Car Insurance

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

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

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

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

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

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

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

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

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

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

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

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

Claim Settlement Ratio

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

Insurance Premium Amount

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

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

After Sales & Customer Service

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

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

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

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

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

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

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

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

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

Claim for Own Damage

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

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

Third Party Car Insurance Claim

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

Get More Info On Third Party Car Insurance

Theft Claim

If the car is stolen,

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

The modern world is online 24x7, affecting everything from shopping to clearing out EMIs with ease and reliability. Why must you wait in line to subscribe to a good car insurance policy? Banks has woken upto the advantages of offering car insurance renewal online and are ably supported by third party websites that compare the various available insurance policy products. The inherent procedure is as simple as-

1. Know Your Requirements- How much car insurance are you looking for? What kind of premium amount are you comfortable with? What type of features and benefits would make for a comprehensive car insurance policy? Understanding your express requirements is always the first step.

2. Go Online- Access the online portal of the chosen car insurance vendor and purchase the policy after complying with some basic Know Your Customer (KYC) procedures. Usually, requisite documents can be submitted at a later stage when claims are raised on the policy, rendering the online signup procedure that much faster.

3. Car Insurance Renewal Online- The aforementioned online portal also offers motor insurance renewal. Respond to timely notifications from your insurance provider and pay your premiums on the portal itself. All of this is quick, robust and economical when compared to its traditional, offline version.

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

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

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

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

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

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

The documents needed for accident claims are:

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

The documents needed for theft claims are:

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

The documents needed for third-party claims are:

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

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

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

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

1. Is owning a car insurance policy mandatory?

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

2. Is it possible to purchase car insurance online?

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

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

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

4. What is ‘No Claim Bonus’?

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

5. Is service tax applicable on the premium payments?

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

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

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

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

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

8. What is IDV?

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

9. What is Zero Depreciation Cover?

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

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

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

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

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

12. How to calculate car insurance premiums?

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

13. What is covered under third party motor insurance?

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

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

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

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

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

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

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

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

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

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

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

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

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

19. How does car insurance excess work?

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

20. How is car insurance cost calculated in India?

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

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

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

22. How does car insurance payments work?

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

23. How are car insurance claims paid?

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

24. How are car insurance rates calculated?

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

25. How does car insurance work after an accident?

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

26. How do car insurance companies make money?

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

27. How to make car insurance claims?

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

28 How do car insurance deductibles work?

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

29. Are car insurance premiums going up?

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

30. Are car insurance claims public record?

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

31. Are car insurance claims taxable?

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

32. Are car insurance payments tax deductible?

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

33. Where do I get car insurance quotes?

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

34. Where to check car insurance policies?

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

35. Where is car insurance mandatory?

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

36. What is an accident forgiveness option?

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

37. Which car insurance companies are the best?

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

38. When does a car insurance policy expire?

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

39. Why do car insurance premiums increase every year?

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