Insurance is like a spare tyre. You may not require it, but not having one is not an option.
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    Smart Buying tips for your Car Insurance

    Be an Add-on Smart Cookie

    Get complete information about the add-ons available to be integrated into your car insurance policy for additional coverage.

    Renew On Time, Every Time

    Set reminders for your car insurance renewal dates so you never miss your policy's renewal date. The early bird always stands to benefit.

    Avoid False Declarations

    False declarations will come back to haunt you. Your car insurance policy will lapse immediately if any incorrect information is found at any stage of your coverage period.

    Discount for Security Features

    Some cars come with enhanced built-in security features such as anti-theft alarms, immobilizers and other systems that give potential thieves nightmares. With a low probability of theft, such cars can be insured for less premium. Note that only Automotive Research Association of India (ARAI) approved devices will fetch a 2.5% discount on your premium.

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    Your premium for a Car insurance is determined by

    Registration City

    The city where a vehicle is registered determines premiums. Cars in metropolitan cities have to pay higher premiums as the incidence of vehicle thefts and accidents is higher.

    Make & Model

    Vehicle make and model and potential risk factors associated with it is a factor. For instance, some makes and models fare better in collisions than others so injuries to occupants and damage to the car would be less severe.

    No Claim Bonus Percentage

    The insurance premium amount will always be less if you haven't made any claims before. The no-claim bonus percentage plays a major role in determining your premium amount. So think twice before scurrying to your insurer for a miniscule scratch or dent.

    Type of Cover Taken

    Additional cushions you may consider such as cover for CNG/LPG kits, key replacement costs, road-side assistance etc. will increase your premium amount.

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    Expert Tips For Cutting Your Car Insurance Costs

    You Snooze, You Lose

    Always renew your motor insurance before the due date to avoid the inconveniences such as vehicle inspection as well a potential increase in premium cost.

    Don't Sweat the Small Stuff

    Making small claims like dents and scratches will push up the premium amount when you renew it the following year and you will lose the no-claim bonus in the corresponding year.

    The Net's Your Best Bet

    Buying car insurance online will save you a pretty penny in processing and distribution costs and could give you more discounts than a direct purchase.

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    • This Week's Pick

      7 Car Insurance Tips to Light up Your Diwali

      As part of the auspicious occasion of Diwali, banks and car manufacturers have lined up an exciting array of offers on cars, car loans, and motor insurance that you simply should not miss. This is the best time to buy that sparkling set of wheels that had you drooling at first sight.

      But before you get down to buying a car, you should be aware of certain important things on motor insurance that every car buyer should know. This includes comparing car insurance between providers, transferring your NCB, educating yourself on the available add-ons, understanding voluntary deductibles, and so much more.

      This page offers you a comprehensive insight on the factors you need to consider before buying your dream car.


    What is Car Insurance?

    In 21st Century India, owning a car has moved beyond being a status symbol to an everyday necessity. Being a car owner proves your financial independence, puts you in a refined league of your peers and wins you some much-needed brownie points with the family. But, the joys of owning a car could be short-lived if say, your vehicle meets with an unfortunate and untimely accident, is stolen, is lost in a raging flood, or worse - if it turns up to be the cause of an accident that costs the life or property of a complete stranger. These situations can be disastrous, costly and frustrating!

    Enter, car insurance. This handy insurance policy covers you against the uncertainties that could befall your cherished vehicle and protects you against the probable financial losses. Car insurance is usually very easy to purchase, to renew, and a number of reputed insurance companies and wealth managers count this as one of the premier products in their arsenal.

    Car insurance is essentially a policy purchased by the car owner to mitigate costs incurred due to an accident that damages the vehicle. Car owners pay premiums towards a policy with an insurance company. At the time of an accident, the company reimburses the cost of the damages incurred.

    The premium amount payable towards car insurance is decided by factors such as type of car, age of the vehicle, age of the insured, Insured Declared Value, etc. A car insurance policy covers for liability, property, and medical expenses. Although it is compulsory for vehicle owners to have insurance, some prefer to purchase additional insurance to ensure further protection.

    Why Do I Need Car Insurance?

    This is a very good question. Why bother with the chicken when you are a Vegan, right? Primarily, the following five reasons should answer your query:

    1. It’s the Law

    Under the provisions of the Motor Vehicles Act of India, all vehicles that operate in public places must have a car insurance policy as a mandatory document. At the very least, the policy must cover ‘third-party liability’, that is, a cover in scenarios where your vehicle was the cause of an accident that resulted in injury, loss of property and/or death of a third party.

    2. Pay Little Today, Save Big Tomorrow

    According to recent estimates, every 6th car crash in the world happens in India. This is staggering odds and a likely indication that your car could very well end up on the side of the road one of these days, after a brutal crash that could have resulted in injury, death and of course, massive losses in terms of repairs and replacements for your car. At that instance, the compensation and charges could run into several thousand or lakhs of rupees that may not be immediately available. However, with Car Insurance, there is complete peace of mind - paying a nominal premium today, to be tension-free when an unforeseen accident happens at a later date.

    3. Saving Time When Accidents Happen

    Accidents are stressful on their own without having to deal with the question of ‘What next?’ With your car insurance, comes your insurer’s expertise in handling these tense situations. Walking you through the claims process, helping you find a good garage and settling your claim on time - things that you will be thankful for when dealing with the aftermath of an unfortunate road accident.

    4. A Supplement for your Health Insurance

    Most Car 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. This acts as a powerful supplement to your health insurance - additionally covering for items that might not be covered by your health policy, including specialist care for accident-related injuries, dental repairs, funeral costs etc.

    5. Sustained Peace of Mind

    Just imagine, cruising on an open highway or wriggling through rush hour traffic without overtly worrying about the consequences (mostly financial) of a freak accident or an ‘innocent’ brush-up with an adjoining vehicle. Not having to pay for the mistakes of others. That’s mental peace - in it’s purest form!

    Why is it important to have Car Insurance in India

    There are several reasons why it is important to have an auto insurance for your vehicle including:

    • Third-party insurance is a necessity in India as per Section 146 of the Motor Vehicle Act, 1988.
    • The rate of vehicular accidents is high in India due to improper roads, especially during the monsoon.
    • Manmade disasters such as riots and theft or natural disasters such as floods and earthquakes cannot be predicted or controlled. Under such scenarios, an auto insurance provides you with financial assistance at your hour of need.
    • In the case of a death or disability, the family is burdened with financial needs such as medical costs, vehicle repair costs, third-party liabilities and so on. In such a case, an auto insurance comes in handy wherein you receive financial protection during your hour of need.
    • Whether it is a car part replacement or repair, the cost is very high. In addition to providing coverage against vehicle damage, some insurance companies offer roadside assistance and cashless garage facility to make life easier for you.

    Types of car insurance policies in India

    When choosing a Car Insurance plan, car owners must compare car insurance policies across all insurance providers to get a suitable policy and the lowest premium possible. There are 2 types of auto insurance plans available in India:

    • Comprehensive insurance: This type of insurance will cover third party liabilities as well as damages caused to you and your car. You will receive financial protection against liabilities arising from natural disasters, theft, and accidents. Comprehensive insurance plans include third-party premium and own-damage premium. Own-damage premium is determined based on the age of the car, make and model of the car, geographical location, and engine capacity.
    • Third-party insurance: The most common type of insurance found in India is third-party insurance as it is mandatory for all running vehicles on Indian roads. This type of auto insurance will cover damages caused to a third party in the event of a vehicular accident. The base premium is calculated based on the Cubic Capacity of your car engine. The revised third-party insurance rates by the Insurance Regulatory and Development Authority of India (IRDAI) are as follows:
    Engine Capacity Premium Rate
    Less than 1,000cc Rs.2,055
    Above 1,000cc but less than 1,500cc Rs.2,863
    More than 1,500cc Rs.7,890

    Compare Before Buying the Best Car Insurance Policy Online

    Want another reason to love the internet? How about the absolute ease and speed of comparing online a whole bunch of viable car insurance options?

    The best car insurance policies are out there and the World Wide Web offers you the personal, safe and time bound medium to explore them all.

    The internet is awash with third party websites that help you compare between the various car insurance policies available to you, from insurers both big and small.

    This definitely beats spending oodles of time, manually comparing between the various options- all the commuting, enquiring and double checking, is history!

    Humanity is an evolving species, right? The tested fundamentals of old are being slowly, but surely, replaced by modern day options that piggyback on the limitless possibilities offered by the internet.

    Comparing car insurance online between the various supposed ‘best’ car insurance policies is just one of the many advantages offered by the modern era of technology and the digital revolution.

    Why not indulge in them and gather the most updated, correct and easily retrievable information out there?

    If you are a vehicle owner, car insurance is definitely a very thoughtful (and compulsory) investment. And, if you are looking out for an all-encompassing car insurance policy, find the one that perfectly matches upto your requirements and limitations, online.

    What terms are usually covered by a car insurance policy?

    1. Loss or damage to your vehicle:

    The average car insurance policy covers the loss or damage endured by your vehicle due to the following reasons:

    • Natural disasters: Fire, explosion, self-ignition or lightning, earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide, etc.
    • Man-made mishaps: Burglary, theft, riot, strike, malicious act, accident by external means, terrorist activity, any damage in transit by road, rail, inland waterway, lift, elevator, or air, etc.

    2. Personal accident cover:

    As part of the overall car insurance, most insurers provide personal accident cover to protect you against an unfortunate accident while driving. This accident cover can also be extended to passengers, whose numbers must usually equal the maximum permissible occupancy in the vehicle, as stipulated by the vehicle manufacturer.

    3. Third-party legal liability:

    The policy also provides for scenarios wherein your vehicle might have been the cause of/ been part of an accident that resulted in the injury, disability, or death of an individual (not directly related to you) or caused damages to a third-party property.

    What is covered What is not covered
    Liability for injury or death of third party Injury to self, i.e., the driver of the insured car
    Liability for damage to property of third party Damages to the insured car

    4. Additional covers:

    Most policies also include provisions to add additional protection for the various secondary components of the vehicle, including electrical/non-electrical accessories, fog lights, stereo system, mats and seat cover, etc. Implementation of bi-fuel injection systems, such as CNG or LPG, can also be covered. Some of the riders that can be added to car insurance policies are:

    • Zero depreciation cover
    • Engine protect cover
    • Return to invoice cover
    • Loss of personal belongings cover
    • NCB protect cover
    • Roadside assistance cover
    • Personal accident cover for passengers
    • Daily allowance
    • Consumables cover
    • Key replacement cover

    The following instances are not covered under a standard car insurance policy:

    • Losses due to normal wear and tear of the vehicle/vehicle parts.
    • Mechanical or electrical breakdown of the car
    • Accident coverage for the passengers
    • Nuclear risks, hostilities, invasion, and war
    • Usage of alcohol or other intoxicants by the driver
    • Consequential damages, such as an oil leak leading to gearbox failure
    • Loss that has been staged deliberately
    • Fraudulent activities or acts of malicious nature
    • Using a private vehicle for commercial purposes

    Documents required for car insurance

    The documentation process is minimal in car insurance compared to other insurance policies. Anyone who owns a car and is above 18 years of age can purchase an auto insurance. You have to submit a copy of the Registration Certificate (RC) and duly-filled proposal form to obtain an auto insurance. In the case of a car insurance renewal, you have to submit the previous insurance policy documents along with the RC and proposal form. Ensure the details provided by you are correct or the company can terminate your policy at anytime on the basis of misrepresentation.

    How premiums are determined for car insurance policies?

    There are several factors that an insurance provider will take into account to calculate your car insurance premium such as:

    Insured Declared Value (IDV) The insurance provider will consider the IDV of the make and model of your car. The IDV changes annually after adjusting the depreciation value of the car.
    No Claim Bonus (NCB) You are entitled to a NCB if you haven’t made any insurance claims in the previous year.
    Discounts or offers If the car contains additional accessories that are not included in the selling price of the car or a part of the manufacturer’s catalogue, then the premium for those accessories will be calculated separately.
    Age of the car The entry of new models of cars can reduce the value of the older models.
    Geographical location India is divided into Zone A and Zone B. Zone A includes all the major cities in the country (Bangalore, Ahmedabad, Chennai, Mumbai, Kolkata, Pune, and New Delhi) where the accident risk is considered to be high, therefore the insurance premium is higher than in Zone B (the rest of the country).
    Add-ons Facilities like roadside assistance, lock and key replacement, and loss of personal belongings will add to the insurance premium cost.

    The insurance premium for used cars that are more than 5 years old will be decided based on a mutual agreement between the car owner and the insurance provider.

    How to save on Car Insurance Premium

    Looking to buy an auto insurance policy for your new car? You should know that certain important factors can assure you a lower premium rate on your auto insurance. This can be achieved without having to compromise on any of the benefits that you are looking for in the plan.

    Listed below are some ways in which you can reduce the cost of your car insurance:

    1. Opt for a higher voluntary deductible - Voluntary deductible is a part of the car insurance claim amount that you will be required to pay. Only after you pay the deductible will the policy kick in and pay you the remaining claim amount. You can choose the voluntary deductible amount at the time of policy inception. The higher the voluntary deductible, the lower will be your premium. However, you should only opt for a deductible amount that you will be able to comfortably pay at the taxing time of a claim.
    2. Decrease the coverage on older cars - At the time of policy renewal, you should review your coverage and make sure that your auto insurance is in alignment with your needs. So, for instance, if your premium is more than 10 times the worth of your car, the car insurance is not a cost-effective proposition. In this situation, you should think about reducing the extent of coverage.
    3. Do not raise claims for small damages - If you do not make any claims in a policy year, your car insurance company will reward you with a No Claim Bonus (NCB). This is a very attractive proposition, as it will bring down your insurance premium at the next renewal. The No Claim Bonus discount will increase with consecutive claim-free years, and can even amount to a 50% reduction in premium after 5 years. So, if your car has suffered damages, identify the cost of repairs and assess whether it can be easily paid from your own pocket. You should take into consideration the NCB discount when deciding to raise a claim under car insurance. If the cost of repair is much more than the savings you get from the NCB, then you can go ahead and file a claim.
    4. Buy multiple insurance policies from the same insurance company - Some insurers offer loyalty discounts to customers who buy multiple insurance policies from them. So, if you have a life insurance policy with an insurer, consider buying a car insurance plan from the same provider. You may be able to save a significant amount on your premium.
    5. Preserve your NCB and transfer it - If you are shifting insurance companies, then you can transfer the accumulated NCB to your new auto insurance policy. For this, you will have to get in touch with your previous insurer and request for an NCB preserve certificate. This way, you can store the NCB for up to 3 months. Within this time, you should transfer the bonus to a new car insurance policy. You will receive a discount in premium as per the accumulated bonus.
    6. Compare costs and buy online - If you are looking to get the most optimum insurance plan for your needs at a reasonable price, it is advisable to compare policies between insurance companies at neutral financial websites. This way, you can identify a plan that fits within your budget and also offers maximum protection.
    7. Get membership in automobile associations - If you become a member of the Automobile Association of India (AAI), you can get a discount on your car insurance premium.
    8. Install security devices - If your car is equipped with an anti-theft device or any other safety gear, you are more likely to get a lower premium quote.
    9. Renew the policy on time - Most car insurance companies insist on vehicle inspection if your car insurance has expired before you bought a new one. The premium quote in this case will also be higher. Some insurers even refuse to renew car insurance that has lapsed for a longer duration.
    10. Buy only the required coverage - If you purchase several add-ons to get maximum protection from your insurance, you should also be aware that your premiums will be higher. So, you should only opt for add-on covers that you really need.

