rs 30,000, then you will have to pay Rs 10,000 and the insurance company will pay the rest. The higher the deductible, the lower the premium.
Registering claims.
If you are involved in accidents, or if your vehicles is stolen, call the police, register an FIR and contact your insurance company to register your claim.
*If your vehicles has been damaged, the company will appoint the surveyor to inspect it, who will then inform the insurance company regarding the cost of repair. In some cases, the owner of vehicles has to pay a percentage of this amount.
*In case of theft, the insurance company will appoint the surveyor to judge the legitimacy of the claim (the surveyor will also liaise with the police). After the inquiry is over, the insurance company will process the claim and release payment.
By Syed Wajeeh-ul-hassan Naqvi
Aoa
I âm b.tech hones in civil. And 5year exprence in civilwork 03335071506