How To Reduce Your Car Insurance using Motor Floater Policy?

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You might be already using floater health insurance for your family. You must have opted for that because buying floater health insurance for the whole family is cheaper than buying a separate health insurance policy for each family member. Can you do the same for your car and bike? Is it possible to buy a floater insurance policy for your car and bike together and save on insurance premiums? Yes. You can do this with the motor floater policy which is introduced now in India. In this video, I will explain how to reduce your car insurance costs every year using the motor floater policy. Welcome to Save and Invest Smartly! The floater motor insurance plan is a part of the sandbox initiative, where insurers can experiment and test innovative financial products. The sandbox approach gives an opportunity to experiment and learn about new technology and product before it’s finally adopted and offered to a larger set of people. The insurance companies that have rolled out motor floater policy are ICICI Lombard General Insurance and Reliance General Insurance What is a motor floater policy? It is a single insurance policy that covers all the vehicles owned by a person, together. All private vehicles, cars, or two-wheelers registered under a single owner can be covered under this policy. A maximum of up to 5 vehicles can be covered under the same policy.

How is the Sum Insured calculated?Every vehicle has an IDV – Insured Declared Value, fixed by the insurer based on the brand, model, and age of the vehicle. It may be approximately equivalent to the market value of the vehicle.For example, let us consider you own a car, a bike and a scooter all registered under your name. If the IDV value for each of these, arrived based on market value are let’s say, Car – 500000 Bike – 35000, Scooter – 15000 In case of motor floater policy, IDV of each vehicle is calculated separately and the one with highest IDV is the primary vehicle and other vehicles are considered secondary vehicles. In our case, the car becomes the Primary Vehicle and the Bike and Scooter become the Secondary Vehicles The Sum Insured is the IDV of the primary vehicle. Therefore the Sum Insured in our case is 500000 The Sub limit of each insured vehicle depends on individual IDV For example if the bike is lost and you apply for a claim under the floater policy, then the maximum claim is limited to 35000as per its IDV. With every claim, the sum insured of the policy also reduces. For example, if you have claimed 35000 for your bike when it is lost, the updated sum insured will be (500000-35000)=465000. The Sum Insured will be reset to the maximum value automatically during next year’s policy renewal. But in case, you want to reset the sum insuredmid year, then you may do it by paying an additional amount. What are the Coverage Options available?You may choose any of the 2 coverage options that are available

Option 1: Stand Alone Own Damage Cover Own Damage Insurance is a customized motor insurance policy designed to protect you and your insured vehicle from your own damages. That is, this policy covers against any loss or damage to your vehicle or its accessories due to: Fire, explosion, self-ignition, accidental damage or during Transit, that is when the vehicle is shifted from one place to anotherNatural disasters like earthquake, flood, cyclone, etc. or Burglary, theft, riot, etc.,

Option 2: Own Damage with Third PartyThis option covers everything in Option 1 plus the third party coverage. The third-party policy covers the insured against any legal liability arising out towards third parties due to accidental injury or death of a person and any damage caused to third party property. Let’s see the advantages of a motor floater policy: You can buy one single floater motor insurance plan that covers all vehicles that you own. Some of you may have 2 cars or some of you may have a car and a bike, or some people may have 2 or 3 bikes in their family. All these could be covered using a single floater motor insurance policy. This will save a lot of time as the insurance buying or renewal process would be only once a year for all vehicles together. You don’t have to fill up several proposal forms and submit proofs for each vehicle separately. Single documentation is sufficient for all the vehicles together. There is no hassle of remembering multiple renewal dates. Just remember one date for renewing the policy in a year for all vehicles together. If you have to update some details in your policies like a change of address, etc., you may do it in a single go for all vehicles together.

The premium paid for a floater policy covering all vehicles together is lesser than the total premium paid if separate policies are bought for each vehicle. You may save up to 20% on your premium if you go for the motor later policy. You can add or delete vehicles later easily to the same policy, whenever you buy a new vehicle or sell one of the existing vehicles. All other regular motor insurance benefits like no claim bonus, cancellation, etc are also available on the motor floater policy. How to apply for a motor floater policy? If you want to get the insurance from ICICILombard General Insurance, visit www.icicilombard.com. You will see various menu options. Click on Products and then select the option “Single Owner Multiple Vehicle”. You will get a form to fill up your name, mobile number, and email id. Fill up the details and tick the check box to agree to the terms and conditions. Click on Proceed. This will take you to the next page to fill up the number of vehicles. From the first drop-down, select the number of cars you own and from the next drop-down, select the number of two-wheelers that you own. Click on ‘Submit’.The insurance agent will contact you to get further details from you and proceed with withthe documentation. To apply the motor floater policy from RelianceGeneral Insurance, visit www.reliancegeneral.co.in. You will see various menu options. Click on the menu ‘Car’ and then select the option ‘Motor Floater Insurance’. You will get a form to fill up your name and contact details. Fill up the form, tick the check box and click on ‘Submit’.The insurance agent will contact you to get further details from you and proceed with with the documentation. The floater policy will definitely save time and money for you in the long run. Give it a try when you apply or renew your car insurance or bike insurance next time. Let me know your thoughts on this new policy type in the comments section. Also, write down if you have more queries on this. Hope this video was helpful to you! Subscribe and hit the bell icon to watch more such videos. Give a thumbs up if you like the video. Thank you!

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