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  • Address

    Baneshwor 10, Kathmandu, Nepal

  • 9802336856

  • info@beemamarg.com

About Private Car Insurance

What is Car Insurance ?

Car insurance is popularly known as motor insurance and falls under the category vehicle insurance. It is popular among buyers because of the financial protection it offers against the damages involving third-party property damage, personal insuries or death arising from accidents. In Nepal, generally the insurance of vehicle are introduced to buyers through the vehicle dealer at the time of purchase.

Types of Car insurance

There are two types of car insurance:

1. Full insurance: It is the insurance that provides end-to-end coverage to policy holders. In full insurance, the insurance company offers coverage toward damage caused to your car as well as third part liability. Full insurance offers extensive coverage with a lot more benefits depending upon insurer to insurer.

2. Third Party car insurance: It is the insurance that provides coverage toward any financial liability caused to the policy holder where any other person/property are harmed by the insured car. In case of accident, when the insured car is not at fault, the insurance company will take responsibility to compensate for death, disability, injury, or property damage caused to any third party.

Why you should buy car insurance ?

Based on the different geographical locations and area, road accidents are increasing day by day in our country. Car insurance is equally important to both personal and commercial vehicle. You should buy car insurance for the reasons as mentioned below:

  • Unexpected expenses:

Car accident is an unforeseen event which might cost you very high expenditure. From repairing and maintainance cost to hospital expenses, car insurance provides coverage to all such liabilities.

  • Third party damages:

Damaging someone's else property  or vehicle because of accident can land you to an awful situation. If you buy a car insurance, your insurance company will provide compensation to the third party whose property  was damaged on the collision.

What does car insurance cover?

The coverage widely differs based on the policy you hace chosen and the insurer provinding insurance. In general, car insurance provides you the following cover:

1. Damage due to an accident

2. Loss caused due to natural calamities

3. Loss from fire or self ignition

4. Loss due to theft, riots or similar activities

5. Loss due to terrorist activities

6. Accident cover to the owner/driver of the insured car

7. Coverage of the hospital expenses

8. Compensation for death or permanent disabilities

9. Coverage toward the third party liabilities

Third party insurance mainly covers:

1. Vehicle or property damage caused by your car at a public place

2. Injuries to the third party driver/owner due to an accident.

Does car insurance provides additional rider?

Yes, car insurance offers additional riders benefits. Additional rider are the additional cover the insured can buy in addition to the original insurance such that the insurance covers total loss. 

What does a car insurance policy not cover?

The following are not covered under car insurance policy:

1. Damage done before or after the policy tenure.

2. Loss or damage caused by accident where the car was drove by driver not holding valid license.

3. Loss arised while driver was under the drug or alcohol influence.

4. Loss due to carelessness and non-maintainance as any one would generally do.

5. Gradual wear and tear of car or it's parts.

6. Loss or damage acrrued because of misconduct on maunufacturer's guidelines.

Benefits of car insurance policy

Car insurance is the utility product to the car owners offering wide range of benefits. Key benefits of car insurance policy are:

1. The policy offers end to end coverage to insured by covering third party liability as well as personal accident with pre-defined amount against death or permanent disability. Likewise, policy holder can purchase cover for the co-passenger as well. The cover for  insured and co-passenger are pre-defined.

2. The policy offers coverage to the insured vehicle in case of accident, fire, theft,riots, etc providing comprehensive cover.

3. The policy offers coverage against financial liabilty caused by injury or death of a third party or damage to the property.

How to choose best car insurance?

Choosing the best car insurance company can be very tricky and require extensive searching as the features offered by insurance company are different company to company. While choosing the policy, you should be clear about your expectations and choose the best policy as per your requirements.

Few points you should consider are:

1. Be clear about the coverage offered

Please check what your insurer are covering and what they do not cover before buying either policies. Full insurance doesn't require you to pay for personal expenses, however, third party insurance doesn't bear your personal expenses.

2. Compare the policies

Policy holder should have brief information about the companies offers and compare the policies to get the best deal. You can make easy comparision by visiting WWW.BEEMAMARG.COM and get your deal sealed.

3.  Check the payout ratio

Before purchasing the policy, check the companies payout ratio and procedure. The higher the ratio, the higher will be the chances for you to be covered in case you need one.

4. Additional Riders benefit

check the additional riders provided by the company you are purchasing the policy from. The more customization available, the more assurance you will receive.

How to calculate car insurance price?

The premium is calculated through the car insurance premium calculator online. There are different parameters which contributes in calculating the premium like:

1. Insured Declared Value (IDV) of the vehicle

2. Age and type of the car

3. Engine's capacity

4. Geographical zone

What is Insured Declared Value (IDV) ?

IDV is the value on the basis of which the premium amount is calculated.

IDV= Showroom price + Accessories cost - depreciation value

The formula to calculate own damage premium is:

IDV* car premium as per insurer + [Additional benefits] - [Discount]

Difference between full Insurance and third party insurance

Full Insurance

1. Insurance provides complete assurance for the damage caused to the insured vehicle as well as third party cover.

2. The coverage is sufficient as full insurance provides comprehensive insurance as well as an option to add additional riders.

3. The options to purchase additional riders are comparatively more according to the insurers.

4. The price of full insurance is comparatively higher because of the extensive coverage full insurance offers.

Third Party Insurance

1. Insurance provides assurance against the damage caused to property as well as third person by insured vehicle.

2. The coverage isn't sufficient because the insured vehicle is still exposed to risk.

3. The only add-on available is personal accident rider.    

4. The price of third party is cheap in comparision to full insurance.