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Get complete information about the add-ons available to be integrated into your car insurance policy for additional coverage.
Set reminders for your car insurance renewal dates so you never miss your policy's renewal date. The early bird always stands to benefit.
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.
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.
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.
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.
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.
Additional cushions you may consider such as cover for CNG/LPG kits, key replacement costs, road-side assistance etc. will increase your premium amount.
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!
|About Car Insurance||Types of Car Insurance in India||Save on Car Insurance Premium||Car Insurance Add-on Covers||FAQ'S|
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.
|What is it?||Car insurance is essentially a policy purchased by the car owner to mitigate costs incurred due to an accident that damages the vehicle or to protect against car theft. 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.|
|Where do I get it?||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. You can buy car insurance online and get attractive premium discounts!|
|How much should I pay for it?||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.|
|How much coverage should I buy?||It is advisable to buy comprehensive car insurance coverage*. However, if you are cost-conscious, you can buy a third-party liability standalone cover.|
*A comprehensive car insurance policy covers for third-party liability, property damages, and medical expenses. It is compulsory for vehicle owners to have at least third-party liability insurance; however, some prefer to purchase additional insurance to ensure further protection.
Have you been recently been pulled over the cops for your diesel car being too noisy or you’re just peeved by the sound coming off the engine of your diesel car? Well, this could change it all. You don’t need to be a grease monkey to know that diesel engines are far louder than petrol engines, it’s a common fact. However, you don’t need to go buy a new car, consider the prospect of probably using synthetic engine oil, a muffler to dampen the sound coming off your vehicle, or using oil-based additives or a engine sound dampener. This could very well reduce the sound of your diesel car by 10-15 decibels.
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!
There are several reasons why it is important to have an auto insurance for your vehicle including:
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:
The comprehensive car insurance policy offers Personal Accident cover for the owner-driver. In case you require Personal Accident cover for the passengers, you will have to take that coverage separately after paying extra premium. The Personal Accident cover is very useful, as it compensates you in the following manner:
|Type of Injury||Compensation|
|Loss of sight of both eyes, loss of two limbs, or loss of one limb and the sight of one eye||100%|
|Loss of sight in one eye or loss of one limb||50%|
|Permanent total disability from injuries other than the ones indicated above||100%|
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|
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.
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:
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:
The following instances are not covered under a standard car insurance policy:
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.
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.
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:
The staggering statistics of car thefts in the country have left the average car owner in a dilemma. The news of increase in car insurance premium is not very encouraging, but the thought of having to install anti-theft devices in the vehicle for its added security is definitely an unwelcome overhead. But wait, did you know that approved anti-theft devices installed in a vehicle can actually bring down its car insurance premium?
An anti-theft device is an instrument that is fitted in a car to improve its security. It protects the car from being stolen and also brings down the car insurance premium to a certain extent.
So, you can be assured that installing an approved anti-theft device in your car or buying a vehicle with such a device is a step in the right direction.
You should look to install an anti-theft device that is approved by the Automobile Research Association of India (ARAI). It is best to have an anti-theft system installed at the start of the policy coverage. In case you are installing such an instrument in the midst of a policy year, the premium discount will be applicable for the remaining policy period on a pro-rata basis.
If you have previously availed a premium discount for anti-theft device installation, you should produce the details at the time of policy renewal. This will help you get a discount on renewal premium as well.
There are several models of cars today that come fitted with approved anti-theft devices. Almost all luxury cars have a robust in-built anti-theft system. Even mid-segment car manufacturers today have attractive anti-theft systems embedded in the new models.
As stated above, insurance companies welcome the use of such security devices as it brings down the incidence of car thefts and subsequent claims.
In case you are the owner of an older car, your vehicle is unlikely to have an anti-theft system. In this scenario, it is advisable to get it installed separately.
Some of the most commonly used anti-theft devices are the following:
|Steering wheel lock||This device completely locks the steering wheel of the car in place.|
|Car alarm||This is a very useful device as it helps in attracting attention to the car when a thief tries to break in.|
|Tyre locks||Tyre locks prevent the vehicle from being moved. Although it is a great protective device for the car, it is not the best option for a vehicle that is driven on a daily basis.|
|Hood locks||This helps in protecting the car parts and battery from theft.|
|Kill switch||This switch shuts down a part of the vehicle's electrical system when activated.|
Vehicle tracking system - Bajaj Allianz offers ‘DriveSmart', a unique vehicle tracking system that works on the principle of telematics. The system offers you information about the vehicle, such as diagnostics, driving summary, and safety alerts. It is fitted in the insured car and offers real-time information. Apart from helping you drive safer, it also protects the vehicle from theft and saves on fuel costs.
