Car Insurance Singapore-An Intelligent Investment
In the contemporary world, cars have become as important an asset as clothes, shelter, and food. It isn’t just about maintaining status in front of others, but also satisfying our own needs whenever necessary. Now, God forbade, in case of an accident, no one would pay the whole money out of their own pockets. Here comes into play,car insurance singapore.
What is Car Insurance?
Car insurance is a settlement between a person and a company, that agrees to pay for financial losses or other damages to the car, provided the owner of the car pays some premiums upfront. This is important because one never knows when he/she might face an unprecedented situation. So, it is better to save the car by paying a mere sum of money in exchange for the surety of the protection of the car. It has become necessary to buy insurance at the time of buying the car. So, different offer the insurance policies at the time of buying the car itself, preventing too much paperwork later on.
How does it work?
People have to pay premiums in exchange for which a particular company agrees to pay for the losses incurred by the car. The instances for which the company will pay how much at the time of a loss are outlined in the policy taken by the owner. There are individual policies provided to let the customer tailor out the coverages according to his/her suitability. The term of the car insurance is generally six or twelve months and renewable. In most cases, the coverages offered are: –
- Vehicle damages, be it or someone else’s (the other party involved in an accident).
- Damages to the body or property.
- Any medical bills or unfortunate expenses like funeral expenses that are associated with an accident the car.
The Third-Party car insurance covers have been made necessary under the Motor Vehicles Act, 1988. These policies cannot be claimed for personal damages. These insurance policies are offered at low premiums. The claims can be made under “no-fault liability”. The Tariff Advisory Committee decides the rates, according to which the premiums to be paid by car owners, are calculated. Third-party insurance can be claimed in cases of bodily damage, accidental death, or property death.
Thus, car insurance policies are needed to ensure the protection of the car in case of emergencies such as accidents or deaths. Whether it is a first-party or third-party insurance, a car owner should make sure that the car is safe. Moreover, one needs to be aware of all the terms and conditions of the policies, so that, at the time of claiming the charges, there are no additional charges added by the insurance company.