Find the perfect motor insurance policy in India: A Complete Guide

best motor insurance policy

A motor insurance policy is legally mandatory. You know it and so do your clients. But do your clients buy a motor insurance policy only for the sake of fulfilling the legal mandate? Don’t they desire to have the best policy in the market for their vehicles?


They do and selecting the best policy is often a difficult task for your customers. They do not understand the technical specifications which they should look into to buy the best motor insurance plan and so they turn to your help. Your guidance can help your customers find out the best policy suitable for their needs. So, here’s how you can help your clients choose the best plan–


  • Select the type of policy needed


Motor insurance policies come in two types – comprehensive plans and third party policies. Though the legal mandate requires only a third party cover, comprehensive plans are the best as they promise coverage for your client’s vehicle also. So, advise your clients to choose a comprehensive policy for an all-round coverage. However, if some of your clients don’t use their vehicles regularly or if the vehicle is very old and would be replaced in the near future, a third party policy would be sufficient. So, understand the needs of your clients and then suggest the most suitable type of policy.


  • Pay attention to the Insured Declared Value (IDV)


IDV of the motor insurance policy represents the market value of the vehicle after depreciation. It also represents the maximum coverage liability undertaken by the insurance company. In case of total loss or theft, IDV is paid as claim. Since IDV is the coverage level, it directly affects the premium. Premiums increase as IDV increases. When buying a motor insurance policy, you should help your customers take the IDV in consideration. The IDV of the policy should be proportionate to the value of the vehicle. If the IDV is low, the claim would be low. So, help your customers choose the ideal IDV for the most optimal coverage.


  • Find out the claim ratio of the insurance company


The claim ratio of the insurer is an important parameter as it helps you and your clients understand the claim settlement history of the company. A company with a high claim settlement ratio would be a better choice as it would increase the probability of your clients’ claims being settled.


  • Find out the available add-ons


Add-ons help make the policy more comprehensive by providing additional coverage benefits. There are a range of add-ons offered by insurers. You should help your customers understand the benefits of the different add-ons available and choose the required ones with their motor insurance policies. A policy with an enhanced coverage with the help of add-ons would help your customers with every possible contingency and would be the best policy.


  • Do a cost-benefit analysis of the plan


Premiums are an important consideration in the determination of the motor insurance policy being the best. However, premiums should never be the sole determinant. The coverage benefits offered by the policy should also be taken into consideration. Help your customers understand the cost-benefit analysis of the motor insurance policy. The policy would be called best if it provides the most inclusive coverage benefits at the lowest premium rates.


All the above points would help you pick the best motor insurance policy for your clients. Always remember to bear the requirements of your clients in mind when choosing the best policy. What is best for one client might not be the best for another. Moreover, comparison is essential. The general insurance market offers more than two dozen car insurance plans. You should compare the different plans on the above-mentioned parameters and find the best one. When you help your clients buy the best motor insurance plan, their trust in you would grow and you can increase your sales. Wouldn’t it be what you want?


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