Categorized | Car Insurance

insuring the driver

Much against convention, the drive towards insuring the driver is on, which would facilitate drivers, protect consumer interests and also drive premiums down based on the individual’s driving history.

The word ‘car insurance’ immediately conjures up an image of insuring the car, and not the driver. Is it you, the driver, or the car that you drive, that is covered by your car insurance policy? When it comes to vehicle insurance, concepts such as third party insurance are focussed upon and there is less awareness of core concepts such as insuring the driver with car insurance policy. Assumptions and grey areas that are often overlooked could become matters of critical importance when it comes to insurance Policy claims. Given that differences such as these could have an impact on insurance policy claims and on third party insurance, it is worth sorting things out about insuring the driver.

There are two aspects to the concept of insuring the driver: 

1.Listing all drivers who would be covered in the car insurance policy

2.Having individual drivers Insured to drive any car of their choice

1.Listing all the drivers:

The Premium for your car insurance policy depends on many factors and one of them would be the driver. It is important to list all people who would drive the car in the car insurance policy and a failure to do so could render the vehicle insurance invalid in an accident, when the car is driven by a driver who is not insured. There are references to the regular driver and the nominated driver, which could make all the difference if the situation mandates insurance policy claims.

a.Nominated Driver: Consider a situation where the husband and driver are listed in the car insurance policy as drivers of the vehicle. If the husband is noted to be the regular driver, an Accident committed by the wife would not jeopardise the car insurance, as long as the insurance is valid and it also has third party insurance. However, if the nominated driver is just the husband and the wife is not listed in the car insurance policy, insurance policy claims cannot be made. Hence, insuring the driver is critical in this respect.

b.Young Driver: In a similar vein, it is also important to include the names of young drivers or new drivers, who would be likely to drive the car, in the car insurance. You could expect the premium to increase when young drivers are listed, but the consequences of not insuring the young driver in the case of an accident would have an enormous impact in terms of third party insurance and insurance policy claims. 

2.Insuring the Driver: 

There is much difference between insuring the car and insuring the driver with car insurance. Normal car insurance would be restricted to the car involved, and it may prove detrimental in the case of people who would like to drive more than one car. Insuring the driver would also help people who own more than one car and could use any of the cars for their travel and commuting needs.

The idea behind insuring the driver is to determine premiums to be paid for car insurance based on individual driver’s driving history, which has the potential to have an impact on insurance policy claims. With protections like third party insurance in place, rash drivers and young drivers tend to have more insurance policy claims, which are factored in when considering premiums charged for vehicle insurance. There are extensive studies on to determine feasibility of the idea, while the IRDA has urged changes in this direction.