Insurance is a mandatory need, besides permit, enrollment, and also the PUC certification, to drive a car on Indian roadways. All vehicle owners, be it two-wheelers or four-wheelers, exclusive or commercial lorries, require to buy an insurance coverage.
As an auto owner, having an insurance policy cover not only helps in staying on the appropriate side of the law yet also makes sure an economic safeguard against lawful responsibilities and also steep fixing costs. The insurance coverage of every policy varies, and for this reason, selecting the appropriate plan is also an essential choice when acquiring one. Having claimed that, have you questioned what would certainly occur if you had 2 plans for the same car?
The Legitimacy of Having Two Automobile Insurance Policies
If you are asking yourself if it is illegal to have 2 insurance policies for your automobile, you need to understand that there is no specific lawful constraint for the same.
Now, typically, the same insurer does not provide insurance coverage for a second time for the same car. The factor is that it is against the insurance policy principle of unjustified enrichment where an insurance policy holder can increase several insurance claims to earn a profit out of them. Nonetheless, insurance is no methods to gain earnings and for this reason, the exact same insurance provider do not use second insurance policy protection for the same car.
Yet, if you want to get second auto insurance coverage, you can opt to buy it from a various insurance provider. Considering that it is fresh insurance coverage for such another insurance company, you will certainly be required to pay a different premium for it.
What are the Disadvantages of Dual Insurance?
As pointed out above, there is no lawful constraint on purchasing double insurance coverage. Nevertheless, it does not offer any kind of additional benefit in terms of coverage. Rather, it enhances the total costs. Below are several of the downsides of buying 2 automobile insurance strategies:
Numerous cars and truck insurance plans, be it a detailed strategy or 3rd party vehicle insurance coverage, causes unnecessary confusion and hold-up in the settlement of claims.
Even with two insurance policy plans, you can elevate a damage claim just from one insurer. Adhering to the concept of unjust enrichment, no revenue can be constructed of an insurance coverage agreement.
Finally, 2 insurance policy plans for the same vehicle increase the total costs you spend for it.
In Which Scenarios Will Two Insurance Policy Strategies Benefit You?
When you purchase 2 different insurance policy strategies without overlap in their protection, it is just then, that having two insurance policy prepare for the exact same automobile will certainly be beneficial.
For instance, you currently have the required third-party cover and choose to go with a standalone own-damage plan. Therefore, without overlap in their scope, both strategies can be handy to deal with different occasions like accidents, third-party problems, repairs, and so on * Requirement T&C Apply