There are various channels through which you can obtain an auto insurance for your vehicle as listed in the below table:
|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 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.|
“Based on IRDA Annual Report 2016-17 on Business Revenue of Insurers”
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.
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.
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.
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.
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.
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!
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.
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:
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.
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.
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:
|No Claim Bonus (NCB)||
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 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:
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:
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:
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:
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.
In case of a major accident resulting in heavy damage to the car,
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.
If the car is stolen,
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:
The steps involved in renewing car insurance online are listed below:
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:
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:
|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:
The documents needed for accident claims are:
The documents needed for theft claims are:
The documents needed for third-party claims are:
At the time of policy renewal, many policyholders consider changing their insurance provider under certain circumstances such as:
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?
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:
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:
Key features of the zero depreciation cover include the following:
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:
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:
The No-Claim Bonus (NCB) is a reward given to a car owner for not raising any claims in a policy year.
The following documents are required to request for an NCB retention letter:
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:
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:
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.
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:
An endorsement in car insurance is an addition or amendment to an existing policy to improve/limit its scope.
Endorsements can be classified into two types, i.e., premium bearing endorsements and non-premium bearing endorsements. Under a premium bearing endorsement, the policyholder is required to pay an additional premium towards the policy. A non-premium bearing endorsement, on the other hand, would cause a reduction in the annual premium.
Events like transfer of ownership of the vehicle, addition of a Personal Accident cover, installation of electrical accessories, etc. can necessitate a premium bearing endorsement in your car insurance policy. A list of probable events and the documents required to include these as endorsements in a motor insurance policy are elaborated in the table below:
|Correction of the ex-showroom price of the vehicle, if incorrectly mentioned in the policy||
|Addition of CNG/LPG kit||
|Addition of Personal Accident cover for passengers||
|Removal of an anti-theft device approved by the Automotive Research Association of India (ARAI)||
|Electrical accessories installation or removal||
|Non-electrical accessories installation or removal||
|Expansion of the geographical area to include Bhutan, Bangladesh, Nepal, Maldives, Sri Lanka, or Pakistan||
|Inclusion/removal of membership with automobile association||
|Participation in rally||
Events like correction of your vehicle's registration number, change in nominee details, mobile number change, etc. require a non-premium bearing endorsement. A list of probable events and the documentation needed for including these as endorsements in a car insurance policy are explained in the table below:
|Chassis/engine/registration number correction, if it is incorrectly mentioned in the policy||
|Correction in the “type” of customer, if it is incorrectly mentioned in the policy||
|Correction in the name of the customer/corporate or prefix, if it is incorrectly mentioned in the policy||
|Correction in the customer's city/address/gender||
|Change in lease agreement, hire purchase agreement, hypothecation agreement||
|Nominee details correction, if it is incorrectly mentioned in the policy||Request letter from the policyholder|
|Change in mobile number or contact details of the policyholder||Request letter from the policyholder|
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 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.
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:
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.
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:
|Private cars up to 1,500 cc||Rs.1,000|
|Private cars above 1,500 cc||Rs.2,000|
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.
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.
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.
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.
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:
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.
X can choose any of the following options:
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:
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:
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.
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.
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:
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.
There are several different reasons due to which you may want to cancel your car insurance policy. Some of the major reasons are as follows:
Regardless of the reason for the cancellation of your car insurance policy, you will have to intimate your insurer if you are sure you want to cancel your car insurance. Your insurer will commence the necessary procedure for cancellation, which generally takes between 7 and 15 days.
Your insurer will help you with the entire cancellation process. Some insurers ask their policyholders to submit a document for cancellation along with their signature. Some insurers tend to ask their policyholders to send an email regarding the same. Regardless of the approach taken by your insurer, you will have to provide them with a signed declaration after which they will proceed with the cancellation. The company will then send you a letter or email to confirm the cancellation. The letter or email will also contain information regarding the due refund.
In case you plan to cancel your car insurance policy when the expiry is date is nowhere round the corner, you will be eligible for a refund. Make sure you check for the same. Also, get in touch with your insurance company to return the policy certificate. Doing so will make it easy at the time of purchasing a new car insurance plan. It will also help retain your No Claim Bonus.