    Provide accurate details when buying insurance - Car insurance companies take into account your age, profession, usage of the car, and driving history when offering you a premium quote. So you should always provide accurate details to the insurer.

    Agents vs Dealers vs Brokers

    There are various channels through which you can obtain an auto insurance for your vehicle as listed in the below table:

    Agents Dealers Brokers
    Insurance agents represent a single insurance company. They are employed to sell the insurance products of a particular insurance provider. Car dealers sell cars to the customer. The car usually comes with a third-party insurance. Brokers are individuals or organisations licensed by the Insurance Regulatory Development Authority of India (IRDAI) who can sell insurance products from various insurance providers.
    Insurance agents have expertise in insurance products sold by the particular insurance company that they work for. Dealers usually have tie-ups with a particular insurance provider. Therefore, they may have minimal knowledge about the insurance plans provided by that particular insurance provider. Brokers are experts in insurance policies provided by various insurance companies and also assist in after-sales service.
    They can guide you in choosing the right policy and making claims. They also have extensive knowledge on their products. They can handle all the paperwork involved in obtaining the third-party insurance that they are selling. You have opportunity to compare several policies and choose the one that best suits your insurance needs.
    If you want to switch insurance providers, you will have to approach a different insurance agent. Car dealers don’t have the knowledge required to help you choose the right insurance plan to suit your needs. Although a broker can help you through a claim settlement process, the final decision lies in the hands of the insurance provider.

    Car insurance add-on covers - optional but most important

    Car insurance policies can be customised to suit your insurance needs by attaching add-on covers to your base insurance plan. The various add-on covers offered in India are:

    Hydrostatic Lock Cover: Comprehensive insurance doesn't cover any damage to your car engine. During floods or rains, your car engine could get damaged. Hydrostatic lock cover provides cover against any engine parts repair or replacement due to water damage. This add-on cover is applicable only for vehicles that are less than 5 years old.
    No Claim Bonus Protector With this add on, the no claim bonus can be retained even after making 2 claims in a policy period. Usually, a single claim can result in the absolution of your no claim bonus.
    Co-Passenger Cover In addition to the coverage provided for the owner or driver, this cover provides coverage for co-passengers in the case of a death or disability.
    Key Replacement Cover This add-on cover will cover the replacement cost of your stolen, lost or damaged car keys. You can make 2 claims during a policy term.
    Zero Depreciation Cover During a claim, you will have to bear the depreciation cost on repairs or replacements of fibre, glass, rubber, and plastic parts of the car. With this add-on cover, you don't have to bear the depreciation cost.
    Hospital Cash Cover If you are hospitalised as a result of a vehicular accident, you will receive a lump sum amount for duration of your hospitalisation, subjected to a maximum hospitalisation period at the discretion of the insurance provider.
    Ambulance Charges Cover This add on covers the ambulance transportation charge of the injured person.
    Consumables Cover This add-on provides cover for unfit consumables such as nuts, bolts, and oil.
    Invoice Cover In the case of total loss of your vehicle, you can at the least recover the Insured Declared Value (IDV) of your car.

    Car Insurance Companies in India

    “Based on IRDA Annual Report 2015-16 on Business Revenue of Insurers”

    1. ICICI Lombard Car Insurance

      If you scan across a multitude of popular media, the ICICI Lombard car insurance review will be found to be very encouraging and superior as compared to its immediate competition. A robust, customer oriented and hassle free insurance plan, the ICICI Lombard Car Insurance is designed for the busy,on-the-move Indian. Packed with such features as immediate online policy issue, on-road assistance at anytime and anywhere, over 3100+ network garages and a series of thoughtful riders including ‘Zero Depreciation Cover’ and ‘Accidental Cover for Co-Passengers’, this policy works hard to qualify as the ideal car insurance option for you. No wonder, the company is an absolute trendsetter when it comes to car insurance.

    2. Bajaj Allianz Car Insurance

      The car insurance packages from Bajaj Allianz are a very popular option with the everyday Indians who are proud owners of their very own set of wheels. Feature rich, customer centric, transparent with easy documentation, Bajaj Allianz Car Insurance comes with such irresistible features as cashless claims at over 1500 garages across India, competent 24x7 customer service, easy claims assistance and the option to purchase and renew the policy online. The handy Bajaj Allianz car insurance calculator available on our website, helps you pinpoint the exact dynamics of your investment and stay on top of things. The Bajaj Allianz Car Insurance is a solid loan option that has enjoyed immense popularity and support from the point of its inception.

    3. Reliance Car Insurance

      The car insurance package from Reliance, one of India’s iconic conglomerates, is tuned to be highly customer oriented, hassle free and reliable. The list of features and benefits are many, including, limited documentation, cashless facility at 2100+ member garages across India, easy and hassle free claim settlement as well as comprehensive on and off the road insurance that is in line with international standards and configured to take minimum time, minimum efforts and impart maximum feedback and consequently, peace of mind. Reliance Car Insurance has managed to build a staunch following in India, comprising mainly of the busy, always mobile, quality conscious and technology driven Indians.

    4. Tata AIG Car Insurance

      With such unique features as free car pick up in the event of an emergency, direct and hassle free settlement within 7 days, no claim bonus protection and coverage for non-core accessories like glass and plastic parts, Tata AIG was bound to be a key player in the car insurance segment- and the Tata AIG Car Insurance review from a plethora of satisfied customers amply proves this. The company is a collaboration between two business behemoths, the Tata Group and the American International Group, Inc. (AIG), thereby assuring that professionalism, domain expertise and quality are part of the deal when you purchase car insurance from Tata AIG. If you seek a robust, scalable and reliable insurance option for your cherished set of wheels, then Tata AIG Car Insurance is one of the best in the industry.

    5. Royal Sundaram Car Insurance

      The age old adage of ‘with experience comes perfection’ sits well with the Royal Sundaram Insurance Company. Licensed since 2001, the Royal Sundaram Car Insurance is a feature rich package that pales its competition in terms of the sheer customer centric options offered. 1800+ cashless garage network across India, 24x7 claims assistance, unlimited claims for zero-depreciation cover and free roadside assistance in the case of emergency makes the car insurance policy from Royal Sundaram a definite advantage. Enjoy peace of mind, cut loose and stretch your car’s running legs with a policy that is designed to have you covered at all times. Burn some rubber without worrying about a flat tyre, a breakdown or accident, Royal Sundaram’s assistance is with you anywhere and everywhere.

    6. Bharti AXA Car Insurance

      A car insurance policy that’s designed to protect your car, and importantly its passengers and you; Bharti AXA Car Insurance is a clear crowd favourite. Based on a multitude of customer feedback, the car insurance can be pegged as being exceptional, extremely car owner friendly and with a short turnaround time in terms of claim settlements. The essential features of this car insurance policy includes cashless servicing at 2000+ network garages across India, easy 24x7 claim assistance that is backed by a hassle free claims settlement process, and a string of helpful add-on covers. As one of the most popular general insurance companies, Bharti AXA has established its credibility on the back of quality driven processes and adoption of their cherished customers’ concerns as the guiding light that prompts the introduction of newer insurance products. No wonder, when it comes to Bharti AXA car insurance review, there are cheers everywhere!

    7. HDFC ERGO Car Insurance

      What happens when an Indian banking giant meets a world-beating general insurance pioneer? You get HDFC ERGO General Insurance and its premier product, the HDFC ERGO Car Insurance an insurance policy that is close to the popular public expectations, this car insurance comes loaded with lots of customer centric features and benefits. The list includes cashless claims service at 1600+ member garages across India, a dedicated and expert customer support team that’s always at your beck and call, easy and hassle free claims process and instant online policy issuance and renewals. HDFC ERGO has established itself as a premier car insurance product amongst the discerning Indian public.

    Know More About Car Insurance Companies in 2016

    In the modern context, purchasing car insurance online has emerged as a popular option amongst busy people, especially working professionals dwelling in the metros and other big Indian cities. Car insurance companies too have woken upto the latent potential of offering motor insurance online, hosting comprehensive web portals that simplify the procedures of gaining information, signing up and renewing car insurance policies through the magic of the World Wide Web. How can you purchase car insurance online? Read on…

    1. Compare- Different companies, different car insurance products, and hidden somewhere in this pile is your ideal motor insurance policy. It pays to check out the various available options, in terms of the money you save and the additional features that you can get for the average buck.

    2. Login to Purchase- After selecting the ideal policy, it’s time to seek out the insurance provider’s website and check if the option to purchase the motor insurance online is available. Most well-known companies do, and the purchase procedure in itself shouldn’t take a great deal of time. Payments can be affected through credit/debit cards, or netbanking. Also, in most cases, provision of the requisite documents could wait until an actual claim is raised on the policy at a later date.

    3. Renew Online- If purchasing car insurance online was easy, periodically renewing the same is simpler. Just pay heed to the timely emails/SMS from your insurance provider and renew the policy just as how you purchased it in the first place.

    The World Wide Web has simplified our lives in a whole range of ways- the option to buy car insurance online being one such uber convenience. Ditch the long lines and the confusion, compare and purchase your motor insurance policy online.

    In principle, the act of purchasing your car insurance online saves time, effort and the expenditure of money and patience, to varying degrees. Elaborating, the perks of latching onto a online car insurance policy are summarized as follows-

    Hassle Free Process- Unlike visiting an actual outlet of the insurer, the online car insurance application process is simpler and quicker. Plus, there are no documents to submit or verifications to affect immediately. Thus, within a very limited, clearly defined steps, you are the proud owner of a comprehensive car insurance policy. All of this, from the comfort of your abode or the workstation at your office!

    24x7 Coverage- The inherent speed of policy issue that is a principal characteristic of acquiring a online car insurance plan ensures that you are never without coverage. With the purchase of your car insurance online, get instantaneous policy issue with e-copies of the policy that can be accessed anytime, anywhere and printed out.

    Everyone is Doing it- Most of the domestic and international car insurance providers operating in India provide the option to purchase or renew your car insurance online. It’s all about customer comfort, right?

    The other benefits of subscribing to the e-route include the freedom afforded to you when choosing from a big list of insurers via their online profiles, and the option to conduct business the electronic way without involving money in its physical form. Bottomline, the manifestation of car insurance online is here to stay!!

    A car insurance policy offers comprehensive protection and safeguards against legal hassles & expensive repairs in case of a mishap involving the insured car. Choosing the right car insurance can be quite tasking. Not all the policies available in the market gel well with your expectations. It is important to engage good amount of time and resources in learning about benefits & features of policies available in the marketplace to ensure you get the best car insurance policy.

    Some of the key considerations should revolve around the following points.

    Claim Settlement Ratio

    • How many claims did the insurer receive during a stipulated period and how many were fully settled?
    • You can lookup for data on claim settlement on the insurer’s portal or scout for relevant forums online for reference.
    • Higher the claims settled, better are your prospects of a hassle free claim if a need arises in the future.

    Insurance Premium Amount

    Money plays a pivotal role in choosing the right car insurance policy. At the end of it, we would like to have a policy that has the best features at a nominal price.

    • Compare car insurance pricing online
    • Get quotes and decide
    • Inquire about hidden charges
    • Estimates for add on coverage

    After Sales & Customer Service

    A customer friendly insurer understands that efficient customer support is key to customer satisfaction & invests fair amount of resources in building an efficient customer service team.

    • Understand the efficacy of after sales and customer service
    • Read about experiences posted by existing customers
    • Review sites and online forums.

    In addition to the above, smaller facets such as network garages & workshops, cashless benefits, brand value should be explored before buying a car insurance.

    Listed below are the steps by which you can reduce the cost of your car insurance policy:

    Policy renewal
    • Renew your car insurance policy to avoid paying a higher premium the following year and undergoing car inspection after policy lapse.
    No Claim Bonus (NCB)
    • Don’t make small claims for damages such as dents and scratches. If you have not made any claims in the previous year, you will be rewarded with a No Claim Bonus at the time of policy renewal. NCB will be given to the policyholder in the form of premium discounts at the time of policy renewal.
    Safety features
    • If you install security or safety devices that are approved by the Automotive Research Association of India in your car, you can get discount on your insurance premium.

    In today’s fast paced world, getting things done online is nothing short of a divine boon. Car Insurance renewal online is today’s reality, and quite a popular one at that. Almost all car insurance companies in India provide their customers the option to renew their policies online, through simple net banking transactions, or the safe usage of credit/debit cards.

    In the bargain, the customer saves valuable time, saves on the basic impetus of money as well as saves his/her often understated patience. The insurers on the other hand, offer this simple online renewal option and are assured of more inquisitive interest from their target audience, greater number of loyal repeat customers, and sizable savings in terms of setting up and maintaining the offline infrastructure. Online policy renewal is here to stay!

    If you drive a car, there is a good chance that you will be involved in an incident that damages it. There are certain steps that you should follow to get your car insurance provider to reimburse you for the damages.

    When should you file a claim? You should get in touch with your auto insurance company as soon as you are involved in an accident. You would also have to inform the insurer if your car is vandalised, stolen, or damaged due to other events such as severe weather or fire. You can get the contact details of your insurance company from the policy documentation.

    When filing a claim, you will have to provide the following details to the insurer

    • Your full name and insurance policy number
    • The policy tenure
    • Date and time of the mishap
    • The names, phone numbers, and addresses of the drivers involved, passengers, and witnesses
    • The driving license numbers and license plate numbers for all drivers/vehicles involved

    Your car insurance company may request for further details pertaining to the event, as applicable. It will be useful to take photos of any personal injuries that had occurred at the time of the incident. This can be submitted to favour your stand when you raise a claim.

    1. For own-damage claims:

    Once you contact your car insurance company, the following events will occur:

    • The case will be assigned to a representative of the insurance company to work on.
    • You will have to discuss with the claims professional the coverage under the policy and damages incurred.
    • The claims professional will evaluate the situation and inspect your car. He/she will also examine the evidence for injuries that have been reported.
    • Your car will then be towed to a network garage for a survey and damage assessment.
    • After the insurer approves the estimated repair cost, it will send a confirmation to you and the network garage. The repair work can then commence.
    • The case will be resolved and payments made. Depending upon the coverage offered by your car insurance policy, you may have to pay a part of the claim amount that corresponds to deductibles and depreciation.
    • The case will be closed by the insurance company.

    When you inform the car insurance provider of the accident, you should also file an FIR with the police. This is a critical step for ascertaining the validity of the claim.

