Page 76 - ICE BUSINESS TIMES February 2020

Insurance

· Add-on/Rider: Additional coverage · Riot & strike including malicious raised against the policy. If you buy
options available with a and terrorist activities car insurance online, it will be easier
Comprehensive Car Insurance Policy. · Tremor (fire and shock damage) to track renewals as well.
· Claim Settlement Ratio (CSR): The · Flood, typhoon, inundation,
ratio of number of claims settled to cyclone, hailstorm, frost hurricane, Tip #5:
the number of claims received in storm, tempest
one year by an insurance company. · Accidental outdoor means Some Additional Tips
· Claim: Requesting an insurance · Whilst in transit by domestic Important things you should know
company to pay for the insured waterway, lift, elevator or air road, before buying car insurance policies:
damage or compensation with rail · The conditions in which the
respect to the purchased insurance Plus, events like theft, fire, insurance company is giving
policy. self-ignition, natural and man-made insurance policy
· Depreciation: Reduction in the calamities also form a part of the · Be sure about the insurance policy
monetary value of the car with coverage. Additionally, you can covers treatment cost in case of
5 TIPS TO KNOW WHILE time. customize a policy with the help of · Details of asset security
accidental injury
Add-on covers when you buy car
insurance.
BUYING MOTOR INSURANCE Tip #2: What the Policies Don’t · In which conditions the insurance
company covers the losses
Understand the
excluding road accidents
FOR FIRST TIME Coverage of Different Cover (Policy excludes) Conclusion
Types of Policies
Not all the losses or damages are
covered by the insurance policies. The
By Ms. Farzanah Chowdhury Coverage of Third Party Insurance following damages or losses are It is important for the car owner,
Third-Party Car Insurance is driver and passengers to be aware
mandatory as per the Motor Insurance excluded from insurance policy. about motor vehicle policies to avoid
Imagine for just a moment that you didn't have your car because it Tip #1: Amendment Act 1991 (1938). · Substantial loss any kind of loss or damage of asset
was at the mechanic’s workshop due to a horrid accident. In that Third-Party Car insurance in · Decline, wear and tear and life caused by vehicle and natural
case, either you would have to depend on friends and public Get Familiar with Bangladesh is a very common · Mechanical and electrical halt, calamities. Ensure your car’s safety
transport to get to work or your desired destination, or you might Jargons phenomenon for the car owners. Third disaster or fracture and security after buying it. Insurance
have had to incur costs that you may have not planned for. That's party is not engaged in the agreement · When automobile is used outside does not only protect your car, but
why motor insurance is necessary for protecting not only your Understanding commonly-used terms concerning the car owner and the the geographical area also your and passenger’s life and
investment that’s already made, but also your wallet. The elated used on the car insurance policy will insurance company. Insurance · Driven by an individual other than asset. Equip yourself with the basics
feeling with the purchase of a new car will remain intact for long if help you know your coverage better. coverage confirms that the insurer the driver stated in driver s clause we shared above and buying
the car is secured with insurance. It is a widely believed myth that Therefore, before you begin searching will compensate the losses incurred · War dangers, nuclear perils and insurance will be effortless each and
car insurance is an unnecessary expensive expenditure. Even though for the right car insurance policy or by the driver towards losses the driver drunken driving every time! If you are still confused or
motor insurance is widely-known phenomenon in Bangladesh due to insurance company, go through the may bear due to a claim by a third unclear about the jargons and basics
government regulations, people still seem reluctant about opting for following list of auto insurance party. It covers only third-party Tip #3: we explained above or if you'd like to
comprehensive insurance. However, just as you negotiate with the jargons: liabilities, which include the Compare The discuss what kind of coverage best
dealer for the on-road price of your car or compare various options · First-party (comprehensive) following: suits your needs, give us a call at
while buying it, you can do the same with car insurance. You can insurance: The very first thing you · Death: Tk. 20,000 Product Offerings In 16457 and we'll help you get started.
buy a tailor-made policy as per your needs. But buying the right will come across when you buy car · Severe Injury: Tk. 10,000 The Market
policy requires basic knowledge of how car insurance works. It insurance is your role as a buyer. · Minor Injury: Tk. 5,000
becomes pretty simple if you familiarize yourself with this The owner of the car, who is buying · Property Damage: Tk. 50,000 Before you buy car insurance, be it
knowledge. insurance, is referred to as First online or offline, compare insurance
February 1 is observed as the International Car Insurance Day Party. Similarly, an insurance Coverage of First Party or policies. Choose similar type of
globally. On this occasion, I am sharing some tips that would come company which is insuring the car Comprehensive Insurance coverage offered and compare various
in handy while buying car insurance for the first time. becomes the Second Party. features offered by the company.
· Third-party (TP) insurance: Third Contrary to third party insurance,
party is any person or an Comprehensive Car Insurance Policy Tip #4:
organization who is affected by the insured car, say, in an accident. For provides a wider coverage as
example, during a collision, the owner of the other car in question becomes compared to a Third-Party Liability Track Your Renewals
the third party. policy. Along with providing a basic
· Own Damage (OD): Any damage to the insured car or injuries to the owner Third-Party Liability cover, it provides Once you have bought the right car
of an insured car is termed as Own Damage. financial protection for Own Damage insurance policy and add-ons, you
· No Claim Bonus (NCB): If the owner of the insured car or third-party does as well. The coverage of need to keep a track of the renewals,
not raise a claim in an active policy year, the owner will be entitled for a Comprehensive motor insurance since it’s mandatory by law to renew
the insurance annually. This is
THE WRITER discounted premium on the next renewal. Also, it is possible to get this include: important as timely renewals help in
is a Chartered Insurer and lends bonus transferred if you have sold an old car and bought a new one. · Explosion, self-ignition or lighting getting a discount on the car
her expertise as MD & CEO in · Full Insured Value (FIV): The current market value of car is the Insured · Robbery, house-breaking or theft
Green Delta Insurance Company Declared Value. IDV includes depreciation. insurance premium if no claim is

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