An insurance is a mechanism to protect a person, his family or asset against a financial loss. An arrangement is made between the insurance company and customer where the insurance company provides a guarantee of compensation for a specified loss, damage, illness or death in return of a payment that is referred to as a premium. There are various types of insurance which provide protection to various assets including your vehicle, home, travel, and life to name a few.
Car insurance is an insurance policy which provides protection against damages to the vehicle, the driver, passenger and third party with whom the accident has taken place. Comprehensive and 3rd party are the 2 major type of car insurance coverage available in Pakistan. The amount of claim disbursement depends on the type of policy the customer has subscribed to, the terms of the policy, the amount inured for and the age of the vehicle.
There are 2 major type of car insurance available in Pakistan. These can be categorized as Conventional and Takaful. Both these categories provide 2 type of coverage (Comprehensive and 3rd Party).
Comprehensive coverage provides protection to the driver, the passenger, the insurers vehicle and 3rd party vehicle with whom the accident has happened.
3rd Party coverage provides protection of damages to 3rd Party (vehicle/property and occupant) with whom the accident has happened.
Car Insurance are available from insurance companies and insurance brokers. The requirements tend to vary across institutions. In general, these are the eligibility requirements for getting an insurance:
- At least 21 years of age, but not over 60
- The vehicle to be in the name of the insurer or lending institution (Banks, leasing companies)
- The driver should have a valid driver license
These are the documents insurance company may ask for:
- Copy of Driver License and vehicle registration documents
- Copy of CNIC
- If you are salaried your last salary slip
- If you are self-employed, a copy of your NTN, Tax Return, Form 29 might be required
Car insurance should be subscribed to protect you and your assets against any mishap occurring due to an accident. An insurance is helpful to protect your asset as it protects you against large financial loss arising from damages caused by an accident. Properly managing your insurance involves knowing the terms of your insurance so you can plan your payments accordingly and know what is covered under your insurance plan. Some things you need to watch out for are the annual premium, maximum claim amount, terms of coverage, coverage limits, exclusions and depreciation factors.
When choosing your car insurance, look for coverage type, lowest premium rate with highest coverage amounts. With Karlocompare.com.pk's car insurance comparison tool, you will be able to find car insurance offers that fits your needs as well as your budget in a matter of minutes. You can make the application sitting in the comfort of your home or office. Smart Bano, Compare Karo!
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