    2. For third-party liability claims:

    The process of claiming under third-party liability insurance is more complicated. In case you are involved in a car accident where the fault was yours, the third party can raise a claim under your insurance in the following way:

    • He/she should lodge an FIR at the local police station.
    • You should share a copy of your auto insurance policy with the third-party, so that he/she can raise a claim under it.
    • All third-party car insurance claims are settled in a Motor Accident Claims Tribunal (MACT). The third party will have to file a case at the local tribunal.

    It should be noted that the claims process under third-party liability insurance is a cumbersome process. So, these should ideally be settled out of the tribunal, if possible.

    3. For stolen car claims:

    If your car was stolen, you should follow the steps below to raise a claim:

    • Lodge an FIR with the police.
    • Inform your insurance company of the theft. The following documents will have to be submitted:
      • A copy of the registration certificate of your car
      • Copy of your driving license
      • A copy of the FIR
      • The first two pages of your car insurance policy document
      • A letter addressed to the RTO

    Following this, the police will attempt to locate your vehicle. After 6 months, if the vehicle has not been found, the police will issue a ‘Non Traceable Report’ and complete the transfer of the RC of your lost car to the insurance company. A letter of subrogation will also be submitted. Once all relevant documents are received by the insurer, the claim will be settled.

    In India, car insurance is mandated by the law. However, there would have been instances wherein you had forgotten to renew your auto insurance policy. A big disadvantage of missing out on renewing your car insurance is that you may lose your hard-earned No-Claim Bonus (NCB).

    An NCB is a reward given to a policyholder who refrains from raising car insurance claims during a policy year. This bonus translates into a reduction in premium for the subsequent year. As the number of claim-free years increases, the amount of NCB earned also becomes greater. If your motor insurance lapses beyond 90 days, you could lose your entire NCB.

    Driving without a valid car insurance also makes you vulnerable to heavy fines. Hence, it is imperative that you renew your auto insurance on time.

    Listed below are the steps to renew an expired car insurance policy:

    • Intimate the insurance company - As soon as you learn that your motor insurance has expired, you should either get in touch with an insurance agent or the car insurance company. The sooner you initiate the process, the easier it is to prevent a situation wherein you will be required to pay higher premiums. Some insurers also refuse to renew the insurance of a car with an expired policy. This is more common in the case of an old car.
    • Do not drive till the car is insured again - If you drive a car without valid motor insurance you will be exposed to several risks leading to heavy financial loss. Hence, it is advisable to use your car only after it is adequately insured again.
    • Decide on the insurance cover required - When you are looking to renew your car insurance, it is a good time to explore the other options available to you. You can analyse the coverage offered by alternate insurance providers and narrow down on a plan that offers you optimal coverage at the best cost. You should keep in mind that it is possible to compare policies online at neutral financial websites, free of cost.
    • Keep all necessary documents ready - After you have finalised on a policy, you should contact the insurer to find out about the required documentation. The most important documents that should be furnished at the time of policy renewal are a copy of the car’s registration certificate and the previous insurance policy. You will also be required to provide other details such as:
      • The city where the car was registered
      • The RTO’s address
      • The first date of registration
      • The car’s model and make
    • Get the vehicle surveyed - The insurance company usually sends a surveyor to look at the condition of your car before the insurance is offered. You have to set up an appointment for the same. The surveyor will assess the pre-existing damages on the vehicle and decide whether it qualifies for insurance or not.
    • Buy the insurance immediately - The inspection done by the surveyor is usually not valid beyond 24 hours. So, you should buy the policy as soon as you receive a positive survey result. Purchasing the policy online would save you a lot of time and effort on this front.

    Car insurance protects the interests of a car owner and safeguards it against expensive repairs and damages caused to self, the insured car and third party. We must take utmost care while driving by following traffic rules and by navigating safely to our destination. Having said this, there can be an unfortunate accident involving the car resulting in damage and/or casualties. In such situations, the car insurance comes handy, helping you to meet the financial obligations relating to the mishap.

    The claims procedure can be complex if you do not understand the dynamics surrounding it. Let us tell you more about how you can make it an easy experience.

    Claim for Own Damage

    In case of a major accident resulting in heavy damage to the car,

    • Inform the insurer immediately.
    • Record a claim and if required by the insurer, you may have to report the incident in the local police station.
    • Do not attempt to move the car unless confirmed by the insurer.
    • If it is a minor damage that does not require police intervention, move the car to a safe location & inform the insurer.
    • Raise a car insurance claim after assessing the damages. Upon authorisation by the representing surveyor, the claimant can proceed with the repair and replacement work.
    • You can pay and claim or if cashless facility is available, the car insurer directly settles the claim with the garage.

    Third Party Car Insurance Claim

    If the mishap involving your car resulted in damage or casualty to a third party that requires medical attention, shift the victim to a nearby medical facility immediately and call the insurer. The representatives will instruct you further on the action points.

    Get More Info On Third Party Car Insurance

    Theft Claim

    If the car is stolen,

    • Report to the jurisdictional police and insist on an FIR(First Information Report).
    • Call the insurer immediately and inform them about the theft.
    • You will asked to provide a written complaint in the form of an e mail or a letter.
    • Follow the instructions provided for hassle free settlement of the car insurance claim.
    • Referring to the original policy document will help you in getting acquainted with the timelines and procedures.

    The modern world is online 24x7, doing everything at the click of a button. From shopping to clearing out EMIs, online transactions are deemed to be highly secure. So why should you wait in a queue to subscribe to a good car insurance policy? Insurance companies have woken up to the advantages of offering car insurance renewal online and are ably supported by third party websites. These platforms enable you to compare the available insurance policies, check your eligibility, and buy a plan that is suited to your needs. The inherent procedure is as simple as described below:

    1. Know your requirements - How much car insurance are you looking for? What kind of premium amount are you comfortable with? What features and benefits would make for a comprehensive car insurance policy for your needs? Understanding your requirements is always the first step.
    2. Compare policies - You can compare car insurance plans offered by different companies at neutral financial websites. You can also assess your eligibility and the premiums that will have to be paid towards a plan.
    3. Go online - Access the online portal and purchase the policy after complying with some basic Know Your Customer (KYC) procedures. Usually, requisite documents can be submitted at a later stage when claims are raised on the policy, rendering the online signup procedure that much faster.
    4. Car insurance renewal online - You can also renew your car insurance policy online. You can benefit from timely notifications from your insurance provider and pay your premiums on the portal itself. All of this is quick, robust, and economical when compared to the traditional, offline method.

    The steps involved in renewing car insurance online are listed below:

    • Visit the insurer’s website and select the option for renewal of policy. You will also have to provide your login credentials.
    • You will receive an application form that you should update accurately. The form will need to be updated with the expiring car insurance details, so keep this information handy. Once you have updated the form, submit it online.
    • Next, you will have to pay the premium for policy renewal. Payments can be made through credit or debit cards.
    • After the payment is done, the insurance company will verify the details provided and send you an acknowledgement for the policy renewal request.

    You can renew auto insurance policies through third-party financial websites as well. These companies are authorised to offer you service in the most secure manner. You will also receive expert guidance on policy selection.

    When it is time to renew your car insurance policy there are certain things that you have to take into consideration such as:

    • Multiple policies discount: If you purchase more than one policy from the same insurance provider, you may be eligible for a discount on your insurance cost.
    • Add more than one person: You can add more than one person to your car insurance cover with a co-passenger cover. Thus, save up on insurance cost for another policy.
    • No Claim Bonus: If you haven’t made a single claim the previous year, you can enjoy a No Claim Bonus in the form of a discount on insurance premium when renewing your policy.
    • Claim Settlement Ratio: Check the CSR of your insurance provider and change the insurance provider if the CSR is low or the after-sales service is bad.
    • Appropriate coverage: Check if you have appropriate coverage for your vehicle and yourself. This includes evaluating the Insured Declared Value (IDV) of your car.
    • Discounts and offers: Choose an insurance provider who offers excellent discounts on premiums and other offers such as cashless garage facility and roadside assistance.
    • Safety equipment or measures: If you install safety devices in your car, the insurance premium may be lower than usual.
    • Add-on covers: From zero depreciation cover to medical expense cover, you can customise your insurance policy with relevant add-ons.

    It’s advisable to be aware of what is included and excluded under your car insurance policy in order to avoid difficulties at the time of a claim. The below table lists the inclusions and exclusions under the auto insurance policies available in India:

    Inclusion Exclusion
    Auto insurance covers third-party damage and personal damage as a result of a road accident. Damages caused as a result of accidents occurring while driving under the influence of alcohol or drugs is not included under the policy.
    Damage caused as a result of natural disasters such as floods, earthquakes, etc. Intentional or deliberate accidents are not covered.
    Coverage against manmade disasters such as theft, riot, fire damage, etc. Illegal activities such as driving on the wrong side of the road, invalid driving licence, underage driving and such are not covered.
    Auto insurance provides cover against damage to third-party property or body. Auto insurance doesn’t cover driving outside the geographical zone, lapsed policies, regular wear and tear of car parts, electrical or mechanical damages, etc.

    While choosing a car insurance, the car owner can take certain steps to get the lowest insurance premium possible such as:

    • Members of the Automobile Association of India will receive additional discounts on premium.
    • Discounts will be offered to those who install anti-theft devices in their car for safety.
    • No Claim Bonus (NCB) will be given to the policyholder in the form of premium discounts at the time of policy renewal. Don’t make small claims such as dents and scratches. If you have not made any claims in the previous year, you will be rewarded with a No Claim Bonus at the time of policy renewal.
    • Purchase car insurance policy online to get discounts on your premium and to avoid paying distribution costs.
    • Increase the voluntary excess to lower the premium.
    • Insurance providers may reduce the premium to those owning more than one insurance policy with the same company.
    • Pay the premium on time to avoid policy lapse. Make it a point to renew your car insurance policy on time. You can begin the renewal process 2 months before the policy expiry date. Renewal process has become extremely easy and fast now with the online renewal facility provided by most reputable insurance companies.
    • Park the car in a garage to increase its safety and lower its insurance premium.
    • A smart device plugged into the OBD of the car engine can record the car owner’s driving history. The captured data can be used by the insurance provider to determine the insurance premium at the time of policy renewal. Therefore, drive carefully to keep low risk scores.
    • Nominate an experienced driver of a suitable age for the insurance policy.
    • Opt for traditional cars as sports cars attract higher insurance premiums due to the high accident-risk factor. Similarly, vintage and classic cars will have higher insurance premiums as they require a specialised insurance policy.

    The documents needed for accident claims are:

    • Duly-filled and signed claim form.
    • A copy of your vehicle’s RC.
    • A copy of your valid Driving Licence.
    • A copy of the first 2 pages of your policy document.
    • A copy of the FIR.
    • The original estimate, invoice, and payment receipt for cash and cashless garage.
    • Stamp required in the case of a company registered vehicle.

    The documents needed for theft claims are:

    • Duly-filled and signed claim form.
    • A copy of your vehicle’s RC with car keys.
    • A copy of your valid Driving Licence.
    • A copy of the first 2 pages of your policy document.
    • A copy of the FIR.
    • RTO transfer papers, and Forms 28, 29, 30, and 35.
    • Final report from the police mentioning that the vehicle cannot be located.
    • Stamp required in the case of a company registered vehicle.

    The documents needed for third-party claims are:

    • Duly-filled and signed claim form.
    • A copy of the FIR.
    • A copy of your valid Driving Licence.
    • A copy of the first 2 pages of your policy document.
    • A copy of your vehicle’s RC.
    • Stamp required in the case of a company registered vehicle.

    At the time of policy renewal, many policyholders consider changing their insurance provider under certain circumstances such as:

    • If you want to get a lower premium that is not offered by the current insurance provider.
    • If you are dissatisfied with the service provided by the current insurance provider.
    • If another insurance provider offers better discounts, add-on covers, and customised car insurance policies than your current insurance provider.
    • The Claim Settlement Ratio and after-sales service of the insurance company has to be taken into account when choosing an insurance provider.

    Auto insurance makes up almost 70% of the general insurance industry. There are several auto insurance companies competing with each other to get the attention of the customers. Compare the various insurance policies provided by top insurance companies before purchasing the one that best suits your car insurance needs. ICICI Lombard, Bajaj Allianz, Reliance Car Insurance, Tata AIG, and Bharti AXA are some of the top car insurance providers in India.

    If you have decided to buy a car, you would be looking to protect it with the most optimum auto insurance plan. With this in mind, you decide to purchase a comprehensive car insurance policy. In the future if you are in a situation where you actually have to file a claim, you would realise that the comprehensive car insurance plan is not complete protection. So where is the gap?

    • A standard private motor insurance policy does not cover depreciation due to regular wear and tear of the insured vehicle. This implies that at the time of a claim, the policyholder is required to pay a part of the claim amount that corresponds to depreciation.
    • Consequential damage, which is an indirect outcome of a direct loss, is not offered coverage under a comprehensive plan either.
    • The amount corresponding to excesses/deductibles will have to be paid by the policyholder.

    The depreciation pertaining to specific parts of a car would amount to quite a lot of money. You can get an idea of this if you read the fine print of your policy document. As per the existing Insurance Regulatory and Development Authority of India (IRDAI) guidelines, the depreciation on car parts is as follows:

    Rubber, nylon, batteries, and plastic parts 50% depreciation
    Fibre glass components 30% depreciation
    Wooden parts Depreciation is based on the age of the vehicle. For instance, 5% in the first year, 10% in the second year, etc.

    In the realm of car insurance, the problem of depreciation has a definitive solution. Insurance companies offer bumper to bumper cover to customers who would like to avail extra protection. Also referred to as zero depreciation cover, this type of insurance can be added to the base policy to enhance its coverage.

    If a car is insured using bumper to bumper insurance, there is total coverage for all rubber, metal, and fibre parts of the car without any deduction pertaining to depreciation. Some insurers also offer key replacement facility, emergency transport, and roadside assistance feature along with zero depreciation covers.

    In a nutshell, a car that is insured with a comprehensive base policy and bumper to bumper add-on cover will usually be covered for the following incidents:

    • Own-damage cover
    • Third-party liability cover
    • Zero depreciation on car parts
    • Cost of emergency transport
    • Roadside assistance cover
    • Key replacement coverage
    • Tow-away services

    The zero depreciation cover is also referred to as depreciation waiver policy or nil depreciation cover.

