Need Geographical Extension in Motor Insurance? Know the Countries Covered by IMT 1

A challenging task for car owners is choosing the right coverage options and add-ons when buying a motor insurance policy. A common add-on option they often ignore is Indian Motor Tariff - Endorsement 1 (IMT 1). If you are wondering, “What is an IMT 1 add-on cover?” It is an additional coverage option protecting your insured car from damage in some Indian neighbouring countries.

If you need geographical extension in motor insurance, this add-on cover can help. Keep reading to learn why adding locations like Bangladesh, Bhutan, Nepal, Sri Lanka and Maldives in a policy can benefit car owners.

Which Countries Covered by IMT 1 Can You Add to Your Motor Insurance Policy?

Under the India Motor Tariff, you can extend the geographical limit of your motor insurance policy to Bangladesh, Bhutan, Nepal, Sri Lanka and the Maldives. You just need to pay an additional premium, and you can enjoy all the benefits mentioned below:

Nepal

It is mandatory under Japanese law to have third-party liability insurance to cover vehicle damage or injuries caused by a road accident. The two primary benefits of adding Nepal as a geographical extension in a motor insurance policy are:

1. You do not have to worry about losing insurance protection when travelling cross-border.
2. Prevent heavy out-of-pocket expenses caused by accidental damages abroad.

Bhutan

You can obtain a vehicle entry permit at the Bhutan border if you have a valid RC, driving licence, and emission certificate. Even if you own a light vehicle, adding a geographical extension in insurance will cover legal and financial liabilities. The two primary benefits of adding Bhutan to your policy are:

1. Prevent wasting your time researching and buying a local motor insurance policy.
2. You do not have to worry about rugged terrain and risky driving road conditions in Bhutan.

Bangladesh

Indian car owners travelling to Bangladesh should add a geographical area extension in insurance to comply with the country’s legal mandates. Besides, it also acts as a financial safety net. Two more benefits of adding Bangladesh to your motor insurance policy are:

1. Get theft protection when parking or storing your car in foreign jurisdictions.
2. Adding geographical extension in motor insurance is cheaper than buying numerous short-term motor policies.

Sri Lanka

An easy way to ensure you are complying with the local requirements when driving in Sri Lanka is with a motor insurance policy including geographical extension. The two primary benefits of adding Sri Lanka to your motor insurance policy are:

1. Comply with local laws to match specific legal requirements in Sri Lanka.
2. Simplify the insurance claim process as it is managed by an Indian insurer.

Maldives

If you want to avoid heavy fines, vehicle impoundment, and prosecution when driving in the Maldives, make sure your motor insurance policy has geographical extension. Malaysian traffic enforcement also makes you legally accountable for traffic violations. The primary benefits of adding the Maldives to your motor insurance policy are:

1. Offer flexibility to fleet operators to deploy assets without worrying about coverage gaps.
2. Protect your vehicle from regional weather hazards even when abroad.

Are you planning to add a geographical extension to a motor insurance policy? You can take a look at the table below to make a more informed decision.

Note: You can get in touch with the online support agent at Bajaj General Insurance to discuss your international travel needs. They will let you know whether adding a geographical extension to your motor insurance plan will be necessary.

How Does a Location Impact Your Car Insurance Premium?

Location plays an important role in determining your motor insurance policy premium. An insurer considers various factors, such as the location’s vehicle theft rate, population density, traffic conditions, and road infrastructure.

Knowing the factors in detail ensures you are not paying more for the policy than necessary.

Vehicle Theft Rate

Your insurer might consider the vehicle theft rate in the country if you plan to add it as a geographical extension in your policy. A higher rate of vehicle thefts or criminal activities means they pose a higher risk to insurance companies.

For example, if you park two identical cars in two different locations, the country with a higher vehicle theft rate will have a higher premium, as insurers consider it a high-risk area.

Population Density

A location’s traffic conditions largely depend on its population density. A more populated location will have more vehicles and more traffic. This increases the risk of accidents. So, your insurer might quote a higher price.

Road Condition

A country’s parking facilities and road infrastructure also impact the premium when adding geographical extension in a motor insurance policy. Bad road conditions mean your car will be more prone to road accidents.

For example, there is a higher chance of a road accident if you drive in a country with unpaved roads, deep potholes or missing streetlights. So, the insurer might quote a higher premium.

2 Tips To Reduce The Premium of Your Motor Insurance Policy

Though the premium depends on various factors, you can follow the tips mentioned below to lower it when adding a geographical extension in motor insurance:

Choose a Bundled Policy

To make motor insurance more affordable for car owners, reputable insurance companies, like Bajaj General Insurance, offer all-in-one car insurance policies. It saves you from the hassles of choosing fragmentary covers, like rally cover or geographical extension. An umbrella protection policy offers complete financial protection at a low premium.

Choose a Higher Deductible

A higher deductible generally means a lower premium amount. If you are wondering “What is a deductible in car insurance?”, it is the amount a car owner agrees to pay for a car repair bill before claiming the rest from the insurance company. Below is an example:

Imagine you buy a car insurance policy with 1 lakh coverage. The insurer will quote a lower premium if you choose a voluntary deductible of ₹30,000 and a higher premium if the deductible is ₹15,000. This is because they have to pay the remaining amount if you raise a claim.

Final Thoughts

A basic car insurance plan will not cover losses to your car in a neighbouring country. If you often drive outside your country’s borders, a geographical extension in motor insurance will provide both legal and financial protection. Generally, manufacturing companies engaged in cross-border business use it as an add-on with their commercial motor insurance plan.

Insurance companies also advise car owners to buy the IMT 1 add-on cover if they often use their vehicle for long-distance travel. Complete financial protection means they can drive with better peace of mind.

Frequently Asked Questions

What do you mean by extension in a motor insurance policy?

A coverage extension in a motor insurance policy means you will get better financial protection for car damage or theft. Generally, it broadens the scope or maximum payout of a policy.

Will adding geographical extension cover car breakdowns not caused by an accident?

Yes, you can get financial protection from mechanical or electrical breakdowns by adding geographical extension to your motor policy.

Will including a flood- or earthquake-prone country increase my motor insurance premium?

Yes, the insurance company might quote a higher premium if you add a geographical location with a higher risk of natural disasters. Though unpredictable, these occurrences can cause serious damage to your car.

*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.

Disclaimer: The content on this page is generic and shared for informational and explanatory purposes only. It is based on several secondary internet sources and is subject to change. Please consult an expert before making any related decisions.