Insurance for cars is a vital subject that we believe everyone should have insurance. But, local consumers don’t opt for insurance for their cars in Pakistan due to a variety of reasons. In this article, we’ll look at car insurance and its law in Pakistan and how it is beneficial to car owners? What are the steps involved? What’s the procedure for the claim following an incident or theft? What is pakistanbazzar do to offer auto insurance? So, let’s dig in and discuss this vital issue.
Law on Car Insurance in Pakistan
Surprisingly, there’s legal legislation regarding car insurance in Pakistan that requires each owner to insure their vehicle. The law mandates that owners have Third Party Insurance. This basically means that any other vehicles that suffer injury in an accident which includes injury to the driver, caused by you, must be compensated for the loss. In the event that you fail to do so, you’ll be subject to the possibility of a fine as well as some kind of punishment. The law is only available in the form of documents, as there isn’t any implementation in the nation. Many people do not opt for car insurance or have no idea about the issue.
Types of Car Insurance in Pakistan
There are three types of car insurance in Pakistan, which are:
- Third-Party Liability Car Insurance
- Comprehensive Car Insurance
- Collision Car Insurance
Comprehensive Car Insurance
It is the ideal car insurance option for owners since it protects the car, driver and the damages caused to third parties involved in the incident. In addition, it protects your vehicle in the event of any kinds of accidents like floods, riots and theft and fire.
This kind of insurance permits you to claim compensation for accidents that occurred due to your negligence. In the event of theft, it can help you to replace your car quickly. In addition, it will tell you regardless of whether it was your error or not in the event in the event of an accident. Not to mention it will give you peace of mind.
Third-Party Liability Insurance
As you’ve heard in the past, this insurance pays the losses of a third party in the event of an accident at your negligence. But, it does not protect your vehicle from damage or the theft of your vehicle. The insurance only pays for damages to the vehicle of a third party as well as injuries to the driver or passenger of the vehicle. In other words, it will safeguard you from damages caused by your actions.
Collision Car Insurance
This insurance is for damage caused to your vehicle caused by the other vehicle involved in an accident, collision with an object such as fences or fences, as well as a single-car rollover accident. Importantly, it doesn’t pay for damages caused by weather or natural disasters in Pakistan.
Additionally, collision car insurance doesn’t pay for injuries sustained by other drivers in the event of a collision, animal accidents as well as vandalism or theft, or damages other than the auto caused by an accident.
How to Get Car Insurance in Pakistan
There are two ways:
- Car Finance
- Car Company
In the first instance, it is essential to obtain car insurance as the bank cannot transfer the car to you without insurance. Additionally, you can acquire insurance through the dealer that you purchase the car. It is possible to inform the dealer about the insurance provider after calculating the various quotes on car insurance using an insurance calculator for cars.
The third and most straightforward option is to go to Pakwheels.com to purchase insurance for your car online from your own home. All you have to do is follow the steps below:
- Then, visit the Pakwheels website and go to the section on insurance for cars section.
- Fill in your car’s information and select the insurance company you prefer.
- The Team PakWheels will call you to request confirmation, and then forward your request to the appropriate company.
- An insurance provider will be in touch to schedule a pre-inspection and provide documents.
- “Cover note” will be given in 7 days (a time-limited trial) after the pre-inspection inspection report has been received.
- This policy is expected to commence at the time “Premium” is paid, and the policy will be published in written form, too.
- Additionally, an inspector of the company will perform an initial inspection of your vehicle to examine the condition of your car thoroughly.
Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured.
Furthermore, PakWheels offers the facility to access the car insurance calculator to help you determine all expenses that could be incurred due to the insurance policy for your car. The calculator for car insurance will provide a valuable service to you to make an informed choice.
How to Claim Car Insurance in Pakistan?
It is primarily based on the type of insurance you have. If it’s complete, all of the losses you incur will be insured. In contrast, specific damage and losses are covered under the other two kinds of insurance. Therefore, there are several scenarios for the policy. They include:
- Accident (Total Loss)
- Accident (Partial Loss)
In case of theft of your car or a part of your car, you have to follow these steps:
- Report to the police or FIR about vandalism or theft.
- Contact your insurance provider for your car and inform them of the incident, and then file claims. The insurance company will notify you of a confirmation.
- If you’ve borrowed your vehicle from a bank go to the bank, and complete your claim forms.
- If the car company is involved go to its dealership and give the required documents. This exact process is followed by the insurance company.
- You need to give an official police document, CNIC, and Car Registration Card.
- If your vehicle is vandalized, which means that a part has been stolen, an employee with the business will come over to confirm the vandalism.
- The surveyor will determine the damage and the procedure begins when the business and you select a workshop or dealership to reinstall the spare component; you go to the shop and receive the new part.
- It is crucial to be aware that you are required to pay a certain amount of the total payment or depreciation and this will be applicable to certain parts and not paint for cars.
- In the event that your car is stolen, this process might require a longer period of time and the insurance company may provide you with a payment or a car replacement, based on the model of the car.
Accident (Total/Partial Loss)
As previously mentioned If you have an insurance policy that is comprehensive, then it can take care of the damages of third parties and your own. In contrast, third-party insurance will only be able to cover the loss of another party in the event of an accident that is because of your fault. Before explaining the procedure we will tell your that there exist two kinds of accidents i.e. Total loss (40 to 60 damage to your vehicle) and damage to your vehicle.
Moving forward, in the event there is an incident:
- Contact the insurance company and they will assign a surveyor and they’ll verify the amount of loss that is estimated.
- Surveyor will review and create an assessment report.
- The insured car may visit the specified workshop that is on the insurance company’s panel or visit a workshop that is his own.
- We recommend you visit the workshop at the panel of the company because they will cover all costs (except deductions).
- In the event of the facility that you choose the owner is expected to pay all fees on his own at that point, while the insurer will pay the amount within 15-30 days following the final report of the surveyor. It’s a lot much more troublesome for you.
FAQ About car Insurance
Does Insurance Cover Mechanical Losses?
No, car insurance covers accidental losses not mechanical.
Is insurance necessary for cars in Pakistan?
Is it Necessary to Have Car Insurance in Pakistan? Yes, it’s essential to possess. However, in accordance with the laws governing traffic in Pakistan, the driver has to have the third party insurance of responsibility. If not the driver will be required to pay a fine, and may be liable for punishment for breaking traffic rules.
How much does it cost to insure a car in Pakistan?
Insurance companies typically charge around 3 percentage of the total cost from those who purchase car insurance in Pakistan.
What is the new rule of vehicle insurance?
If you’re planning to purchase a vehicle following the 1st of August, you’ll have to purchase insurance by yourself and it is not an obligation to purchase it when you purchase the vehicle. Third-party insurance coverage is the same for all insurers, and the rates are similar as is the coverage.
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