    Bumper to bumper insurance is one of the top selling add-on car insurance plans in India. It is popular due to the following reasons: First-time car buyers prefer opting for this cover, as they are wary of accidents and subsequent claims. Car owners who employ drivers and those who use their cars regularly also favour this add-on cover. Owners of high-end cars tend to protect their vehicles using a nil depreciation cover. Key features of the zero depreciation cover include the following: Bumper to bumper insurance policies offer greater coverage; hence, the policyholder is required to pay extra premium (in the range of 10% to 20% of the base policy premium) to avail this benefit. The cover is offered only to cars that are below 5 years old. The zero depreciation plan has limitations on the number of claims that the policyholder can raise in a year. Details of the limits will be mentioned in the policy document and it varies between insurers. The plan does not protect the vehicle from engine damage due to oil leakage or water ingression. Also, standard wear and tear to clutch plates, bearings, and tyres are not usually covered. Other exclusions under the plan are mechanical breakdowns that do not result in an accident, coverage for consumables, and cover for consequential damages. At the time of a claim, the policyholder will be required to pay a component of the claim value that corresponds to compulsory deductibles. The exclusions that usually fall under a comprehensive motor insurance plan are also applicable to bumper to bumper insurance: Coverage is not offered if the private car is used for commercial purposes. The driver not having a valid driving license is excluded from coverage. If the driver is driving under the influence of alcohol or drugs, the cover will not be valid. If the driver is involved in illegal activities or malicious driving, cover is not offered under the plan. If a claim is not raised within the specified timeframe, it will be rejected.

    The cashless insurance facility was first introduced in the health insurance domain. It has since gained a lot of popularity and has become an intrinsic part of the car insurance sector today.

    If your car is insured with a cashless auto insurance policy, then you can get it repaired at any of the garages in the network of the insurance company. The settlement of the repair costs will be directly between the network garage and the insurance company. Effectively, you will not be required to pay for the expenses, except for a small amount that corresponds to deductibles and depreciation of the car parts.

    The cashless claim settlement facility works as described below:

    • All car insurance companies are affiliated to network garages across the country. This enables customers to avail cashless insurance facility, irrespective of their location. In effect, the cashless facility is an easy and hassle-free method of settling an auto insurance claim.
    • The list of network garages will be available at the website of the insurance company. You can also get in touch with the insurer to receive instructions on how to reach the nearest network garage.
    • The cashless claim facility can be availed on the insurance of used cars as well. However, you will have to check with your insurer on specific details regarding this.
    • If your insured car is involved in an accident, you can avail the cashless claim settlement facility at any of the insurer’s network garages.
    • The insurance company will pay for all the damages incurred, except the excesses that were agreed upon in the contract.
    • The cashless claim facility is useful for individuals who do not usually have a large amount of cash on hand. Also, the entire process is completely stress-free.
    • Some insurers offer the roadside assistance service along with the cashless claim facility. The free towing, pickup, and car wash services offered as part of this package is particularly useful if your vehicle is involved in an accident in remote areas.
    • The quality of service offered at network garages is usually better than that available at local garages. Hence, at a network garage you can be assured that your vehicle will be repaired in a more transparent and satisfactory manner.

    A policy under which you can avail the cashless claim facility may have higher premiums. Also, there are instances where the approval for cashless claim settlement takes time. In case the damage incurred by your car is a minor one or if you want to expedite the repair work, raising a reimbursement claim can be a better option.

    If you plan to raise a reimbursement claim, you can take the car to a local garage for the repair work. Following this, you can raise the claim for reimbursement of expenses with the insurer after submitting all relevant documentation.

    The purchase of used cars has been gaining popularity in India. It should be noted that the process of buying used cars not only involves selecting the right brand and model; it also includes a very important step - the transfer of car insurance to the new car owner.

    When you purchase a used car, the first step would be the transfer of the registration certificate (RC). Ideally, the car insurance should also be transferred at the time of transfer of the RC. The car owner should raise a request with his/her insurance company for the insurance transfer.

    Once the new owner has bought the car, the policy of the previous owner will not be valid.

    As per IRDAI guidelines, the name and address on the insurance documents of a car and the RC should match. So, in the event of an emergency, the new car owner can recover the incurred expenses without too many hassles.

    The following documents are needed to transfer car insurance:

    • Copy of the registration certificate (Form 29)
    • Old insurance policy document
    • No Objection Clause (NOC) from the previous car owner
    • New application form, duly filled in
    • Inspection report - This will be created by the insurance company after vehicle survey

    The No-Claim Bonus (NCB) is a reward given to a car owner for not raising any claims in a policy year.

    • The NCB cannot be transferred between owners of the same car, as it is not tagged to the car itself. So, when you transfer the insurance of your car to a new owner, the NCB accumulated on the insurance will remain with you. The NCB can be preserved through an NCB retention letter that is issued by your insurance company. Later the preserved NCB can be used on the insurance of a new car.
    • If an individual is transferring the insurance from his/her old car to a new vehicle owned by him/her, the NCB can be shifted, as there is no transfer of ownership.
    • Individuals can also retain the accrued NCB when they are transferring car insurance between providers. For this purpose, the car owner will have to get an NCB retention letter from the old insurance company. When the car owner produces the NCB retention letter to the new insurer, the NCB can be utilised to get a discount in the new car insurance premium. The NCB can hence be preserved for up to 3 years.

    The following documents are required to request for an NCB retention letter:

    • Policy cancellation request
    • Original copy of the policy and certificate of insurance (Form 51)
    • Notice of ownership transfer (Form 29), if applicable
    • Application for intimation and transfer of the car ownership (Form 30), if applicable
    • Copy of the RC book with the new owner’s name, if applicable
    • Proof that the car was delivered to the new owner, if applicable

    Like all subjects of mass interest in the financial domain, car insurance also has several myths associated with it. Understanding the fine print in car insurance policy documents is hard. What is harder is differentiating between right and wrong when it comes to auto insurance myths.

    Listed below are 10 of the most common myths surrounding car insurance, debunked for you:

    Myth 1 - My old car is not prone to theft.

    This is completely wrong. Several studies have revealed that car thieves target older vehicles as these are easier to steal. Older cars are less likely to have the latest safety features installed and hence, appear to be better targets for misdoers.

    Myth 2 - Getting car insurance is a very strenuous process.

    With the availability of online car insurance policies, purchasing auto insurance has become a stress-free activity. You can buy motor insurance directly from the website of the insurance company. Some insurers have introduced the Photo Quote option where you can share a photo of your old insurance papers and receive a renewal quote instantly. But the best option would be to buy car insurance from a neutral third-party financial website like BankBazaar.

    At third-party websites, you can compare policies from different insurers, check your eligibility, and buy a plan that suits you best. The entire process is hassle-free with limited paperwork, and the policy purchase happens in a matter of minutes.

    Myth 3 - If I transfer my car insurance to another insurance company, I will lose my NCB.

    The NCB is a reward offered by an insurance company to a policyholder if he/she does not raise any claims in a policy year. It is not attached to the policy itself. The policyholder can utilise the NCB to avail a premium discount at subsequent renewals of the policy. If he/she decides to switch insurance companies, the NCB will remain intact. The policyholder can procure an NCB retention letter from the old insurance company. This letter enables the NCB to be preserved for a maximum of 90 days. Within this time, the policyholder should buy a car insurance plan from the new insurance provider and attach the NCB to it.

    Myth 4 - Car insurance only offers protection against accidents.

    In addition to offering coverage for accidents, auto insurance also protects you against events that are not under your control. Natural calamities like earthquakes, lightning, landslides, and floods are offered coverage under car insurance. Man-made disasters such as thefts, riots, burglaries, damages incurred in transit, and terrorist activities are also covered.

    Myth 5 - The entire process of raising a claim and getting it approved is very inconsistent.

    No, it is not. In fact, the claim settlement process is quite straightforward. You will be required to log in to your insurer’s website and update a claim form. After you submit the form, you can track the progress of the application online. Within 24 hours of raising the claim, you will be contacted by the insurer. The next stage is the submission of supporting documents for the claim. If needed, you can request for assistance from your insurance company throughout the claim process. Insurers have dedicated customer service numbers where you can get clarification for all your queries.

    Myth 6 - My friend was driving my car at the time of an accident. This makes him responsible for the damages.

    The insured car that was involved in the accident is yours. This implies that you are solely responsible for the damages, irrespective of who was driving it. You will have to raise a claim with your insurer and see the claim settlement process through.

    Myth 7 - My personal belongings inside my insured car are covered under the plan.

    If your valuable personal property was inside your car when it was stolen, you are out of luck. Personal belongings stored in a car do not come under the ambit of the vehicle’s insurance.

    Myth 8 - The colour of the car has an impact on its insurance premium.

    There is a belief that red cars are more costly to insure. The reality is that car insurance companies do not take into consideration the body style or colour of the car when deciding on the insurance premium. Several other factors such as make and model of the vehicle impact the insurance premiums to a certain extent, but not the colour.

    Myth 9 - If my vehicle is stolen, then the insurer will reimburse an amount equivalent to the cost of a new car.

    That is not how car insurance works. Insurance claims work on the principle of indemnity. This implies that after you receive the claim payout, you will be in the same financial position that you were in before the damage occurred. In the case of a stolen car, the insurance company will calculate the cost of your vehicle after depreciation. From this value the excesses will be deducted. The remaining amount is offered to you as claim payout.

    Myth 10 - If my car meets with an accident, I have to pay for the damages from my own pocket and get it reimbursed from the insurance provider later.

    The advent of cashless car insurance has revolutionised the way claim payouts are made in the car insurance sector. If your policy allows you to avail cashless car insurance, you can get your vehicle repaired at a network garage without having to pay for it. The payment will be settled directly between the insurer and the network garage. This is an easy and hassle-free claim settlement facility when compared to the process of reimbursement claims.

    Most of the insurance frauds in India are committed by making false claims. However, there have been instances where the policies purchased were fake. This usually happens when customers buy insurance policies from agents who are not authorised to sell insurance.

    It would certainly be devastating to an individual to learn that the policy towards which he/she has been paying premiums was fake. More often than not, this realisation happens at the crucial time of raising a claim.

    Listed below are some ways in which you can tackle the frauds in auto insurance:

    • Get in touch with the insurance company - The simplest way in which you can check the validity of a policy is by contacting the insurance company. You can send an email or contact their customer care number for the same. Alternatively, you can walk into the insurer’s branch office and enquire about your policy.
    • Ask for a receipt when buying - When purchasing a car insurance policy, always request for a payment receipt. This is particularly important when you are paying by cash. You should also verify whether the details on the receipt are accurate.
    • Pay the insurance premium by cheque - Fraudulent activities can be mitigated to a certain extent if you refrain from paying premiums by cash. Paying for your insurance by cheque and addressing it to the right beneficiary will help you in the long run.
    • Check the NCB, IDV, and deductibles - Once you receive the policy document, you should check whether the No-Claim Bonus (NCB), Insured Declared Value (IDV), and deductibles are as per the verbal agreement.
    • Check the signature on the cover note/insurance proposal form - Always insist on signing the proposal form yourself. This also allows you to review the declared items in your policy. For instance, if your vehicle has a CNG kit installed, it should ideally be declared at the time of buying insurance. You can verify this when you attest the insurance proposal form yourself.
    • Beware of fraud when you are offered an unusually low premium - You may have been looking out for a cheap car insurance plan. But you should be wary of buying a policy that comes with an unusually low price tag.
    • QR code - IRDAI has mandated that car insurance policies should carry QR codes. If you install a QR code reading application on your mobile phone, you can verify the validity of a policy instantly.

    Buy insurance online - There are several neutral third-party financial websites that offer you the facility to compare insurance policies and arrive at one that best matches your needs. This facility is offered absolutely free of any charges. Make use of this facility as much as possible. BankBazaar is authorised to sell insurance and this takes place through a highly secure process. The entire purchase activity is quick and hassle-free as well.

    There are several factors that come into play when the insurer calculates your car insurance premium. Listed below are some of the most important parameters that determine your premium:

    1. Type of insurance cover - Car insurance can be broadly classified into two types, i.e., third-party liability insurance and comprehensive insurance. The former does not offer coverage to the owner of the vehicle or for damages incurred by the insured car. The insurance cover is provided only for damages caused to third-party property or life in an accident.
    2. Comprehensive car insurance offers wider coverage to the insured car. This cover includes damages incurred by the insured vehicle, in addition to third-party liability cover. The premium for comprehensive car insurance is higher, as it provides extra protection.

    3. Geographical location - The city where the vehicle was registered has a direct bearing on its insurance premium. Also, if the car is usually parked in a locality that is prone to thefts, the premium for its insurance would be higher. Insurance companies have classified locations as insurance zones based on the risk that the car is exposed to. In metros, the rate of accidents and vandalism is high. This indicates that car insurance will be more expensive there.
    4. Engine capacity - The third-party liability cover in car insurance is based on the vehicle’s engine capacity. So, this is influential in determining your auto insurance premium.
    5. Security features - If your car is equipped with the latest security devices, such as handle lock, gear lock, GPS tracking device, airbags, etc., the vehicle would be at a lower risk for theft. Insurance companies usually offer discounts in premium for cars that have security devices installed. These equipments should also be approved by the Automotive Research Association of India (ARAI).
    6. Car accessories - If you have got add-on accessories installed in your vehicle, your auto insurance premium may go up.
    7. Claim history - The premium that you would pay for your car insurance depends on whether you have raised a claim in the previous policy year. Policyholders with a history of claims would have to pay higher premiums.
    8. Riders - Car insurance riders can amplify the protection offered by insurance policies. The customer would, however, be required to pay additional premium to buy riders.
    9. Model of the vehicle - A customer will have to pay a higher premium for buying insurance for an expensive car. The registration date and year of manufacture of the vehicle also influences the premium amount. If the car has expensive spare parts, the premium will be higher as well.
    10. Purpose of the car - If the car is being used for commercial purposes, the policyholder will have to buy insurance suited for commercial vehicles. This will come at a higher premium.

    When buying auto insurance, it is important that you get the right policy for the protection of your car. You can amplify the coverage of your car insurance by adding riders to the base policy as well. Since car insurance is not a purchase that you make everyday, people are quite unfamiliar with the process. They usually do not know what questions to ask when buying insurance and how to get the best coverage at the most optimum price.

    Listed below are some of the most common mistakes that people make when buying an auto insurance policy:

    • Not buying enough coverage - It may be tempting to save some money by not purchasing a comprehensive car insurance plan. But this can prove to be a big mistake if you happen to get involved in an accident and are liable to pay a huge amount for the damages. To avoid such situations, it is better to get a substantial amount of insurance cover for your car. So, stay away from the ‘lowest price’ trap.
    • Not informing the insurance provider of customisations - In case you have opted for customisations on your vehicle, you should declare it at the time of insurance policy purchase. Even if you are thinking of allowing another person in your family to use the car, you should inform the insurer. Also, if there are any changes in the way the car is used, the insurer should be notified. Otherwise, you may be disappointed at the time of a claim.
    • Not comparing policies from different insurers - It is a good practice to compare insurance policies offered by different providers and check your eligibility. This way, you will be better equipped when opting for a plan.
    • Not reading the policy terms and conditions - When you buy a car insurance plan, it is important that you read through the policy documentation thoroughly. Keep track of what is included in the coverage and what is not.
    • Buying coverage that you do not need - The friendly insurance agent may coax you into buying car insurance riders that you probably would not benefit from. So, it is advisable that you do a basic level of research yourself before buying a plan and add-on covers.
    • Not looking at the reputation of the insurer - When buying car insurance, it is advisable to review the offerings from an insurance company and its claim settlement ratio. The customer service of the insurer you choose should also have a good reputation.
    • Not revealing the truth to your insurance provider - You should always provide accurate information to your insurance company. If you fudge the facts in an attempt to get a better rate, you may even be denied a policy. Worse still, the insurer may come to know about the inaccuracies at the time of a claim and reject your claim altogether.
    • Not updating your car insurance coverage after significant life changes - Certain changes in your life, such as a marriage or divorce could have an impact on your insurance needs. So, you should review your insurance coverage when you reach certain milestones and revise it, if needed.
    • Not buying bundle insurance for discounts - Some insurers offer discounts to customers who buy multiple insurance policies from the same company. So, if you are planning to buy auto insurance, assess whether you will be needing health and life insurance as well. You could benefit largely by buying all required policies from the same provider.

