Tuesday, May 21, 2024

Policy Power: Decoding the Importance of Your Certificate of Insurance

In India, driving a vehicle necessitates compliance with motor insurance laws. As per the Motor Vehicles Act of 1988, having at least Third-Party Liability coverage is mandatory for all motor vehicles, whether two or four. A key document in this context is the Certificate of Insurance, a comprehensive overview issued by insurance companies containing vital information about the policyholder, the insured vehicle, and the insurance coverage.

Meaning Of Certificate Of Insurance:

The Certificate of Insurance is mandated by Rule 141 of The Motor Vehicles Act 1989. It serves as a summary of the vehicle insurance policy, provided alongside other policy documentation when a policy is purchased or renewed.

Obtaining The Certificate:

Obtaining the Certificate of Insurance involves no additional steps. Insurers automatically send the certificate and other documents when purchasing or renewing motor insurance online. Upon completing the insurance transaction and submitting the required paperwork, the policyholder receives the legally binding Certificate of Insurance. This document is imperative during police inspections, where its presentation, alongside essential documents like the driver’s license, registration certificate, and Pollution Under Control (PUC) certificate, is mandatory.

Form 51 Specifics:

The Certificate of Insurance follows the format specified in Form 51, incorporating crucial details about the policyholder, insured vehicle, and insurance policy. Some critical specifics outlined in Form 51 include:

  • Insurance And Policy Numbers: Form 51 includes the Insurance Certificate and Motor Insurance Policy numbers. These numbers are vital for claims processing and policy renewals.
  • Registration Mark/Number: The insured vehicle’s registration number is a critical component of Form 51, providing information about the vehicle’s identity.
  • Vehicle Description: A brief description of the insured vehicle’s body type, doors, and seating capacity is included in Form 51.
  • Make And Model: This section provides essential information about the insured vehicle, including its make, model, and manufacturing year.
  • Engine And Chassis Number: Form 51 mandates the inclusion of the engine and chassis numbers, crucial details for vehicle identification, especially for battery- or electric-powered vehicles.
  • Seating/Carrying Capacity: The vehicle’s maximum seating or carrying capacity is specified, such as two seats for a two-wheeler.
  • Policyholder’s Name And Address: Form 51 details the policyholder’s identity, providing their name and address.
  • Start And Expiry Of Policy Coverage: The exact date and time of policy coverage commencement and expiration are outlined, emphasising the importance of renewing coverage before it lapses.
  • Guidelines For Vehicle Operation: Form 51 details regulations regarding individuals authorised to operate the insured vehicle, requiring a valid driver’s or learner’s permit.
  • Limitations Of Use: The document outlines usage restrictions, ensuring that the insured vehicle is not used for activities like illicit racing, which may result in non-coverage of damages.

Legally, the Certificate of Insurance is indispensable. Issued upon purchasing or renewing a motor insurance policy, this document, formatted by Form 51, encapsulates critical details about the policyholder, the insured vehicle, and policy coverage. Its presentation during vehicle inspections is mandatory, emphasising the need always to keep a copy in the car. Compliance with the guidelines outlined in Form 51 is essential to avoid potential lapses in coverage. You can use a vehicle insurance calculator to estimate the cost of premiums to be paid. *

*Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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