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How to Choose the Right Car Insurance Policy

Various aids like car insurance premium calculator and 24/7 assistance for Bajaj Allianz Car Insurance renewal, helps you to choose the right car insurance policy.  

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Tesla, car insurance
A sales staff chats with a customer at a Tesla store near a poster announcing orders of the Model 3 electric cars in Beijing, China, Monday, Jan. 7, 2019. VOA

Buying a new car is always an event in a family or an individual. The joy of purchasing a car should be accentuated with a matching car insurance policy. Apart from the customary “Nimbu-Mirchi-Totka” to safeguard from an evil eye that is a ritual with any new purchase in India. It lifts the spirit, but on the ground, as you drive your favourite car on the road, you are mandated to protect yourself from the vagaries of unforeseen events. The Motor Vehicles Act, 1988 has made Third-Party Insurance compulsory for all motor vehicles on the road in India.

The need for car insurance:

The practice in India is that your car dealer includes the insurance policy in the purchase package of your new car. Though he acts as the facilitator, it is in your interest to be aware of the nuances that go into car insurance to protect you from financial losses in case of an accident. The car insurance not only covers for third-party losses but also for own damage.

Car Insurance
Directly dealing with the insurer secures you a lower premium on several features including savings on overheads that is passed on to you. Flickr

Types of car insurance:

There are broadly two types of car insurance:

  1. Third Party: This insurance policy is compulsory and compensates the victim from losses incurred on collision with your car.
  2. Comprehensive: In addition to the third party, it protects you from own damage due to the collision, personal loss and other damages by both acts of man and god.

Add-on covers:

These are necessary to enhance coverage of your car insurance. Some of the add-ons are enumerated below.

  • Zero depreciation: Covers replacement of plastic and other eligible parts ignoring the depreciation with age of the car.
  • Engine cover: For the protection of the engine from damages due to extraneous factors like flooding.
  • NCB: To continue with the year to year discounts for NCB in spite of claims in the previous year.
  • Invoice Cover: The compensation is to the tune of on-road price or full IDV in case of theft or total damage.
  • Key and lock replacement: Covers for loss due to loss of the key.
  • Round the clock roadside assistance.
  • Consumables: Covers for consumable items in the car.
  • Personal effects: Loss of personal baggage in the car.
Car Insurance
Computation of IDV is important. Lower IDV will reduce the premium, but will also impact by lesser compensation. Flickr

Inclusions in car insurance:

  • Own car damage in accidents.
  • Personal cover for death or disability due to accidents.
  • Cover for loss in natural disasters.
  • Cover up to IDV for theft.
  • Cover against human-made acts like fire, vandalism etc.

Exclusions in car insurance cover:

  • Damage caused while driving under the influence of alcohol or drug.
  • Driving without a valid license.
  • Damage suffered during involvement in illegal acts.
  • Damage out of war or nuclear risks.
  • Damage due to normal wear and tear.

Car Insurance Premium Calculator:

When opting for a preferred comprehensive insurance policy, the fundamental components that determine your premium by the car insurance premium calculator are:

  • Third party cover.
  • Own damage cover: It may vary depending on the follows.
  • IDV (Ex-Showroom price plus depreciation)
  • The capacity of the engine
  • Location of the RTO where registered.
  • Personal accident owner-driver cover.
  • Add-ons: This is variable depending on the choice.
  • GST at 18% presently.
Waymo, driverless cars, car insurance
New car buyers will compulsorily have to subscribe to third party liability cover for 3 or 5 years.

Long-term Car Insurance Policy:

IRDAI has prodded insurers to issue long duration policies for vehicles from 1st September 2018, consequent to the directive of the Supreme Court. Thus new car buyers will compulsorily have to subscribe to third party liability cover for 3 or 5 years. While these increase the cost of policy due to the upfront payment, in the long run, it works out to be economical. However, on the flip side, you lose out on annual discounts based on NCB.

Claim settlement ratio:

While buying a car insurance policy, you need to factor in the claim settlement ratio of the general insurance companies. Of the major insurers, Bajaj Allianz Car Insurance Renewal makes sense as they have consistently been in the top bracket with good claim settlement ratio.

Ways to reduce car insurance premium:

Even while you chose your policy meeting your needs, some factors may still impact the amount of premium. The various ways to lessen the premium are:

Car, insurance
Buying online insurance in UAE entitle the insurance buyer to avail exclusive offers and discounts. Pixabay
  • IDV: Computation of IDV is important. Lower IDV will reduce the premium, but will also impact by lesser compensation.
  • NCB: This factor can benefit you with up to 50% discount.
  • Security devices: Installation of ARAI approved devices like anti-theft can fetch you up to 2.5% discount.
  • AAI: AAI membership fetches you a discount on Own Damage component of premium.

Online purchase of Car Insurance:

Among the many options, the best option is to buy or renew your premium online. Let us see how it benefits:

Also Read: Insurance in 10 Years Time: What Will the Industry Look Like

  • Convenience: User-friendly portals make purchase easy from the comfort of your home at any time of the day.
  • Comparison: Multiple plans and quotes can be obtained to land the best deal.
  • Discounts: Directly dealing with the insurer secures you a lower premium on several features including savings on overheads that is passed on to you.
  • Assistance: Online assistance is just a click away.