    An endorsement in car insurance is an addition or amendment to an existing policy to improve/limit its scope.

    • An insurance endorsement can be utilised to add, exclude, alter, or delete coverage under the plan.
    • The endorsement can be issued at the time of policy purchase, at mid-term or at policy renewal.
    • A car insurance endorsement remains in force till its expiry. It may be renewed under the same terms and conditions of the base policy as well.
    • If you get a car insurance endorsement, your premium is likely to change. On expansion of coverage, you will have to pay higher rates. Coverage restriction such as exclusions will give you lower rates.
    • Endorsements will be issued in the following circumstances:
      • When you have a life change, such as shift in car ownership, geographical location, etc.
      • When you are travelling using a rental car and would like to avail insurance for the rented vehicle.
      • When you have a shift in your budget.
      • When you add a CNG/LPG kit in your vehicle.
    • When an endorsement is made in your car insurance, you will receive a new page i.e., an endorsement certificate, in your policy that details the changes in the coverage. The original policy will not be altered.

    The No-Claim Bonus (NCB) is a significant benefit that a car owner can receive from his/her car insurance company. This is a proposition that bring down your auto insurance premium by upto 50%.

    If a car owner does not raise any claims in a policy year, he gets an NCB that amounts to a discount in premium The discount is offered at the time of policy renewal. The NCB increases each claim-free year according to the following table:

    All types of vehicles Percentage of discount provided on own-damage premium
    After 1 claim-free year 20%
    After 2 consecutive claim-free years 25%
    After 3 consecutive claim-free years 35%
    After 4 consecutive claim-free years 45%
    After 5 consecutive claim-free years 50%

    Consumables are goods used in cars that need to be replaced on a regular basis, as they wear out or get used up. This includes materials such as nuts and bolts, screws, brake oil, engine oil, fuel filter, ball bearings, oil filter, air conditioner gas, lubricants, washers, grease, etc.

    Consumables are not offered coverage under comprehensive car insurance policies. If you want coverage for consumables as well, you will have to buy a separate add-on plan that can be used to enhance the coverage of your base policy. You will have to pay an extra premium towards the car insurance consumables rider.

    For a consumables claim to be valid under the add-on policy, it should adhere to certain conditions, as indicated below:

    • The claim should be in alignment with the terms under the own-damage section of the comprehensive plan. So you should be familiar with the own-damage section of your policy document.
    • Another condition that needs to be met is that the repair to the car consumables should be undertaken within 3 days from the date of theft or loss.

    The consumables add-on policy is only offered to vehicles that are less than 5 years old. Cars that exceed this age limit are not eligible to avail this protection.

    It is not uncommon that customers get lured through strategic advertising campaigns and promises of lower rates from insurance companies. But before you stray off from your current insurer, you should take stock of what you already have in hand. You may then realise that the perks of staying with your current insurance company far outweighs the benefits offered by another.

    Advantages of car insurance loyalty:

    • Loyalty discounts - Loyalty discount, also referred to as longevity, persistency, or tenure discount, is usually offered in the form of a small discount in premium. However not all insurance companies offer loyalty discounts. Sometimes, higher discounts are offered to customers who have spent a longer time being insured with a company. Several insurance providers also offer premium rebates when customers switch to avail their services.
    • Accident forgiveness - Some insurers may offer you an accident forgiveness benefit. This is essentially a promise of not raising your renewal premium the first time you have a minor accident, provided that you remain claim-free for a significant amount of time preceding the mishap.
    • Leniency and good service - Some insurance providers may be more lenient when long-time customers are involved in road violations, even when they do not offer accident forgiveness programs. Other perks of being a long-time customer include:
      • If you are a little late on your premium payment, the insurer is more likely to reinstate your policy without levying any penalties.
      • Insurers are more likely to address your concerns and offer resolutions in a more efficient manner.

    Disadvantages of car insurance loyalty:

    Some insurance companies use a technique known as “price optimisation” to penalise loyal auto insurance customers. Long-time policyholders are charged higher premiums because the insurer believes that they are less likely to switch to a different insurance provider for a better price.

    In a nutshell, customers should look beyond discounts and loyalty rewards when opting for a suitable car insurance plan. Consumer reviews, customer service, cost of insurance, and the company’s financial stability are more important factors to consider when deciding to stay with an insurer.

    Paying for the damages after a road mishap can be frustrating. But the situation in which your car insurance company fails to honour the claim can be totally devastating. To avoid last minute surprises, it is important to read through your policy documentation and be aware of the nuances in the fine print.

    Listed below are some of the most common reasons car insurance companies reject claims:

    1. Car insurance policy in lapsed status - If your policy was in lapsed status at the time of the mishap, the insurer will reject the claim. Hence, it is important to keep your auto insurance policy in-force without a gap of even a single day.
    2. Delay in intimating the insurer - Car insurance companies mandate that all accidents be reported within 24-48 hours of occurrence. In case you forget to inform the insurer within this timeframe or use your damaged car after the accident, your claim is likely to be declined.
    3. Driving without a valid license - The driver of any vehicle on the road should carry a valid driving license - this is the law and should be adhered to strictly. If your car was involved in an accident and you fail to produce a driving license at that time, your insurance claim will not stand valid.
    4. Driving while you are drunk - Drunk driving is a serious traffic offense that can be penalised heavily. No claim can be raised if your were under the influence of drugs or alcohol when the accident took place.
    5. Using the car beyond limitations - If your car insurance company learns that the accident occurred while you were using the car inappropriately beyond its limits, your auto insurance claim will be declined.
    6. Undertaking repairs of the car without informing the insurer - This is a very crucial requirement that is often overlooked by car owners. If your insured vehicle is involved in an accident, you should inform the insurance company before proceeding for repairs. The insurer will send a surveyor to assess the damages incurred by the vehicle before it is taken to a garage. Failure to get the car surveyed can result in a claim rejection.
    7. Car insurance not in your name - Car insurance companies mandate that the insurance policy and the registration certificate of the vehicle should be in the name of the car owner. Any mismatches in the information will result in the refusal of claim. So if you are buying a used car, ensure that the registration certificate and car insurance are transferred to your name.
    8. Customisations to the car that were not included in the policy - If you have installed an accessory in the car that was not declared in the insurance policy, the insurance company may reject your claim. Claim refusal is possible even if the damage incurred by the car was not related to the installation.
    9. Usage of the car beyond the geographical limit in the policy - Automobile insurers have segregated geographical zones for insurance. The metros such as Mumbai, Delhi, Chennai, and Kolkata are classified as Zone A. The rest of the country falls under Zone B. If the insured car was involved in an accident outside the zone specified in the insurance policy, there is a good chance that the claim for damages will be rejected.
    10. Normal wear and tear - The normal wear and tear of a vehicle is not covered under a comprehensive car insurance policy. So, even if your claim was honoured by the insurer, you may not receive the full claim amount. The portion of the claim that corresponds to depreciation (due to periodic wear and tear) will have to be borne by you.
    11. Consequential damages - If your car has suffered from a consequential damage, your insurer will not offer coverage for it.
    12. Certificates for commercial vehicle - If a commercial vehicle’s driver does not have valid road permit and fitness certificate issued by the RTO as on the date of the accident, then the claim can be rejected.
    13. Misrepresentation of events - If you do not represent the facts accurately at the time of raising the claim or if there is a fraudulent document submitted, the claim will be rejected.

    A deductible is the amount of money that the insured car owner pays in the event of a claim just before the insurance plan kicks in and starts paying the rest. Consider a scenario where the damages on your car would cost you Rs.3,000 for repair.

    • If your car insurance policy states that the total amount you will have to bear as deductible is Rs.2,500, then the insurer will only provide you Rs.500 as claim payout.
    • In case the expenses for the repair come up to Rs.2,500, you will have to bear the entire cost.

    What is the necessity of a deductible? A deductible protects the insurance provider against small and unnecessary claims. It also ensures that car owners are more careful while driving, as they will be required to bear a pre-defined amount of the claim value. Additionally, opting for a large amount of voluntary deductible ensures that your premium is reduced by a significant amount.

    Car insurance deductibles can be classified into two types:

    1. Compulsory deductible/compulsory excess - This is a fixed amount decided by the insurance company, in accordance to the IRDAI guidelines. The compulsory deductible under a car insurance policy depends upon the engine capacity of the vehicle. The India Motor Tariff determines the standard rate for compulsory deductible as follows:
    2. Private cars up to 1,500 cc Rs.1,000
      Private cars above 1,500 cc Rs.2,000
      Motorised two-wheelers Rs.100

      Older cars bear a higher risk of claim. So, the insurer may charge a higher compulsory deductible if the car is older. The compulsory deductible in car insurance does not have an impact on the premium.

    3. Voluntary deductible/voluntary excess - The voluntary deductible is an optional amount chosen by the policyholder, wherein he/she agrees to pay a part of the claim amount before the insurer pays the rest. The policyholder chooses this amount based on his/her affordability and the risks on the vehicle.
    4. The voluntary deductible is inversely proportional to the premium that you pay towards car insurance. This implies that if you choose a high voluntary deductible value at the time of policy inception, you will have to pay a lower premium towards the policy.

      To summarise, the key differences between compulsory and voluntary deductibles are as shown in the table below:

      Compulsory deductible Voluntary deductible
      No flexibility, as it is chosen by the insurance provider in line with the IRDAI regulations It offers flexibility, as the policyholder can decide on this amount based on his/her needs
      Does not affect the premium High voluntary deductible implies that the premium will be lower
      Does not affect the savings of the policyholder Opting for voluntary deductibles has a long-term effect on the car insurance premium and hence, the savings of the policyholder
      If the policyholder has not opted for voluntary deductibles, in the event of a claim, he/she only pays the compulsory deductible amount Consider a scenario where the policyholder opts for voluntary deductibles. During a claim, he/she has to pay both the compulsory deductible and voluntary deductible amounts

      So when should you opt for voluntary deductibles? If you are an attentive and experienced driver, then you will benefit greatly from the voluntary deductibles option. This is due to the fact that voluntary deductibles help you save considerably on your car insurance premium, and the chances of you getting involved in an accident are less. However, you should select the deductible threshold judiciously. Otherwise, you may struggle to pay at the time of a claim.

    Depreciation is the reduction in value of your car with time. It can be due to the wear and tear that it experiences over the course. At the time of a claim, the insurance company calculates the market value of your vehicle as its Insured Declared Value (IDV).

    IDV = (Amount you initially paid for the car at the time of purchase) - (Its value of depreciation) Considering that cars depreciate at a quick rate in the initial years, if you incur a total loss to your vehicle, in spite of the claim payout,you will lose a good amount of money as depreciation.

    • RTI is add-on insurance that covers the gap between the cost price(invoice value) of your vehicle and its IDV.
    • If your car is protected with this rider, you stand to receive the entire amount that you lost in the mishap, i.e., the on-road cost price of your vehicle.
    • Usually, the cost of the RTI cover is 10% more than that of the comprehensive plan to which it is attached.
    • RTI cover is not an option when you are intending to claim for small repairs to your car. It helps you retrieve the financial loss when your car is damaged beyond repair or is stolen. So, an individual who stays in an area where car-theft is common or someone who does not park his/her car in a secure place can opt for this cover. People who travel long distances frequently can also take this coverage.
    • The RTI cover is not offered to cars that are more than 3 years old.

    Not many car owners have a complete understanding of the third-party liability cover for which they have been paying premiums for a long time. Here we take a look at the coverage under third-party liability insurance and the claim process.

    1. Coverage - In India, third-party liability insurance is mandated by the Motor Vehicles Act. Hence, a standalone liability policy is also referred to as ‘Act only’ insurance. Such a policy does not offer coverage for the insured car or its owner. It offers protection to the car owner for damages caused to the life or property of a third-party, while using the insured vehicle.
    2. So, if you are involved in an accident while driving your insured car, the third-party can raise a claim with your insurer. There is no limit on the liability for death or injury. However, the liability for damage to third-party property is a maximum of Rs.7.5 lakh. If the damages incurred are beyond this compensation amount, the balance will be borne by you.

      1. If you are the third party hit by another vehicle, then you can raise a claim for damages from the insurer of the other person.
      2. In case you have been injured, you can claim for medical expenses. You can also claim for the loss of earnings if you have been unemployed due to the accident.
      3. If a life was lost in the mishap, the claim can include the charges for medical treatment before death.
      4. In case there was damage to property, i.e., your car, you would have to submit the original bills from an authorised car service centre, the car inspection report, and the surveyor’s report to quantify the loss.
      5. If your claim is approved, you will be offered compensation by the other person’s insurance company.
    3. Claim process - Consider a scenario wherein you have been involved in an accident and are looking to raise a claim under the third-party liability insurance of the other person. The claim process under third-party liability insurance is not easy.
      1. The process starts off by filing an FIR with the police and getting a charge sheet.
      2. After this, you will have to go to an auto insurance claims lawyer. A case will have to be filed in the Motor Accident Claims Tribunal. You will have to approach the tribunal with jurisdiction in the area of the accident. Alternatively, you can approach the tribunal in the area where the defendant resides.
      3. The court hears both sides of the argument and examines the evidence furnished before deciding on the liability.
      4. If the decision in your favour, you will receive compensation for the loss.
      5. Subrogation is the process by which the insurance company of one party pays for the damages incurred by the other party. This amount is then claimed as reimbursement from the insurer of the latter. This is possible only with comprehensive car insurance, and the insurer will decide whether to proceed with subrogation or not.

      The claim process gets complicated based on the coverage of both parties. Let us take an example in which individual X has suffered damages to his car by individual Y’s car in an accident. Listed below are different permutations of the coverage situation and the outcome:

      • When X has only third-party liability insurance

      Since the damages are incurred to X’s car and he doesn’t have comprehensive coverage, he can claim for compensation under the third-party liability insurance of Y’s car. Also, X should establish in court that Y was at fault in the accident. In case the court decides in X’s favour, he will not receive the complete amount. The claim payout will be the liability amount that is decided by the court.

