Page 77 - ICE BUSINESS TIMES February 2020

· 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
time. customize a policy with the help of accidental injury
Add-on covers when you buy car · Details of asset security
Tip #2: insurance. · In which conditions the insurance

Understand the What the Policies Don’t company covers the losses
excluding road accidents
Coverage of Different Cover (Policy excludes)
Types of Policies Not all the losses or damages are Conclusion
covered by the insurance policies. The
Coverage of Third Party Insurance It is important for the car owner,
Third-Party Car Insurance is following damages or losses are driver and passengers to be aware
mandatory as per the Motor Insurance excluded from insurance policy. about motor vehicle policies to avoid
· Substantial loss
Tip #1: Amendment Act 1991 (1938). · Decline, wear and tear any kind of loss or damage of asset
Third-Party Car insurance in
and life caused by vehicle and natural
Get Familiar with Bangladesh is a very common · Mechanical and electrical halt, calamities. Ensure your car’s safety
Jargons phenomenon for the car owners. Third disaster or fracture and security after buying it. Insurance
party is not engaged in the agreement · When automobile is used outside does not only protect your car, but
Understanding commonly-used terms concerning the car owner and the the geographical area also your and passenger’s life and
used on the car insurance policy will insurance company. Insurance · Driven by an individual other than asset. Equip yourself with the basics
help you know your coverage better. coverage confirms that the insurer the driver stated in driver s clause we shared above and buying
Therefore, before you begin searching will compensate the losses incurred · War dangers, nuclear perils and insurance will be effortless each and
for the right car insurance policy or by the driver towards losses the driver drunken driving every time! If you are still confused or
insurance company, go through the may bear due to a claim by a third unclear about the jargons and basics
following list of auto insurance party. It covers only third-party Tip #3: we explained above or if you'd like to
jargons: liabilities, which include the discuss what kind of coverage best
· First-party (comprehensive) following: Compare The suits your needs, give us a call at
insurance: The very first thing you · Death: Tk. 20,000 Product Offerings In 16457 and we'll help you get started.
will come across when you buy car · Severe Injury: Tk. 10,000
insurance is your role as a buyer. · Minor Injury: Tk. 5,000 The Market
The owner of the car, who is buying · Property Damage: Tk. 50,000 Before you buy car insurance, be it
insurance, is referred to as First online or offline, compare insurance
Party. Similarly, an insurance policies. Choose similar type of
company which is insuring the car Coverage of First Party or coverage offered and compare various
becomes the Second Party. Comprehensive Insurance 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
discounted premium on the next renewal. Also, it is possible to get this include: the insurance annually. This is
bonus transferred if you have sold an old car and bought a new one. · Explosion, self-ignition or lighting important as timely renewals help in
· Full Insured Value (FIV): The current market value of car is the Insured · Robbery, house-breaking or theft getting a discount on the car
Declared Value. IDV includes depreciation. insurance premium if no claim is

71
www.ibtbd.net