Driving on Indian roads is an adventure, thus goes the general verdict. And, such an axiom is backed by years of experience that you might have had navigating these pot-holes ridden, poorly maintained, pseudo racing tracks that are populated by over anxious drivers who are always in a terrible hurry. In such challenging circumstances, road accidents are an inevitable part of our daily existence.
But, not everything is gloomy. Auto insurance policies are here for the rescue. These policies are designed to help protect you against the liability of payments that await a vehicle that is damaged in a road accident. Also, the protection extends to the owner and the driver of the vehicle, to fend off payments that may be a factor upon hospitalization or unfortunate demise. Another important component of these auto insurance policies include the concept of ‘third party motor insurance’ wherein, the policy-holder is provided financial protection against possible liabilities that arise when the owner’s vehicle is involved in an accident that resulted in the death, injury, permanent disability of an arbitrary third party or extensive damage to third party property. Thus, auto insurance policies are your first and most important line of defense against unfortunate road accidents.
Auto Insurance- Protection Against Financial Liabilities From Accidents
In India, almost all general insurance companies (both state owned and private) offer auto insurance policies. In recent times, these vehicle insurance policies can be assessed and purchased online, thereby making the process more simpler and approachable. Third party auto loan comparison websites like BankBazaar.com help you compare auto insurance policies online and select an option that best serves your specific requirements. Alongside the main comprehensive policy, there are add-on covers. These covers tend to specific conditions that aren’t already ‘covered’ in the main policy. For example-
- Coverage against Depreciation- Against the lowering of the vehicle/spare parts’ cost due to aging.
- Personal Accident Cover- for occupants of the car during the time of the accident.
- Coverage for electrical & electronic items- Accessories that weren’t originally part of the vehicle.
- 24x7 Spot Assistance- On road assistance when the vehicle encounters a glitch or accident.
- Lost Keys Cover- Provision for a replacement key when the original is lost or misplaced.
These are just some of the popular add-on covers that are in vogue. Individual car insurance companies will usually have custom add-on covers that provide great value and utility when combined with the main vehicle insurance policy.
Why do I need Auto Insurance?
For the penny conscious customer, this might be a big question. Is auto insurance an absolute necessity, even for a very careful driver? The answer, unsurprisingly, is YES. And the reasons, are as follows-
- It’s the Law- Auto insurance is mandatory as per the Motor Vehicles Act of India.
- Premium Today, Peace Tomorrow- For a small premium today, avail coverage against accidental damage, permanent loss due to theft, injury sustained by driver and other passengers of the car, financial liabilities arising from your vehicle’s involvement in an accident that led to the injury, death or property damage incurred by a third party.
- Be Prepared- When accidents, theft or other untoward incidents happen with regards to your vehicle, you will be mentally and financially prepared, thanks to your loyal auto insurance company.
- Supplement to your Medicle Insurance- Most Auto Insurance policies offer coverage for injuries that might be sustained by you and your fellow passengers as a result of your vehicle’s accident. If not, personal injury protection can be purchased as an add-on feature.
- Peace of Mind- Thanks to all the above, tension isn’t a factor when you drive, or encounter an unfortunate road accident.
How to Select the Best Auto Insurance?
Obviously, the simplest tactic to ensure that you subscribe to a policy that works best for you, is to measure the pro’s and con’s of a number of loan options available to you. When you compare auto insurance policies online, the chances of missing out on major deal-breakers isn’t a possibility that usually happens when sorting through policies offline. Ideally, the following factors must be taken into consideration when deciding upon a auto insurance policy-
- Make of the Car
- Vehicle’s Manufacturer
- Type of cover required
- Features of the selected auto insurance
- Discounts offered, if any
- The list of exclusions
When applying for a auto loan, the primary eligibility criteria are very simple. The applicant must be an Indian citizen, he/she must be a salaried professional with a verified and regular source of income, if the applicant is self-employed then his/her business must be profitable for a specific duration of time, there must not be any red-flags in his/her credit history and his/her capacity to repay the loan must be adequately established. Further, the following documents must be submitted at the inception of the loan-
- Identity and Address proof.
- Valid driving license.
- Valid certificate of registration of the vehicle.
- Valid certificate of insurance.
- Proof of payment of tax.
- Permit / P.U.C certificate.
- Additional documents as might be required
After fulfilling the aforementioned eligibility requirements and submitting the requisite documents, your dream set of wheels will finally be yours to drive into the sunset.
Common Exclusions- What isn’t usually covered by the Auto Insurance policy?
Usually, there exist a set of conditions that upon realization, nullify the probable impact of the auto insurance policy. These conditions are collectively termed as ‘exclusions’ and the common list that is followed by almost all insurers in India include the following points-
- Depreciation- General and natural ageing that results in wear and tear.
- Damage incurred by the vehicle when- 1) Driver was driving without a valid license, 2) Driver wasn’t the owner or designated driver of the vehicle, 3) Driver was driving under the influence of alcohol or other mood/mind stimulating substances.
- Mechanical or electrical breakdown.
- Damage to vehicle by war, mutiny or nuclear attacks.
- Any damage to the tyres and tubes of the vehicle isn’t usually covered by the policy. Accessories that are added by the owner and most plastic parts are usually not covered by the policy as well.
- Accident, permanent loss of the vehicle when driven or used outside India.
We say, the ability to compare auto insurance policies is nothing short of absolute control. BankBazaar.com lines up the best auto insurance options available to you, helps you compare vehicle insurance policy online and choose the one that best suits your specific requirements and limitations. All this for FREE. As the axiom goes, have your cake and eat it too!!
News About Auto Insurance
Auto Insurance Goes Digital in India
Auto insurance, along with all other insurance policies, will now be available online, thanks to the guidelines issued by the Insurance Regulatory and Development Authority of India (IRDAI) on 29 May. In these guidelines, the IRDAI has approved the digitization of life as well as non-life insurance policies like auto insurance.
Digitization of insurance will be helpful not just to the banking and financial institutions, but also to the policyholders. The policyholders can access information about their policy online and they can also avoid the fear of losing their policy documents. On the other hand, the insurers will find it more convenient to manage the policies online and they can avoid the hassle of handling countless policy documents.
These days, many insurers allow the customers to open a new insurance policy online. The customers can easily fill a form and submit the required documents to apply for a new policy.
8th June 2015
Spotting Fake Auto Insurance Policies Made Easy
Fraud is a reality when it comes to auto insurance policies. How can you spot one, before you lose money over it? Simple, follow certain precautions that ensure that you are constantly aware of what you are getting into, the authenticity of it. This can be ensured by- a) Contacting the insurer personally to ensure that the car insurance policy sold to you by an agent/agency is binding, b) Ask for a payment receipt for any and every premium payment made, c) Check for certain markers like the IDV (Insured’s Declared Value), NCB (No Claim Bonus) and deductibles, to ensure that the policy is genuine and follows the common protocol, and d) Always sign the proposal form yourself, and never allow anyone else to sign it on your behalf. This will ensure that you are completely aware of all the features and benefits offered, and aren’t signing on for something that you aren’t aware of.
25th May 2015
GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017