      • When X has comprehensive car insurance

      X can choose any of the following options:

      • He can raise a claim under the ‘own damage’ section of his car insurance policy. Although this is the easiest method, it could result in the loss of the accrued NCB.
      • He can file a case in the Motor Accident Claims Tribunal and fight a case in court on his own to get compensation under Y’s car insurance policy.
      • He can request his insurance provider to subrogate the case and fight in court on his behalf.
      • When X and Y have comprehensive car insurance

      A case for third-party insurance claim will only be subrogated if both parties have comprehensive car insurance and a death or disability was involved in the mishap. These claims will take very long to get settled as well. If the damages incurred by X is limited to his property, he should try to settle the claim out of court. In case this is not followed, he should ensure that the FIR is updated with an accurate description of the incident and keep original records of the expenses incurred to justify the loss.

    Policyholders usually consider claims to be a natural part of the outcome of purchasing a policy. You are right in expecting the insurer to stand by the terms and conditions mentioned in the policy documentation. However, you should be aware of the fact that the claim settlement process following an accident can be quite daunting. You should know about the issues that may crop up along the way, so that you are better equipped to handle them effectively.

    Listed below are ten of the most common problems with auto insurance claims, for your reference:

    1. Failure to inform the insurer immediately - The longer it takes for you to intimate your insurance company of the accident, the tougher it gets for the claim to be approved. Following an accident, you should decide quickly whether you want to raise a claim or not.
    2. Not providing all information - It is crucial that you document all information related to the accident. You may need to capture photos and speak to witnesses for the same. It is also important to inform the police of the mishap and file an FIR.
    3. Delay in determining fault - It is natural for each driver to blame the other for the accident. Even if an individual accepts the fault at the scene of the accident, he/she may change his stand after getting into talks with his/her insurer. You should, hence, be very cautious when a third-party is involved in the accident.
    4. Not knowing how to proceed - It is important that you are aware of the car insurance claim process so that it goes smoothly and the payout is quicker. If you take some extra time at each step, you will be able to ensure that everything is in order. This practice can eventually save you a lot of time and effort.
    5. Failure to purchase sufficient coverage - At the time of policy purchase, it is advisable to buy sufficient cover. Otherwise, you may be disappointed at the time of a claim.
    6. Not revealing all details to the insurer - Some customers do not reveal all relevant details at the time of car insurance purchase. However, this can prove to be disadvantageous in the long run. If you are in a situation where you have to raise a claim, the insurer may identify that you had concealed information and penalise you for the same. This can even result in the rejection of your claim.
    7. Selecting the garage - All insurers allow you to pick a garage of your choice where you can get your vehicle repaired. Most insurers recommend that you get the repair work done at network garages. This is because the insurance company will already have good relations with the service centres that are in its network. This way, it will be able to negotiate on better deals for the repair work, and even expedite the process.
    8. Ambiguous terms and conditions in the policy - Some insurance companies have ambiguous terms and conditions in the policy documentation. So, it is important that you read through the policy and understand the coverage under it. In case you require any clarification, you can approach the insurer for explanation. Hence, you will be better equipped at the time of a claim.
    9. Low offers - Insurance providers have claim adjustors who try to keep the cost to the company at a minimum. So, the first offer they make may be a very low value. Before you submit the claim, you should personally make an assessment of the amount you are willing to settle for. Do not agree to the first offer from the insurer unless it is in line with your expectations.

    Delay in payment - Most of time, the claimant waits for the payment endlessly, without enquiring about the status of the case. If you experience a delay in receiving the claim payout, you should approach the insurer and check the reason for the same. The insurance company may be waiting for some documents from you. So, it is alright to ask questions and chase it up.

    If you have been involved in an accident, coping with the aftermath can be very difficult. This is particularly painful when you have suffered injuries or there are damages to your car. In any case, it is crucial to negotiate with your car insurance company in an effective manner so that you get what you deserve.

    It should be noted that auto insurance providers may try to avoid paying you the entire claim amount, as they would always be looking to reduce costs. If, at any point, you feel that the negotiations are overwhelming, you can always seek the assistance of an experienced auto insurance lawyer. He/she will be able to help you navigate the negotiation and claim settlement process easily.

    Here are some tips to help you negotiate with your insurer:

    • Initiate the claim immediately after the accident - You should get in touch with the insurance company soon after the accident. This way, you will be able to recall all details about the mishap and report property damages or injuries accurately.
    • Record the incident elaborately - It is useful to keep a file with records on the accident, arranged in a chronological manner. The file should also have a police report, records of visits to the hospital, car repair bills, and anything else that is associated with the accident. These documents will be very useful during the negotiations, and keeping them handy will expedite the claim settlement.
    • Pre-calculate a fair settlement amount - Before you raise the claim, you should assess the damages that you have suffered and determine an amount that you think would be the worth of your claim. Remember to consider the following costs:
      • The medical expenses borne by you.
      • The income loss you suffered due to your injuries.
      • If you have been permanently disabled or will require medical care for an extended duration, take that into account as well.
      • Try to quantify the pain and suffering you went through after the accident.
      • The expenses incurred in repair or replacement of your car/car parts.
      • Cost of damage to other property in the accident.

    Based on this information, you should decide on a minimum figure that you would settle for. In this aspect again, a car insurance attorney can be of help.

    • Send a demand letter to the insurer - After you have identified what your claim is worth, you should send a demand letter to the insurance provider. Describe the accident, the injuries you suffered, the medical treatment you have availed, your ongoing health issues, damages to your car, and any other losses that resulted from the accident. Then you should inform the insurer of the amount you are demanding.

    Since the insurance company is likely to settle on an amount that is 25%-75% lower than what you have demanded, you should take that into account when putting forth the claim. It is important that you have all relevant documentation with which you can support your claim. Any lack of evidence may jeopardise your chances of getting what you deserve.

    • Refrain from accepting the insurer’s first offer - When the insurance adjuster offers you an amount for the first time, it will most probably be too low. This may be a tactic that the company uses to see if the claimant is aware of the actual worth of the claim. You can ask the insurance adjuster to justify his low offer with specific reasons. Respond to the points raised by him/her in a reply letter and explain why you cannot agree to the offer. At this point, you should wait for the insurer to increase the offer. Later on, you may counter the offer from the insurance company with an amount that both parties can agree to.
    • Stress on the points in your favour - When you are communicating with the insurance company, you should emphasize on your strong points. If you have been injured and will be suffering for a long duration, discuss how this is going to affect your finances and quality of life in the long run. If you have missed employment due to the accident, reinforce on the wages you have lost and how this has impacted your family. Ensure that the insurance company understands that you need fair compensation for your losses and injuries.
    • Get all agreements in writing - You should note all your conversations with the insurer diligently. You can request for all settlement offers to be provided in writing. Ensure that all stakeholders are in agreement with a decision as well.

    Hire a lawyer, if necessary - If you are unable to arrive at a fair agreement even after negotiations, you may need to hire an attorney. An experienced professional will be able to evaluate your situation and assist you accordingly.

    The number of car insurance claims you file directly impacts your premium. So, the greater the number of claims you have filed, the higher are your chances of getting a rate hike. Some insurers may also not renew policies under which too many claims have been raised.

    But raising a motor insurance claim does not always imply that you will have to bear the burden of increased premium the following year. There are several yardsticks that car insurance companies use to determine whether there will be a premium hike following a claim:

    • The seriousness of the accident - If your car has been damaged to a large extent from the mishap, then the chances of a premium hike at the next renewal are high. The insurer will be making a larger payout for the damages, and hence, it deems it necessary to increase the premium.
    • The driver at fault - If the accident occurred due to your negligence, then it is highly likely that your car insurance premium for the next year will rise. In case the other driver was at fault, you may not see a hike in premium, as well.
    • Value to the company - Car insurance companies consider safe drivers to be cheaper to cover.
      • If you have been driving safe for a long time, you may not see such a dramatic hike in your renewal premium. The same applies to you if you have been associated with the insurer for an extended period of time.
      • If you are someone with a poor driving record, then the insurer will most likely increase your premium.
      • Some insurance companies offer accident forgiveness if a customer maintains good driving history. Under this program, the driver is not penalised with rate hikes for his/her first accident.
    • Auto theft - If your car has been stolen for which you raise a claim, the insurer will make the claim payout. Following this, your insurance premium for the following year is likely to increase, as the insurer has provided you a huge payout as compensation. After an incident like this, your insurance company may also classify you as a high risk individual to cover. This implies that all your future premiums will be higher.

    In addition to the above, the possibility of an insurer raising the premium rate also depends on its own policies and regulations. Irrespective of the situation, if you minimise the number of claims, you will be protected from increase in insurance rates. A thumb rule to follow would be to file claims only if you suffer from a catastrophic loss. You should refrain from raising claims for small damages. Apart from protecting your premium from a spike, it will also preserve your hard-earned NCB.

    It is possible to cancel your auto insurance renewal in a hassle-free manner. Since car insurance is mandated by law, the insurer will have to be shown that a new policy has been bought to replace the current policy.

    • All insurance providers offer you a minimum free-look period, also referred to as the cooling-off period, that extends up to 14 days. During this time, you can review the terms and conditions in the policy documentation to see if everything in it is as per the agreement.
    • In case you are dissatisfied with anything in the policy, you can return the same back to the insurer before the free-look period expires.
    • You will have to specify the reasons for the policy cancellation request and also return the original policy document to the insurer.
    • The insurance company examines the case, and if found valid, will cancel the policy within a week.
    • If you return the policy after the cooling-off period, the insurer will charge you a certain amount for the cancellation. This amount depends on the number of months that have passed from the start of coverage.
    • Most insurers do not accept policy cancellation requests after the completion of 8 months.

    Insured Declared Value (IDV) is essentially the current market value of your car. It represents the highest amount payable by the insurance company if your car was totally damaged or stolen during the policy term. Hence, it also translates into the maximum amount that you can claim under your motor insurance.

    The insurance company uses the following details to arrive at the IDV:

    • The registration details of the car
    • The city where the car was registered
    • The first date of purchase or registration
    • The current registration type, i.e., private or company-owned
    • The make, model, and manufacturer
    • The engine capacity
    • The ex-showroom price of the car

    IDV and premium:

    The own-damage part of the car insurance premium you are liable to pay is directly proportional to the vehicle’s Insured Declared Value. So as your car ages, the IDV reduces. This leads to lower premiums as well. The schedule of depreciation of a car is as detailed in the table below:

    Age of the car Depreciation
    Till the end of the 1st year 5% depreciation is deducted. The vehicle is insured at 95% of the ex-showroom price.
    At the 2nd year renewal 20% depreciation is deducted. The vehicle is insured at 80% of the ex-showroom price.
    At the 3rd year renewal 30% depreciation is deducted. The vehicle is insured at 70% of the ex-showroom price.
    At the 4th year renewal 40% depreciation is deducted. The vehicle is insured at 60% of the ex-showroom price.
    At the 5th year renewal 50% depreciation is deducted. The vehicle is insured at 50% of the ex-showroom price.
    6th year onwards 10% to 15% depreciation is deducted on the IDV of the previous year. This continues each subsequent year.

    Points to note while declaring the IDV of your car:

    • As the owner of the car, you should be aware of its IDV.
    • You should not understate the IDV in order to get a lower premium on your car insurance. If the IDV is lower, your insurance coverage will be lesser as well.
    • It is also not advisable to overstate the IDV. A higher IDV does not imply that you will receive a higher price when selling the car or raising a claim. Although the claim amount depends on the IDV, it is also regulated by the type of loss.

    If you are involved in an accident while driving your insured car, in all probability, you would be in a state of disbelief. During this trying time, you should refrain from getting worked up and do the following to the best of your abilities:

    • Check if there have been injuries - Get help in calling the ambulance and the police. You should also file an FIR, which is a mandatory document if a third-party insurance claim is to be processed.
    • Take note of the details of the other car - You should record the registration details, make, model, etc. of the other vehicle involved in the accident. If the other driver was at fault for the accident, you can also get the insurance details of that vehicle.
    • Details of witnesses should be recorded - Get the names, contact numbers, and addresses of all the witnesses present at the spot of the accident. This may be useful later on in the claim settlement process.
    • Record all details pertaining to the accident scene - You can click pictures of the accident scene using your mobile phone. Photos of the damaged vehicles, other property, and stakeholders will be very useful later on in the claim process.
    • Inform the insurer of the mishap - You should call your insurance provider and inform about the accident.
    • Stay clear of making decisive statements - You should refrain from making statements to the insurance company or the police, if you are not sure of what you are saying. Everything that you say will be recorded and may even be used against you later on. In line with this, you should not accept the fault for the accident if you are unclear about it. Another important thing to note is that you should not lose your temper or get into a verbal argument with the other party. This may result in the claim process evolving into something more complicated than it already is.
    • Get the vehicle towed to a garage - Your insurer will have tie-ups with several network garages where you can get your vehicle repaired post an accident. It is particularly useful to select a network garage, as it offers you quality service and has a tie-up with the insurer. This way, you will not be required to pay for the repairs up front. The finances will be settled directly between the insurer and the network garage. Alternatively, you can choose to get your car repaired at a service centre of your choice. In this scenario, you will have to pay for the repairs and then raise a reimbursement claim later on.
    • File your claim with the insurance company - The following documents will be required at the time of filing the claim:
      • A copy of the car’s insurance policy
      • FIR
      • Updated claim form
      • Copy of the car’s registration certificate
      • Copy of your driving license
      • The estimate of repairs
      • Medical bills
      • The original ‘No trace report’ from the police (only in the case of car thefts)
      • Attested RTO transfer papers (only in the case of car thefts)
    • Claim settlement - The insurance company examines your documents and determines the validity of the claim. The payout is offered following this.

    Consider a scenario in which you were involved in an accident that did not cause significant damages to your car. Would you use your right to claim under auto insurance? You should be aware of the fact that filing a claim would impact the No Claim Bonus (NCB) that you have accrued over the years. It may also have a negative effect on your renewal premiums.

    Yes, deciding as to when you should claim insurance and when you shouldn’t is tricky. But here, we provide you all the details you need to know to make a wise decision at the time of a mishap.

    Things to consider before filing a claim

    Industry experts are of the opinion that there are no hard and fast rules for raising a claim. But it is important to do some calculations yourself when deciding to claim insurance.

    • Insurance is purely based on the concept of risk. So, if you fall in the high-risk category, you will be required to pay a higher premium. A poor claim history is one of the most important factors that influence premium rates. Frequent claims also have a direct adverse impact on your NCB (and the discount it translates into). So be very careful before filing a claim.
    • Another factor you should consider is the deductible amount, i.e., the compulsory and voluntary excesses. At the time of a claim, you will be required to pay the compulsory and voluntary deductibles from your own pocket. After this payment is made, the auto insurance kicks in and pays the remaining claim amount. So, assess the quantum of loss and identify whether it is worth raising the claim.

    It is advisable to not raise claims for small damages to your insured car. This is due to several reasons:

    • If you file car insurance claims frequently, your claim history will be negatively impacted. In such a scenario, insurers can hike premiums at renewal. Some insurance companies even deny coverage for such risky drivers, resulting in a rejection of your request for car insurance renewal.
    • As mentioned above, check whether the total amount corresponding to deductibles is close to or less than the claim value. If so, you stand to lose more than you would gain when you file a claim. In this case, you should refrain from claiming insurance and pay for the damage repair yourself.

