So what do you have to take every year. So every year when you are taking insurance, what all things you have to keep in mind. See, when you are taking insurance, it doesn’t matter. You can take it at any value, at any premium. You will have to face the problem when you go to take the claim and I don’t want you to get less claim or not get it or if you don’t get money according to your claim, then the purpose and benefit of taking insurance is over. so that if you take your bike or car insurance next time, you will get to know what all things you have to take care of.

First of all, I will tell you a very simple thing. Why? Because my younger brother asked me the same question. So he asked that there is a first party insurance and there is a third party insurance. What is the difference in this? So because the way I explained it to you, I would like to explain it to you as well. Many of you are like my younger brothers and sisters. Many of you will be older in age. So now you understanding this way. I will tell you. When we talk about the first party, first, second and third. First, you understand before insurance, what is the first, second and third? First party means you, who is taking the policy, so this is the first party.

So first party, like you, if you have taken the policy, who is the second party? Insurance company, so here you come, here comes the insurance company, so the money that will be given, that will be the insurance company, which is doing the insurance and who is the third party? Which does not come in both of them, means you were driving a car, you hit a Rolls Royce while driving the car. Now you hit a Rolls Royce, let’s say you have Swift Desire car, your Swift is also a good car, but you hit a Rolls Royce.

Now the other person catches you and says that you hit my car. Now as soon as you find out that theca has been hit and there is damage, the expense of the company that is saying will come, that will come ₹ 200000.Now you will say that how will I give ₹ 200000, I have also got it on my car, but what icon your car will be covered when you have taken first party insurance, but if you have third party insurance, which is compulsory to take, it is compulsory to take third party insurance in India, so if you are driving a car, otherwise the traffic policeman who cuts your challan, they cut it for this reason.

If you have third-party insurance, they say that it does not matter if you have first party, it is necessary to have a third party, so if you hit a Rolls Royce, then according to its value, the insurance company will give money on its own. Let’s assume that you hit a car and the other person was a big businessman, its value is of crores of rupees. Now you will say that how Willi give so much money, if you have accidentally hit someone with your car or something happened, you did not know, then it comes under third party cover, so this is your third party, another person who is another person, this will come under third party, so you become first party, second party becomes insurance company,

third party becomes another person, another person’s car or any property of his, then it is covered in third party, so this was a very basic thing that you need to understand. Now when you take a policy, you have to understand that you have a car, you have a bike, if you take first party, then if your car is damaged, then money will not go from your pocket, that money will be given by the insurance company, how much will it give, we will understand that too, and you have understood third party, this is compulsory, so the premium of the first party is more, it is less on the third-party,

because the third party is like, you are saving challan, if you have to save challan, then you take insurance, so that is okay, whatever you do, that is okay, I do not care if you tell me, it is important to understand things, so whenever you take insurance, then you have to understand some things, first of all, there are somethings written in your policy that you do not understand, I will explain to you, one is IDV, IDV means insured declared value, what is insured declared value, you took a car worth 10 lakhs, I am talking about a showroom,

so you showed that car worth 10 lakhs that I have IDV worth10 lakhs, next year you think that car is a little old, it is worth 9 lakhs, now you will take insurance on 9 lakhs, so now your premium will be less, because earlier you were taking insurance of 10 lakhs, now you are taking insurance of 9 lakhs, what happens is that some people make such mistakes, so you do not make these mistakes, so I am telling you, you took a car worth 10 lakhs, next year you made a policy, you put IDV again worth 10 lakhs, so what will happen, your premium will be more, your premium will be more,

you took it according to 10 lakhs, let’s say your car is stolen, now you have to take claim from the company, when you go to take a claim, the company will tell you that we will give a claim of 9 lakhs, why? Because you have to show IDV10% less every year, so the company is assuming that 10% depreciation will come on the car every year, so if you’re driving a car for 10 years,

for example, then you understand that IDV is almost over, so after 10 years, you are doing it in a way that you are doing third party, IDV will be completely over, so according to every year you will reduced by 10% every year if your car is worth 10 lakhs, you can calculate it according to your car, first year 9 lakhs, then 8 lakhs, then 7 lakhs, in this way your IDV value will decrease.

Now the important thing is that you take a policy through an agent, you have two agents, one agent says that your policy is being made for 25000, one agent says that your policy is being made for 20000, now what do you see straight, whoever said less, gonad take it from him, as soon as he says 20000, you come and take it from him, now what happens, let’s assume the value of your car was 10 lakhs, one person told you the premium according to 10 lakhs, the other person made your policy according to 7 lakhs to reduce the amount of premium,

if your car is stolen, then the company will give you a claim according to 7 lakhs, you will say that my car is worth 10 lakhs, so they will say that when you took the policy, then you gave us the premium according to 7 lakhs, so because you have given less premium, then you will get less benefit, so you understand that when you’re giving more premium, then it is not necessary every time, but it is confirmed that if you reduce the value of your IDV, then the premium will decrease,

so it was necessary to explain the concept of IDV, now let’s understand the second concept, the second concepts NCB, no claim bonus, now this no claim bonus is very important for the motor vehicle, let’s understand it, now I am taking the example of the car, same goes for the bike also, if we talk about theca, you took the insurance, your insurance was of 1 lakh, you have an expensive car, a big car of 50 lakhs, you got your insurance of 1 lakh, when you buy a car from the showroom for the first time, then there is no NCB, it is a first timecard,