Car owners across the country are mandated to have insurance. It is important to ensure that you are covered by a new car insurance policy as soon as you cancel your current car insurance. If not, you will be penalised for driving without insurance. Apart from the penalty, you will also be liable for each and every property damage or personal injury incurred by a third party in case you are involved in an accident. Moreover, your premium payment will be significantly higher at the time of purchasing a new policy. It is therefore crucial to stay insured at all times.
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.
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:
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:
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:
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.
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.
It is advisable to not raise claims for small damages to your insured car. This is due to several reasons:
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.
Yes. According to prevalent motor vehicles laws in India, every vehicle plying on Indian roads must be insured.
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.
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.
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.
Yes. The applicable service tax is in line with the regulations set by the Insurance Regulatory and Development Authority of India (IRDA).
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.
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.
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.
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.
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.
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-
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.
After informing your current car insurance provider, please submit the documents mentioned below.
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.
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.
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.
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.
The IDV and NCB is taken into account while calculating car insurance costs in India along with other discounts and offers.
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.
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.
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.
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.
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.
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.
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.
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.
The IRDAI has proposed up to 50% hike in premium rates for car insurance from April 1st, 2017.
Your new insurance provider can obtain your insurance claim records from your previous insurance provider.
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.
Only if the car is used for business purpose will the car insurance premiums paid by you be tax deductible.
Car insurance quotes can be obtained online through the insurance company website.
You can check and compare car insurance policies on third-party websites like bankbazaar.com or the official websites of the insurance companies.
As per the Motor Vehicle Act, 1988, a third-party insurance is mandatory for all running vehicles on Indian roads.
After an at-fault accident, the accident forgiveness option ensures there is no increase in your insurance rate.
ICICI Lombard, Bajaj Allianz, Reliance Car Insurance, Tata AIG, and Bharti AXA are some of the top car insurance providers in India.
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.
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.
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.
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.
Total loss: When an insured vehicle is totally damaged, or destroyed to an extent where it cannot be repaired or recovered for further usage, it is said to be a total loss. Salvage loss: As indicated above, when a vehicle is severely damaged, or totalled beyond repair, it is declared as a ‘total loss’ by the insurance company. Under such circumstances, the vehicle cannot be driven on public roads. However, if the vehicle is restored or rebuilt again and made roadworthy, it will be allowed to be driven again and will bear the tag of ‘restored vehicle’, ‘rebuilt vehicle’, or ‘reconstructed vehicle’. The rebuilt vehicle will also get a salvage loss tag.
A certificate of insurance (COI) is the document issued by your insurance provider when you buy an insurance policy from them, or renew an insurance policy with them. The certificate of insurance is a token of proof for your insurance purchase. The certificate is furnished with all the details related to the insurance policy such as, the type of insurance, the coverage provided by it, name of the insurer, policy number, tenure of insurance, and name of the insured.
Yes, the city you are residing in will have a direct effect on the premium that you pay. Rural areas are less likely to have accidents as the traffic congestion is less. Hence, the rates of premiums are less if your car is registered in a rural area. Urban areas with a high population are usually more congested and thus the rates of accidents are higher. Since, insurance companies ascertain the premium rates based on the risk involved, the rates will be higher in urban areas or metro cities than rural areas. Another factor on which the insurance rates are dependent is the area in particular. Your insurer can figure out the amount of thefts and accidents in the area where your vehicle is registered using your PIN code. Areas with more thefts, vandalism issues, accidents, etc. will have a higher rate of premium.
Period of policy/policy term is the tenure for which an insurance policy is valid or active. During this tenure, your car will be covered under the policy. The starting date is basically the date of inception of the policy and is usually valid for a year. The policy will be valid till the ending date and has to be renewed once the coverage tenure is over.
No, it is not possible to continue a car insurance in the name of the previous owner even after the ownership is changed to your name. It is mandatory to have the same address furnished for the registration and insurance of the car, in order to make a claim. It is important to change the name and address to enjoy the benefits of the insurance policy.
The following points can be quoted as the disadvantages of not having a valid insurance policy for your car:
If your car insurance application has been rejected, you should look for another insurance provider immediately. There are a number of public and private sector insurance companies in India and most of them offers car insurance as a product. The best thing to do would be to approach another insurer and get a quotation for your vehicle insurance policy. Remember to check for quotes online through a third-party website and compare between all the options there. Using this method, you might end up getting a better deal altogether.