    In a nutshell, you should follow this rule of thumb - only make claims in the event of a huge loss. There is no point in raising small claims for damages such as a scratch or a small dent on the bumper.

    You may also contact your insurance advisor for guidance before filing a claim.

    1. Is owning a car insurance policy mandatory?

    Yes. According to prevalent motor vehicles laws in India, every vehicle plying on Indian roads must be insured.

    2. Is it possible to purchase car insurance online?

    Yes. Infact, the option to buy car insurance online is often highlighted by most compliant insurers as a surefire means to stay covered 24x7 and never run out of the applicable coverage.

    3. How do insurers calculate the applicable car insurance premiums?

    When deciding upon the applicable premium amount, many factors are at play. Different companies charge different rates, based on differing criterias, when it comes to own damage cover. Also, deductibles and the IDV factor play a part when the premium amounts are decided upon. Shop around, and find a policy that best matches your requirements- ideally, avoiding a scenario wherein the premium might be less but the deductibles are high and the coverage and IDV are low.

    4. What is ‘No Claim Bonus’?

    No Claim Bonus, or NCB in car insurance is the benefit awarded to the insured for not making any claims during the previous policy period. Currently, this bonus ranges from 20% on the Own Damage premium upto a maximum of 50%. Note that this doesn’t apply on liability premium.

    5. Is service tax applicable on the premium payments?

    Yes. The applicable service tax is in line with the regulations set by the Insurance Regulatory and Development Authority of India (IRDA).

    6. What documents must always be available in the vehicle for ready inspection?

    1. Copy of the Driving Licence of the individual driving the vehicle.
    2. Insurance Certificate.
    3. Copy of the vehicle’s Registration Certificate.
    4. ‘Pollution Under Control’ Certificate.

    7. What must I do if I lose my insurance policy?

    Getting a duplicate copy of your insurance policy is very easy. You could either approach your insurer’s office for the same or, if you have procured the car insurance online, print-out the soft-copy of the policy that was forwarded to you.

    8. What is IDV?

    The Insured’s Declared Value (IDV) refers to the current market value of your vehicle as fixed by your car insurance company. The IDV comes in handy when claims are raised in cases of theft or total loss of the vehicle. Your insurer arrives at your vehicle’s IDV by pitting the manufacturer’s listed selling price against the commonly adhered to depreciation percentage.

    9. What is Zero Depreciation Cover?

    Commonly offered as an Add-On, the Zero Depreciation Cover offers full settlement on your claim without the usual deduction affected for depreciation (or periodic reduction in value of the vehicle/automotive parts due to natural wear and tear caused due to normal usage). Deduction due to depreciation is a common factor with the normal car insurance.

    10. Why car insurance premiums differ from company to company?

    Car insurance premium rates differ from one company to another based on their own internal protocols. The company calculates your premium based on these factors- a) The risk posed by you to the insurer, b) the insurer’s operational costs, c) the estimated money that the insurer is likely to pay as settlement through the year.

    11. What are the factors to consider before buying a car insurance policy?

    1. Brand and track record of the insurer.
    2. Coverage and the fine print.
    3. Customer service- both offline and online.
    4. Customization, perks and discounts.
    5. The clincher- Price!!

    12. How to calculate car insurance premiums?

    The simplest way to calculate your car insurance premiums is with a good Car Insurance Premium Calculator. While most lending banks offer this facility on their websites, competent third party calculators are also readily available.

    13. What is covered under third party motor insurance?

    Third party motor insurance doesn’t cover you and your vehicle. Its major purpose is to protect you against any liability that could arise from your vehicle’s involvement in an accident that led to the loss, damage, injury or death of third party property or individuals. Summing up, the following is covered-

    1. Damage to third party property.
    2. Injury or death of a third party (individual(s)).
    3. Accidental death and/or permanent total disability of the insured vehicle’s owner/driver.

    14. I have shifted to a new place. Is it necessary to update my registration address on my car insurance? How do I do it?

    Of course it is necessary to update your change of address at RTO as well as inform your motor insurer. You can get in touch with your insurance provider via their toll free number, email or in person. You can do this online as well. Just go to the official website and enter the details in the required columns.

    15. How do I go about transferring my car insurance from one firm to another?

    After informing your current car insurance provider, please submit the documents mentioned below.

    1. Transfer of Policy (Sale of Vehicle)
    2. New RC duplicate copy /form 29-30
    3. Old policy document
    4. NOC from the last insured
    5. Transfer Charge - INR 50
    6. Duly filled new application form, collected from the company.
    7. Inspection of the car

    16. I am eligible for a No Claims Bonus (NCB). But I earned it when I went abroad. Can I still avail it?

    Being a safe driver, you certainly deserve a reward. But when it comes to earning it abroad, there are some slight variations to the eligibility. An insurance user can be granted a No Claims Bonus (NCB) on a new car insurance plan taken out in india as per the eligibility earned overseas. But this is applicable only if the scheme is taken out in india within three years of expiration of the international car insurance plan, depending on applicable provisions of NCB as per these rules and regulations.

    17. Can I get medical cover for bodily harm or demise of the passenger(s) commuted in my car? Should I buy separate cover for that?

    This is exactly why third party cover is mandatory for all car owners. Car insurance is there to safeguard you when the unforeseen occurs. But when your own actions on the road cause a mishap, this cover becomes even more crucial. And yes, medical expenses are also covered in the third party car insurance, mandatory for all car owners.

    18. My car insurance policy application was rejected. What do I do?

    There are several insurance providers in India. You can compare various insurance policies online and apply for an insurance policy from a different provider. Third-party insurance plans are mandate for all vehicles in India. Therefore, you can purchase a third-party insurance and not have to worry about rejection.

    19. How does car insurance excess work?

    When you make an insurance claim, you will have to pay certain amount of money called the excess if the accident was caused by you. You will have a compulsory excess and a voluntary excess that will combined together to form your car insurance excess. Compulsory excess is the amount you have to pay when making a claim and voluntary excess is the amount you volunteer to pay towards the repair costs.

    20. How is car insurance cost calculated in India?

    The IDV and NCB is taken into account while calculating car insurance costs in India along with other discounts and offers.

    21. Do car insurance premiums increase after an accident claim?

    Yes, your car insurance premium is bound to rise after an accident claim. Even a single auto insurance claim will result in an increase in your premium for the following year.

    22. How does car insurance payments work?

    You have to pay a premium to keep your policy active. The company will send you a bill with due date and amount. You will be charged a service fee for the bill. You can go paperless to avoid the service charge. If you can’t make full premium payments then you can opt for monthly, quarterly or semi-annual payment modes. Some companies offer grace period to pay your premium. If the premium is not paid within the grace period then your policy will lapse.

    23. How are car insurance claims paid?

    An insurance adjuster will assess the damage of your car and estimate of the repairs will be submitted to the insurance company. In the case of a cashless garage, the company will pay the garage directly. Otherwise, the claim settlement amount will be mailed to you in the form of a cheque.

    24. How are car insurance rates calculated?

    Car insurance rates are determined based on data such as your age, gender, marital status, driving experience, driving history, geographical location, claims, mileage, and credit score.

    25. How does car insurance work after an accident?

    If you aren’t seriously injured, make note of the details of the accident. Seek medical help in the case of physical injuries to your body, co-passenger or third-party. File a police report. Contact your insurance provider, register a claim online or at the branch with a duly-filled claim form and the necessary documents to support your claim. The company will send an insurance adjuster to assess the damage and come up with an estimate of the repairs. After which, the company will follow up with the claim settlement which includes the excess you have to pay. The claim amount will be sent to you in the form of a cheque or paid to the garage directly in the case of cashless garage facility.

    26. How do car insurance companies make money?

    Insurance companies make money via strategic investment and risk management. The premiums paid by the policyholders are invested by the company in equity and money market instruments. Not every policyholder makes a claim, therefore it is a profit for the company if it doesn’t have to settle any claims.

    27. How to make car insurance claims?

    Contact your insurance provider, register a claim online or at the branch with a duly-filled claim form and necessary documents to support your claim. The company will follow up with the claim settlement which includes the excess you have to pay to obtain the claim.

    28 How do car insurance deductibles work?

    Deductibles is the amount of money you agree to pay in the case of a loss or damage. For example: If your proposed deductibles is Rs.5,000 and the cost of repairs is Rs.8,000. You will have to pay Rs.5,000 and the insurance company will pay the remaining Rs.3,000. Higher the deductibles, lower the premium.

    29. Are car insurance premiums going up?

    The IRDAI has proposed up to 50% hike in premium rates for car insurance from April 1st, 2017.

    30. Are car insurance claims public record?

    Your new insurance provider can obtain your insurance claim records from your previous insurance provider.

    31. Are car insurance claims taxable?

    As per Income Tax Act, 1961, car insurance claims are not taxable if the claim amount is obtained for damages caused due to riot, theft, floods, earthquakes, accidental fire or road accidents.

    32. Are car insurance payments tax deductible?

    Only if the car is used for business purpose will the car insurance premiums paid by you be tax deductible.

    33. Where do I get car insurance quotes?

    Car insurance quotes can be obtained online through the insurance company website.

    34. Where to check car insurance policies?

    You can check and compare car insurance policies on third-party websites like or the official websites of the insurance companies.

    35. Where is car insurance mandatory?

    As per the Motor Vehicle Act, 1988, a third-party insurance is mandatory for all running vehicles on Indian roads.

    36. What is an accident forgiveness option?

    After an at-fault accident, the accident forgiveness option ensures there is no increase in your insurance rate.

    37. Which car insurance companies are the best?

    ICICI Lombard, Bajaj Allianz, Reliance Car Insurance, Tata AIG, and Bharti AXA are some of the top car insurance providers in India.

    38. When does a car insurance policy expire?

    If your car insurance premium is not paid within the due date or provided grace period then your insurance policy will lapse. It’s advisable to renew your car insurance policy by making premium payments on time every year.

    39. Why do car insurance premiums increase every year?

    Car insurance costs rises every year depending on the company costs in policy distribution, loss in investment, fuel prices, etc. Your insurance premium can go up depending on the age and value of your car, your driving history, and the claims made.

    40. What is the PUC Certificate validity for new cars in India?

    For old cars, i.e., the ones that were bought on or before 31 March 2010, the Pollution Under Control (PUC) Certificate should be renewed on a quarterly basis. The validity of the PUC Certificate for new cars is 1 year. Vehicles that were bought on or after 1 April 2010 are considered to be new cars under this classification.

    41. How many times can car insurance be claimed in a year?

    As long as a car insurance policy is in force, there is no restriction on the number of claims that can be raised in a year. However, the number of claims allowed under add-on covers like NCB protect, zero depreciation, etc. are limited. You can find more details on these limits in the policy documentation.

    Must Read:

    Calculate your car insurance premium easily

    Your car is one of the most expensive purchases you would make in life. So, it is prudent to protect it with adequate insurance coverage. Apart from that, the Motor Vehicles Act, 1988, makes it mandatory for all vehicles in India to be equipped with a minimum of third-party liability insurance.

    The cost of car insurance largely depends on the IDV of the vehicle, its model and age, the cubic capacity of the engine, and the geographical zone in which the car was registered. Almost all car insurance companies have an online premium calculator using which you can identify the amount of premium that you will have to pay towards a motor insurance policy. For premium calculation, you have to provide details such as the name of the car manufacturer, the model number, car sub-type, fuel type, date of registration, year of manufacture, etc. Once you submit these details, you will get an instant quote for the insurance.

    Zero depreciation cover - the most popular add-on car insurance plan

    At the time of an auto insurance claim that includes replacement of car parts, an insurance company calculates and applies the rate of depreciation to car parts before settling the claim. The depreciated amount will have to be borne by the policyholder. This is applicable to a comprehensive car insurance policy as well, because the coverage provided by such an insurance plan does not include depreciation on car parts.

    However, a comprehensive car insurance policy can be enhanced through add-on covers by paying extra premium. One of the most popular add-on insurance covers in the auto insurance domain is the zero-depreciation cover. Also referred to as nil depreciation cover or bumper to bumper insurance, this add-on plan enables you to recover the entire cost of replacing car parts without having to pay for depreciation. This cover is only offered to cars that are less than 5 years old. This article educates you on the nuances of the zero depreciation cover.

    Maruti car owners, your one-stop shop destination for the ultimate car insurance package

    If you own a Maruti car, then you should get it adequately insured through the solutions offered by Maruti Insurance Broking Private Limited. Maruti Insurance has tie-ups with renowned car insurance companies in India to provide you the best products and services.

    While your car is insured with an appropriate auto insurance policy from Maruti Insurance, you can get it repaired at any of the Maruti Suzuki service centres throughout the country. These service stations offer advanced amenities and infrastructure to offer you a smooth experience each time.

    You can also renew your existing auto insurance policy at the website of Maruti Insurance Broking Private Limited in a hassle-free manner. The claim process and the procedure for adding endorsements to your policy are quick and convenient as well.

    Third-party car insurance or comprehensive cover - which one should you choose?

    Car insurance can be broadly classified into two types, i.e., comprehensive insurance and third-party liability insurance. If you are conscious about the cost of auto insurance and would like to limit it to a minimal level, then third-party liability insurance is the best option for you. Although it is the cheapest form of motor insurance, it has limited coverage. If you desire complete protection for your vehicle from accidents, thefts, man-made and natural disasters, and third-party liability, then you should buy a comprehensive car insurance policy.

    This article explains the inclusions and exclusions in comprehensive and third-party liability insurance plans. It also enables you to get a detailed insight on these insurance schemes so that you are better equipped at the time of a policy purchase.

    Time to renew your car insurance? Here is all you need to know to get it done.

    An auto insurance policy is a safety net that protects you, your family, and your cherished vehicle from unforeseen incidents like accidents, theft, loss of life, etc. So, it is imperative that your vehicle is equipped with adequate insurance coverage.

    Buying auto insurance is important, but consistently renewing it without any gap in insurance coverage is what matters the most. An auto insurance company rewards a car owner for driving safely and not raising claims by offering him/her a No Claim Bonus. However, if you are not diligent in renewing your car insurance policy on time, you may stand to lose this hard-earned benefit that can actually bring down your renewal premium by up to 50%. Some insurers also refuse to renew the insurance of old cars that have a gap in insurance coverage.

    This article educates you on the A-Z of car insurance renewal. You will also be enlightened on the pronounced advantages of renewing auto insurance online.

    Car Insurance Guide Page

    Car Insurance Articles:

    9 things you must know before renewing your car insurance

    If your car insurance renewal date is approaching, you should ensure that you pay the premium on time. This will prevent the policy from expiring and the subsequent hassles of getting it renewed. There are several other things that you should be aware of at the time of auto insurance renewal. This article provides you tips and tricks that would help you make a prudent decision.