Bottom Line:

Now that you are aware of all the nitty-gritty of car insurance, you are in a position to arrive at an informed decision. Various aids like car insurance premium calculator and 24/7 assistance for Bajaj Allianz Car Insurance renewal, helps you to choose the right car insurance policy.  

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“Medicare for All” System May Prove Potentially Disruptive For Americans, Claim Budget Experts

Within the health care industry, groups including hospitals, insurers, drugmakers and doctors have formed a coalition to battle a government-run system. Major employers are likely allies.

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Medicare for All
A sign is shown during a news conference to reintroduce "Medicare for All" legislation, on Capitol Hill in Washington, April 10, 2019. VOA

Congressional budget experts said Wednesday that moving to a government-run health care system like “Medicare for All” could be complicated and potentially disruptive for Americans.

The report from the nonpartisan Congressional Budget Office was a high-level look at the pros and cons of changing the current mix of public and private health care financing to a system paid for entirely by the government. It did not include cost estimates of Sen. Bernie Sanders’ Medicare for All legislation or its House counterpart, but raised dozens of issues lawmakers would confront.

“The transition toward a single-payer system could be complicated, challenging and potentially disruptive,” the report said. “Policymakers would need to consider how quickly people with private insurance would switch their coverage to a new public plan, what would happen to workers in the health insurance industry if private insurance was banned or its role was limited, and how quickly provider payment rates under the single-payer system would be phased in from current levels.”

One unintended consequence could be increased wait times and reduced access to care if there are not enough medical providers to meet an expected increased demand for services as some 29 million currently uninsured people get coverage and as deductibles and copayments are reduced or eliminated for everyone else.

“An expansion of insurance coverage under a single-payer system would increase the demand for care and put pressure on the available supply of care,” the report said.

Sanders, I-Vt., pushed back, telling reporters that what’s really disruptive is that millions of Americans remain uninsured while others can’t afford high co-pays and drug prices. “That is disruptive,” said Sanders. “What is not disruptive is expanding Medicare, which is a very popular and cost-effective program to guarantee health care for every man, woman and child.”

The Democratic presidential candidate’s single-payer proposal is coloring the nomination fight and is likely to be a significant theme in the 2020 elections. President Donald Trump derides it as “socialism.”

Employers now cover more than 160 million people, roughly half the U.S. population. Medicare covers seniors and disabled people. Medicaid covers low-income people and many nursing home residents. Other government programs serve children or military veterans.

Health
The CBO report was prepared for the House Budget Committee, which is expected to hold hearings but does not write health care legislation. VOA

Proponents of Medicare for All say the complexity of the U.S. system wastes billions in administrative costs and enables hospitals and drugmakers to charge much higher prices than providers get in other economically advanced countries. Critics acknowledge the U.S. has a serious cost problem, but they point out that patients don’t usually have to wait for treatment and that new drugs are generally available much more rapidly than in other countries.

While a government-run system could improve the overall health profile of the U.S., pressure on providers to curb costs could reduce the quality of care by “by causing providers to supply less care to patients covered by the public plan.”

Other potentially difficult choices flagged in the report included:

– Coverage for people living in the country without legal permission, which CBO called “a key design issue.” Sanders’ bill and its House counterpart would cover all U.S. residents, leaving it to a future administration to define that term.

– Payment for long-term care services, which CBO said could substantially increase government costs. Sanders and House counterparts would cover long-term care.

– Use of a government-set “global budget” to control cost, a strategy CBO said is “barely used” in the U.S. Programs like Medicare and Medicaid rely on other approaches.

Private payments from employers and individuals currently cover close to half of the nation’s annual $3.5 trillion health care bill. A government-run system would entail new taxes, including income taxes, payroll taxes, or consumption taxes, said CBO. Or lawmakers could borrow, adding to the overhang of national debt.

Several independent studies of Sanders’ plan have estimated it would dramatically increase government spending, from $25 trillion to $35 trillion or more over 10 years. But supporters say the expense could be much lower if expected savings are factored in.

Single-payer health care doesn’t have a path to advance in Congress for now.

Donald Trump
The Democratic presidential candidate’s single-payer proposal is coloring the nomination fight and is likely to be a significant theme in the 2020 elections. President Donald Trump derides it as “socialism.” VOA

It has zero chances in the Republican-led Senate. In the Democratic-controlled House, key committees that would put such legislation together have not scheduled hearings. They’re instead crafting bills to lower prescription drug costs and stabilize and expand coverage under the Affordable Care Act.

The CBO report was prepared for the House Budget Committee, which is expected to hold hearings but does not write health care legislation.

Also Read: U.S. Military Officials, Come Up With A New Strategy Over Unfavorable Data

Within the health care industry, groups including hospitals, insurers, drugmakers and doctors have formed a coalition to battle a government-run system. Major employers are likely allies.

Polls show that Americans are open to single-payer, but it’s far from a clamor. Support is concentrated mostly among Democrats. (VOA)