Yes, you are eligible to retain the accumulated NCB or No Claim Bonus. If the insurance policy is renewed within 90 days of its expiry, the NCB can be availed. You will lose the NCB if you renew the policy after the 90-day period.
If you are renewing your insurance policy with your current insurer, you do not need a proof. Your insurance company will have a complete record of the claims that you have made and the NCB accrued. You would need a proof of no claims only if you are renewing your insurance with a different insurance provider. In this case, you can ask your previous insurer to issue a letter confirming the No Claim Bonus accumulation.
If your car has an additional CNG/LPG kit it has to be insured separately. You have to declare the additional fittings at the time of making the insurance policy proposal.
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.
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.
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.
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.
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
Electric Cars That Stole The Limelight At The 2018 Auto Expo
The Indian government has a vision that all new cars on the roads will be electric by 2030. This is in line with its intention to curb the burning of fossil fuels that contributes to air pollution and global warming. Auto manufacturers are now competing with each other to create trendsetting electric vehicles that will be the future of the Indian automotive industry. The 2018 Auto Expo witnessed a large number of electric vehicles (EVs) on display. Some of the models that stole the show are listed here.
Do You Own A Datsun Go+ Car? Here’s What You Need To Know About Its Insurance…
The Datsun GO+ car has 5+2 seating capacity to enable the entire family to travel together. The car is accentuated by attractive external and internal features. You can buy a suitable insurance policy for your Datsun GO+ car through the Datsun Insurance scheme that is available at Datsun dealerships throughout the country. Through this insurance plan, you can avail cashless garage facility at several leading service centres across India.
This page gives you an insight into the cost of insuring your Datsun GO+ car. It also provides you information on how you can renew your insurance plan.
Want To Buy An Insurance For Your Mahindra Kuv100 Nxt? Click Here…
The Mahindra KUV100 NXT is a 6 seater crossover with an aggressive and sporty SUV-like design and stance. It has also got some of the best-in-class internal and external features. You can buy insurance policies as per your coverage needs either through a third-party website or directly from an insurance provider.
Visit this page to know more about the Mahindra KUV100 NXT - right from ex-showroom price to cost of insuring the car. It also provides information on buying and renewing your insurance policy.
Here’s All You Need To Know About Insuring Your Tata Tiago…
The Tata Tiago is one of the biggest players from Tata Motors at this moment. With the new and sharp revamped design and some of the best-in-class features and technology, this car has become an eye-candy and is giving a tough fight to its competitors in the market. This page provides all the relevant information like price of the Tata Tiago, internal and external features, safety features, and information related to buying or renewing the insurance policies. It also provides information regarding the cost of insuring the car.
Car Insurance - New Versus Used
When looking to buy a car, you can seriously consider the purchase of a used car. Apart from the fact that a second-hand vehicle comes at a fraction of the cost, it is possible to select one from a variety of makes and models. It is also easy to purchase a used car insurance policy to protect the vehicle.
In this page, we highlight the key differences between insurance for a used car and a new one. Since insurance is a prominent cost head for a car owner, it is worthwhile to consider the cost of insuring a new car versus an old car before the actual vehicle purchase.
GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017
Jaguar has now launched the F-Type Coupe and Convertible in India and has priced the cars at Rs.2.65 crore and Rs.2.80 crore respectively.
The car is powered by a 5-litre supercharged V8 engine and can go from 0-100kmph in 3.7 seconds. Additionally, the cars also come with a lightweight titanium exhaust, cooling options for the seats, and 20-inch alloy wheels.
The F-Type SVR is the first Jaguar to be designed by the Special Vehicle Operations and is now open for bookings. The SVR Coupe would rival the Porsche 911 Turbo S and the Nissan GT-R.
21 June 2018
With more than a year left for the India launch of the Kia Tusker, the Korean car manufacturer has announced its plans to launch another SUV in 2020.
Kia Motors showcased the SP concept-based SUV at the Auto Expo in 2018 and announced that the car would be first launched in India. Kia plans to launch more cars at regular intervals in the hopes of breaking the Indian market.
In addition to the Tusker and a second SUV launch in 2020, Kia also plans to launch the Sportage SUV and Carnival MVP. There are also rumours of smaller cars being launched in the next couple of years and could be similar to the Rio or Picanto.