    How to choose the right car insurance policy

    If you are the proud owner of a spanking new car you would be looking to get it insured with appropriate coverage. But how do you actually choose the right car insurance plan?

    Whether you are buying car insurance for the first time or looking to change insurer, there is a set of activities that you should do in order to get your car adequately insured at the best price.

    This page educates you on these activities and equips you with the knowledge to make a prudent car insurance purchase decision.

    What is an endorsement in car insurance?

    As the owner of an insured car you should be aware of certain jargons in car insurance parlance. It is best to read through your policy documentation to gain the necessary knowledge. Alternatively, you can read our guide pages to get a clear understanding of car insurance terminology.

    This page tells you what an endorsement in car insurance is. It also elaborates on the different types of endorsements and how you can request for one.

    How to Make an Effective Car Theft Claim

    During the stressful time of a car theft, you could easily forget to furnish certain details along with your car insurance claim form. In order to make a convincing auto theft claim, you should submit all relevant documents to the insurer. Failure to do so may jeopardise the chances of approval of your claim.

    This page gives you an insight into the necessary steps you should take when you find that your car is stolen. It also lists out the documents that you should submit to the insurance company to add weightage to your claim.

    How To Deal With A Claims Inspection

    A claims inspection is the first step in the process of claim settlement. As part of this inspection, a representative from the insurance company examines the damaged vehicle to assess the repair costs.

    If you find yourself in the unpleasant situation of an accident involving your insured car, you should be aware of how the claims inspection is done. This article educates you on everything you need to know about the claims inspection process.

    GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017

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    • Maruti Care App has been enhanced with new exciting features

      Maruti Suzuki’s service application, Maruti Care, has been upgraded to take into account the requirements of its customers. The app has been enhanced to provide utility support and convenient service to users.

      Some of the new updates in the app include:

      The facility offered to customers to book their cars for service.

      The ‘On-Click Service Booking’ module also allows customers to monitor the status of servicing of their vehicles, either from their workplace or from home.

      Additionally, the app provides customers GPS-enabled on-road assistance on an emergency basis.

      The user can also pay bills digitally through an integrated payment module that offers secure payment facility from anywhere.

      Maruti Suzuki is of the opinion that the app will add to customer satisfaction as it is easy to use and offers transparency in operations. The app is also available in Android and iOS versions.

      18th October 2017

    • India Inc. plans for major investments towards the e-vehicle mission

      India Inc. is preparing for significant investments on e-vehicles (three-wheelers and cars), charging infrastructure, and batteries. The government has confirmed that extensive discussions have been held in this regard with more than 50 domestic and foreign companies. The main focus now is on setting up the charging infrastructure for the ambitious e-vehicle project.

      Several taxi aggregators like Ola are considering purchasing electric three-wheelers in bulk and leasing them to expand their networks.

      It has been confirmed that Tata Power, Acme Industries, ABB, and some Dutch companies have been thinking of establishing vehicle charging stations for the project. Amron Batteries, Exide Industries, and Microtek have been in discussions with top officials for the supply of batteries. They will also consider setting up of shops that swap drained batteries for charged ones.

      Chairman and MD of Tata Power Delhi Distribution Ltd., Praveer Sinha, said that an area of 3km would require around 300 charging stations, each with 4-5 charging slots. Considering the unit cost for each charging station, the entire project in Delhi would cost around Rs.3,300 crore over the first 5 years.

      The government envisions an all-electric fleet of vehicles on the roads by the year 2030.

      17th October 2017

    • Insurance claims cannot be rejected for delay in filing them: SC

      While the Supreme Court was granting a verdict for a case in which a truck was stolen, it stated that insurance claims cannot be rejected solely for delay in filing the claims. A bench comprising of justices R.K. Agarwal and S. Abdul Nazeer mentioned that claim rejection in a mechanical manner on purely technical grounds will lead to policyholders losing confidence in the insurance system altogether.

      The bench was observing the appeal of a man against the National Consumer Disputes Redressal Commision (NCDRC). The commission had ruled that insurance companies could deny claims on the basis of delays in filing them.

      The court has ruled in favour of the policyholder and Reliance General Insurance Co. is liable to pay Rs.8.35 lakh to him.

      The bench also said that if the claim was delayed for a valid reason, then it cannot be rejected for delay. Also, a genuine claim that has been verified by an investigator cannot be rejected on these grounds.

      16th October 2017

    • Ford reveals new 1.5 litre petrol engine

      Ford will soon be launching the Ford Ecosport facelift that will be powered by a new petrol engine. Ford revealed the new 1.5 litre Ti-VCT engine with 3 cylinders at its manufacturing plant in Sanand, Gujarat. The motor has been referred to as a “dragon engine” on the internet, and it will be used for export and domestic purposes.

      The new engine will also feature in Ford’s latest petrol line-up. The engine is configured to produce peak power of 120 bhp and maximum torque of 150 Nm. It is tuned to deliver quicker throttle response and greater fuel efficiency.

      The motor uses 80% of components that are sourced within India, making it a cost-effective piece of equipment. Ford claims that the new motor will ensure a 7% reduction in emissions as well.

      13th October 2017

    • Launch of Skoda’s SUV Kodiaq

      Skoda has announced the launch of its new 7-seater SUV Kodiaq across the country. The vehicle is assembled at the company’s manufacturing plant at Aurangabad and it will be priced at Rs.34,49,501.

      The first 7-seater SUV from Skoda is equipped with a 2.0 litre diesel engine. The vehicle will compete in the market with Ford Endeavour, Toyota Fortuner, and Isuzu MU-X.

      The company currently has three models in the Indian automobile market, i.e., Octavia, Superb, and Rapid. It has a presence across 67 dealerships in 52 cities as well.

      Skoda has announced that bookings are open for the Kodiaq and deliveries will commence from November.

      12th October 2017

    • Maruti’s facelifted Celerio and Celerio X to be launched shortly

      The facelifted Celerio and the Celerio X variant have been spotted at dealerships lately, indicating the impending launch of these models.

      The Celerio facelift has a modified front bumper, sharp headlamps, and a new grille. There will be modifications on the inside of the car as well, including a SmartPlay infotainment system for the model with top specifications. The car will continue to have the 1.0 litre, 3-cylinder petrol engine that generates 68hp of peak power and 90Nm of maximum torque.

      The Celerio X will be similar to the standard Celerio. The difference between the two will be the introduction of a black cladding, bumpers with silver garnish, and faux roof rails in the latest model. The option of orange exteriors will also be offered. There may be multiple variants of the Celerio X.

      The Celerio hatchback competes with Hyundai Eon, Renault Kwid, and Datsun Redigo in the market. The Celerio X will rival the Renault Kwid Climber and Mahindra KUV100.

      11th October 2017

    • Festive season discounts - Nissan offers free car insurance and exchange bonus

      Nissan announced that it will be offering a host of benefits for customers who purchase Datsun and Nissan models during its four-day festive season sale prior to Diwali.

      The offer includes free car insurance, lowest cost for car loan, and an attractive exchange bonus, among others. This amounts to savings of up to Rs.15,000 for the owners of Datsun models and Rs.50,000 for Nissan owners.

      Additionally, all Datsun and Nissan dealerships in the country will remain open continuously for 100 hours from 7 October to 10 October, stated Nissan India Motor Pvt. Ltd. (NMIPL).

      The Nissan portfolio in India includes two brands, namely Nissan and Datsun. The company said that the benefits offered during the Diwali Carnival will delight prospective customers.

      The company expects to receive assured cashback worth Rs.4 crore throughout the four-day sale.

      10th October 2017

    • Car sales see hike in September owing to festive season demand

      The auspicious time of Dussehra and Navaratri have encouraged aspiring car buyers to actually take the plunge, as indicated by the soaring car sales figures in September. There were also several new launches last month that contributed to the sales hike.

      Car sales are expected to stay this way in October as well, owing to the Diwali festival. It is believed to be auspicious to purchase automobiles and consumer durables during this time. Once the festive season wanes in November, the demand is predicted to fall.

      The sale of automobiles have risen in spite of an increase in cess and subsequent price hike on high-end cars, rising fuel prices, and increase in car insurance premiums.

      9th October 2017

    • Telematics will not have a big impact on car insurance premiums: Go Digit chairman

      With the Insurance Regulatory and Development Authority of India (IRDA) granting license to three more general insurers, Go Digit General Insurance Ltd. has started operations as a full-fledged insurance company in the country.

      The introduction of telematics in the car insurance space has grabbed the headlines lately. The chairman of Go Digit, Kamesh Goyal, recently stated in an interview that telematics will not have a significant impact on car insurance premiums in India. This is primarily due to the fact that third-party liability premiums are fixed values, regulated by the IRDA. Goyal said that in other countries, telematics had a bearing on the third-party premiums, but that will not be applicable in India.

      He also stated that high-end cars in our country are usually driven by drivers. In our culture, a car is used by multiple drivers as well. This will not be tracked effectively by the telematics system that recognises the driving behaviour of a single driver who uses the car.

      Further, he said that the cost involved in getting the device fitted to the car is a discouraging factor as well.

      6th October 2017

    • Hyundai to focus on the small car segment in India to drive growth

      While Hyundai Motor has been clearly focussing on the premium car category, it has now decided to widen its portfolio in the compact car segment with two new models in the pipeline. The company is looking to regain market share and build growth.

      Hyundai Motor has seen a dip in sales over the last 2 years. The company plans to make up for this by introducing its new sub-4 metre SUV and hatchback, AH, in 2019. Hyundai expects these vehicles to draw in 5-7% of the market share, said the Managing Director of Hyundai Motor India, Y K Koo.

      Koo is known for having played a key role in establishing the ever-popular Santro in the country. Hyundai is targeting double-digit growth from 2019 to 2020 on the basis of its aggressive product line-up. The company also plans to sell 1 million units in the upcoming 5 years.

      Koo mentioned that the presence of compact cars in the company’s portfolio will lead to acceleration of growth.

      5th October 2017

    Customer Reviews

    • Bajaj Allianz Car Insurance
      "Good Protection"
      0.5 4.0/5 "Great!"
      Recently I got Bajaj Allianz car insurance by paying premium around Rs.21,000 it has the tenure of one year. They gave me the policy copy it has mentioned zero depression with bumper to bumper car protection. I am very much fine about Bajaj car insurance.
      Was this review helpful? 0
      , thane
      Reviewed on Oct 20, 2017
    • ICICI Lombard Car Insurance
      "average service"
      0.5 3.0/5 "Satisfactory"
      The service from ICICI is average but I have not claimed their service till now the documents and the other procedures have been done through dealer itself so they have not asked for my documents the customer service is good I will say the service of ICICI for car insurance service is average.
      Was this review helpful? 0
      , kolkata
      Reviewed on Oct 20, 2017
    • National Insurance Car Insurance
      "Good protection for four wheeler"
      0.5 4.0/5 "Great!"
      I have car insurance from National Insurance, I made the premium of Rs.10,600 for the tenure of one year. I have insured Honda Brio, its second hand car worth Rs.4 lakhs, National Insurance gave me zero depression value with bumper to bumper cover.
      Was this review helpful? 0
      , chennai
      Reviewed on Oct 19, 2017
    • HDFC Ergo Car Insurance
      "Really great"
      0.5 5.0/5 "Blown Away!"
      HDFC ERGO car insurance is really great. I am holding this HDFC ERGO car insurance and this was taken for a period of one year. No claim experience till date with HDFC ERGO . Zero depreciation is there also I get bumper to bumper facility too. I have a placed a request for the policy renewal with the company the request was action ed in a couple of days. Every year IDV would be changed, so it will have a direct impact on the premium amount.
      Was this review helpful? 0
      , lucknow
      Reviewed on Oct 19, 2017
    • Tata AIG Car Insurance
      "Good protection for four wheeler"
      0.5 5.0/5 "Blown Away!"
      Tata AIG gave me the policy coverage around 1.50 lakh for my four wheeler. I have insured Vista 2012 model, cost of the car was around Rs.4.80 lakhs. I was making the premium around Rs. 8000 on yearly basis. I am okay with the policy cover so far I don't have any claim experience.
      Was this review helpful? 0
      , medak
      Reviewed on Oct 19, 2017
    • Bajaj Allianz Car Insurance
      "Excellent policy "
      0.5 5.0/5 "Blown Away!"
      I got the 2nd hand car so I have got the insurance policy with BAJAJ allainze. I paid Rs,18,000 to renew the policy, I never had any claim experince so far. The plan benefits and the coverage is good with this policy. The customer support is good with bajaj alliance because it was very easy to get a car insurance with bajaj car insurance.
      Was this review helpful? 0
      , mumbai
      Reviewed on Oct 17, 2017
    • United India Car Insurance
      "Better policy to use"
      0.5 5.0/5 "Blown Away!"
      I got the united India 4 wheeler insurance policy in the year of 2013. The intimations are given on time to renew the policy. I paid Rs,7000 to renew the policy, .I never had any claim experience with policy. The plan befits and he coverage is good with this policy . The cashless garages option is also available with this policy.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Oct 17, 2017
    • Bajaj Allianz Car Insurance
      0.5 5.0/5 "Blown Away!"
      I do have the four wheeler insurance policy with the Bajaj Allianz general insurance company. I took around 80% of damage cost as reimbursement for my claims, which I have done before. Experience was good one with the Bajaj Allianz.
      Was this review helpful? 0
      , goa
      Reviewed on Oct 17, 2017
    • HDFC Ergo Car Insurance
      "Its Good"
      0.5 4.0/5 "Great!"
      With the help of bank executive, they gave me the car insurance from HDFC Ergo, the premium amount I paid it around Rs. 18,000 it has tenure of tenure one year. It giving full coverage include all parts of the vehicle. I am very fine with HDFC Ergo.
      Was this review helpful? 0
      , indore
      Reviewed on Oct 17, 2017
    • ICICI Lombard Car Insurance
      0.5 4.0/5 "Great!"
      I have insured my car with the ICICI Lombard general insurance company and the response is also good one for me. Plan benefits are also good one with them and they have provided around 80% of cost of the damage of car as claim reimbursement.
      Was this review helpful? 0
      , visakhapatnam
      Reviewed on Oct 17, 2017
    • ICICI Lombard Car Insurance
      "average service"
      0.5 3.0/5 "Satisfactory"
      I have taken a car insurance with ICCI when I take my car from the showroom so there was no need of documents during the process because it have been taken cared by the dealer as they already have my documents also the payments I use to pay my payments directly to my dealer ,I can say the service of ICICI is very average.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Oct 17, 2017
    • HDFC Ergo Car Insurance
      "Good Policy to hold"
      0.5 4.0/5 "Great!"
      I have got a car loan with HDFC Bank and they suggested me their HDFC car insurance. I also took their HDFC ERGO GENERAL INSURANCE for my car. Their service is good and customer care is quick and easy to contact. As the car is new so I do not have a claim experience with them till now.
      Was this review helpful? 0
      , bikaner
      Reviewed on Oct 16, 2017
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