but if you do not take any claim in the whole year, you say that the glass is broken, nothing happened, no accident happened, then you did not take any claim, when you did not take any claim, so next year you get a 20% benefit, this 20% is on your basic premium, you get a 20% discount on that, so if for example, the basic premium was 80,000 on 1lakh, then you can apply20%, you will have to give a premium of less than 16,000, very good, next year you get NCB of 25%,

next year you get an NCB of 35%, next year you get NCB of 45% and finally you get a NCB of 50%, so you will get a 50% discount on the basic premium, so you will hear from many people that if I take a claim, then my NCB will go, so this NCB is that if you do not take a claim, then you will get a discount on the basic premium,

so it Isa good thing, if your car is running well, if there is no claim on it, then do not take claim, but if it is coming, then take it, if you take a claim, then you will not spend money on your pocket, so we take insurance for this. Now let’s understand this, everyone wants cheap and best in the market, see I will tell you the truth, if we want to take policy, then at today’s rate, I will tell you that you can take it directly on the internet, then you can take the policy from the market, so why is it because I do not want, you are taking a policy, so youkan take a policy from one of the best places,

so just do that, it is not necessary that you go to an agent and pay extra commissions, so that is what you can save. I will tell you one more way, that way is that, for example, I am taking the policy of the market, so youkan also become a partner with the policy market, why am I telling you this, I will tell you this, now suppose there are many cars in my house, sowed have to pay around3-4 lakhs a year, which is the premium, so the policy of cars is every year, now the policy is being done, we are paying the premium, so when you become a partner, this code is offered to you by many companies,

so for example, I am telling you through the internet, youkan become a partner with the policy market, so when you are making a policy in one way, so for example, I am telling you that you will save up to 15%,so you will see how much policy premium you are giving, and the OD value on it, you are getting around 15%,so let’s say the OD value is 4 lakhs, so you save 15%, you save60,000 rupees, so in this way, if you have your own car, there are many cars in your house, so why do we have to give extra money, this 15% you are getting according to the IIDA, people get this commission, so you can save this commission directly, for that too I tell you, you can learn, you canals become a partner.

You can earn money, so you can learn about that. So itis totally up to you. It is your choice if you want to do that. Now let’s move forward. There are some add-ons. Let’s understand what add-ons are. When you are taking a policy, then see if you need these add-ons. There is a driver cover. What is a driver cover? Suppose you were driving your car and something went wrong. If there is a mishap with the driver, the driver dies. So the insurance company gives 1 lakh to the nominee of the driver, the family member of the driver. So you will get this money. See, they also need safety. So this insurance comes in a way with your policy. So this is an add-on benefit. For this, you have to give 50.

So by giving 50, the family of the other person gets 1 lakh. Let’s also understand what the passenger cover is. What is a passenger cover? Suppose two passengers were sitting with the driver, then they will also cost₹ 50 and they will also get a cover of 1 lakh. If three people were sitting in theca, then 1 lakh will be given to all three if there is a mishap. There is one more benefit. This is called PA owner driver cover. What is this? This came later. What came later? If let’s say a person who had his own car and he was driving the car himself and something goes wrong, then his nominee gets 15 lakhs here. So these add-onsite third party insurance add-ons.

Now let’s also understand what are the first party add-ons. If you take first party insurance, then what add-ons do you get? You can take one add-on, zero depreciation. This is the most important. What does zero depreciation mean? If there is a car accident, suppose the door is broken, now if the door is broken, then itis costing 20,000. So if you do not have zero depreciation, then the company will tell you to put half of the money in your pocket, we will give you half.

So now you have to put 10,000 for 20,000, but if you have zero depreciation, then you do not need to put anything in your pocket. This is one benefit of zero depreciation. Consumables cover, now what are consumables? These are rubber parts. There are some things in the car that come inside the consumables, so you should also take cover for this. There are add-ons. The third is engine cover. There are many such cars, like I have a car, for example, let’s talk about Mercedes.

So there is a very big problem in Mercedes. I tell you that we do not take it in the rain. Idol not take it in the rain. So if you take Mercedes in the rain, then what is the issue in it? The car is very good, but if it is full of water, which is very much on Indian roads, you will see that the water is full on Indian roads. So if there is something in it under the engine, that if the water is gone, then the whole engine can be damaged and it is not covered in your insurance.

For that, you will have to see that you should have an engine cover. This is an example. In this way, if there is an issue in the engine, then you will get that cover when you have this add-on. What is the tire cover? If you’re driving a car and let’s say you were going at speed in theca and your tire burst, then you get a tire cover in it. So the expense of the tire, whatever it is, you get it with the benefit of the add-on of the tire cover. What is key replacement?

Most people think that the key replacement benefit is that if the key is lost, then the key will be found. It is not just that. If your key is lost, you will definitely file a police complaint and then the insurance company will give you the key. All the locks in your car, all the locks in all the four doors will change. If you have an expensive car, then it can cost you lakhs of rupees, then the insurance company will have to do it because if it is not domelike this, the key is lost, if it is in the hands of a thief, then the car can be stolen. So that’s why the whole lock system changes in the key replacement. You should take one more thing.

This is an add-on cover. It is called RTI, Return to Invoice. What does this mean? The invoice value of your car, how much you bought theca, if the car is stolen, you will get all the money and the basic is roadside assistance. If the car broke down on the road, then you will get roadside assistance. If the person comes there and fixes the car, if it was not there, then he will take it to the workshop. Althea expenses of this will be covered in RSA. So these are some basic things. You should have known this today. Before you buy any motor insurance, you are taking car insurance. You need to know all these things.