Insuring your car
If you want to be prepared for any risks while driving your car, make sure its insured. Insurance companies in Bhutan offer two types of insurance, Comprehensive and Third Party insurance. If you have availed a loan from a financial institution, your vehicle should be fully insured with a comprehensive policy. However, once you have liquidated all your loans, you can opt for a Third party policy.
Comprehensive motor insurance covers, not just damage to your own vehicle, but also provides coverage for damage sustained to a third party property like other vehicles, walls, railings, orchards, electric poles, culverts etc. It also provides compensation for the death and injury to the driver and passengers in the vehicle. The insured will also be compensated for the towing charges incurred for towing the damaged vehicle to the repair shop.
The premium charged for this policy depends on the type, age, usage and capacity of the vehicle. The premium for comprehensive insurance is highest amongst all other types of motor insurance.
Third party policy covers damages to other property caused by your vehicle or death or bodily injury to any person caused by the use of your vehicle. The limit of compensation for third party property damage is Nu 500,000. It also covers Nu 20,000 for death, Nu 30,000 for permanent disablement and Nu 10,000 for temporary disablement.
The premium payable is minimal and falls around Nu 1,100 a year as it only covers damages caused by your vehicle to other property.
If you have applied for a comprehensive insurance, you will get a discount of 20 percent in the second year with an additional 10 percent discount every year until it totals 60 percent in the fifth year, after which your premium will remain the same.
To apply for insurance, you need to take your car to the insurance office for inspection. However for a third party policy, there is no requirement for inspection. You need to be mindful that even if your car is fully insured, you cannot claim your insurance if the reason for your accident is drink driving. This is because a person is not allowed by rule to drink while driving and an insurer cannot defy law.
Your insurance will not cover damage to your vehicle as a result of depreciation, wear and tear, mechanical or electrical breakdown, failures or breakages. It will also not cover damages to your tires and tubes unless they are damaged at the time of an accident.
To claim your insurance, you must immediately inform the police and your insurance company for spot inspection and verification. You should also submit all your vehicle documents to the cops. Remember also to renew your insurance on an annual basis.