20 June 2018
Mercedes-Benz will be launching the S 63 Coupe on 18 June 2018. The car will have the same engine as the Mercedes-AMG E 63 S 4Matic+ that was launched last month.
The engine is a V8 unit that generates power of 612 hp and torque of 900 Nm. The previous model of the car also had exceptional performance figures. The car’s engine is coupled to a 9-speed automatic transmission unit. In the international markets, the S 63 Coupe is placed below the S 65 Coupe.
The car has a Race Start function that helps it reach 100 kph within 3.5 seconds. The exterior updates include a new front design with bigger air intakes. The vehicle also has 19-inch alloy wheels.
In India, the S 63 Coupe will cost Rs.3 crore, ex-showroom. The car will compete with the Bentley Continental GT and Porsche Panamera Turbo in the market.
19 June 2018
In order to surpass operators such as Ola, Uber, and Zoomcar and to drive economic growth, Mahindra Electric has commenced focusing on the sale of vehicles. This act has come at a time when electric cars are set to be the next revolutionary thing in the market.
The CEO of Mahindra Electric stated that the company’s vehicle sale is all set to take a tremendous hike this year as the core team has began to focus purely on this aspect. In the year 2017, Mahindra Electric was reported to have sold close to 1,500 vehicles. This number is expected to double itself this year.
CEO, Mahesh Babu also attributed the sale of EV vehicles to commercial vehicles and fleet operators like Uber.
18 June 2018
French automaker Group PSA could enter the Indian market in India with an imported Citroen model. The aim behind launching this SUV in the country is to build brand image before the company enters into the phase of mass production. The company also plans to import the Citroen C5-Aircross or Citroen C84 in the days to build a strong brand image in the country. PSA may also consider assembly of vehicles at its Chennai plant. With the upcoming launches, the French carmaker envisions taking on some of the well established brands in the market such as Hyundai Tuscon, Jeep Compass, and Skoda’s upcoming SUV Karoq.
14 June 2018
Maruti Suzuki is India’s biggest carmaker not only in terms of volume of production but also in profit generation than its close rivals Hyundai and others. The carmaker that holds over 50% market share in the Indian market sells every second car in the country. The Suzuki backed company made a record sale of 1,779,574 units and also made a record profit of Rs.77.21 billion last financial year. A significant part of the units sold were the newly launched light commercial vehicles.
13 June 2018
In line with the government’s mission of rapid electric mobility adoption, the Maharashtra government signed an agreement with Tata Motors and Mahindra & Mahindra to deploy 1,000 e-vehicles across the range of commercial and passenger vehicles in the state. Tata Motors and Mahindra & Mahindra last year won an order of 10,000 and 9,500 electric vehicles respectively. As per the agreement, the government and the two automakers will work in unison with logistics companies, taxi service providers, and others to deploy electric vehicles in the coming year.
12 June 2018
With the Indian government’s vision to make the country an all-electric vehicle driving nation by the year 2030, electric two-wheelers are gaining significant demand in India. With stricter pollution norms coming into place and rising awareness, the demand for electric two-wheelers and cars is expected to rise further. The automakers including Tata Motors and Mahindra & Mahindra too sense the emerging trend and are working towards bringing electric vehicles to the market. However, till the electric vehicles reach the state of mass consumption, the cost of their parts are going to remain high. The same will also affect the insurance premiums in a significant way.
11 June 2018
Kia is planning to bring its SP Concept SUV to India in the mid of 2019. It has recently organised a competition called ‘Fame for Name’ in which potential customers could suggest original names for the new Kia SUV. Out of the all the entries, Kia selected four best names. The final name will be selected based on an Internet poll. As of now, the name ‘Trazor’ is leading among the four. The winners of the competition have a chance to win exclusive merchandise of the company.
8 June 2018
With changing market dynamics and change in Tata’s automobile design strategy, Tata Motors has recently decided to pull the production plug and discontinue the production of Tata Indica and the Tata Indigo eCS. First showcased at the Geneva Motor Show in 1998, Tata Indica established itself as one of the iconic cars in India. As the country’s first indigenously developed car, there were over 1.18 lakh bookings received for the car within one week of its launch. In the financial year 2017-18, Tata Motors manufactured 1,686 units of Tata Indica and 556 units of Indigo CS Sedan.
7 June 2018
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