Insurance is like a spare tyre. You may not require it, but not having one is not an option.
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    Car Insurance

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    Car insurance offers coverage against costs that one might have to incur in case of an accident, theft of the vehicle, or vehicular damages. Policy buyers can purchase a third-party liability insurance policy or a comprehensive car insurance policy.
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    Smart Buying tips for your Car Insurance

    Be an Add-on Smart Cookie

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

    Renew On Time, Every Time

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

    Avoid False Declarations

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

    Discount for Security Features

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

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    Your premium for a Car insurance is determined by

    Registration City

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

    Make & Model

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

    No Claim Bonus Percentage

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

    Type of Cover Taken

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

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    Expert Tips For Cutting Your Car Insurance Costs

    You Snooze, You Lose

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

    Don't Sweat the Small Stuff

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

    The Net's Your Best Bet

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

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    In 21st Century India, owning a car has moved beyond being a status symbol to an everyday necessity. Being a car owner proves your financial independence, puts you in a refined league of your peers and wins you some much-needed brownie points with the family.

    But the joys of owning a car could be short-lived if say, your vehicle meets with an unfortunate and untimely accident, is stolen, is lost in a raging flood, or worse - if it turns up to be the cause of an accident that costs the life or property of a complete stranger. These situations can be disastrous, costly, and frustrating!

    Enter, car insurance. This handy insurance policy covers you against the uncertainties that could befall your cherished vehicle and protects you against the probable financial losses. Here are some basic questions and answers that will familiarise you with the concept of car insurance.

    Car Insurance
    Car Insurance

    What is Car Insurance?

    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.

    *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.

    Why Do I Need Car Insurance?

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

    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.

    • This Week's Pick

      Dude!! Where’s my car? Use the GPS Tracking System

      Have you ever forgotten where you have parked your car, or just can’t find it in the mall parking lot? Then you should seriously consider installing a GPS tracking system. A GPS tracking system is not a navigation tool, it just helps you track your car anywhere on the globe, and in addition, it helps you check the speed and performance of your car. Not only can you find your car with ease, if your car does get stolen, the GPS tracker will help you nab the thief. Given your kid your car? You can wipe the smile of his/her face by tracking your car all the way - even across the globe.


    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.

    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.

    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.

    Sustained Peace of Mind

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

    Why is it Important to have Car Insurance in India:

    The following are some of the important reasons why every car owner must have a valid car insurance policy:

    • A third-party liability insurance policy is compulsory in India as per Section 146 of the Motor Vehicle Act, 1988. The act makes insurance mandatory for each vehicle whether utilised for social, personal, domestic, business, or entertainment purpose.
    • A third-party car insurance policy covers the policyholder against legal and financial liabilities arising out of death, bodily injury, or damages caused to property owned by a third party while driving the car. It does not cover expenses on repairs and damages of the car or injuries caused to the driver.
    • It is recommended for car owners to go for a comprehensive insurance policy as it offers a wider scope of protection that covers third-party liabilities as well.
    • In India, driving without a valid motor insurance policy is an offense as per the law and may attract a penalty of Rs.1000 and/or an imprisonment up to 3 months. The driving license and Registration Certificate (RC) may also be suspended depending on the case.
    • The person behind the wheels is liable to produce the vehicle insurance certificate whenever asked to do so by the concerned officer of the law.
    • Rule 141 of the Central Motor Vehicle Rules 1989 mandates all insurance companies to issue insurance documents irrespective of whether a person buys a new insurance policy or renew their existing motor insurance policy.
    • A comprehensive car insurance policy protects you against natural and man-made disasters which are beyond control.
    • A car insurance policy provides the insured with financial assistance to bear medical costs, costs of vehicle repair, third-party liabilities and so on. In case of death or disability of the policyholder, his/her family receives certain compensation as per the terms of the insurance policy.
    • Some insurance companies also offer additional facilities such as cashless garages and roadside assistance that make claiming the insurance easy and convenient.
    • What is new in motor insurance?

      In light of the developments over the past few years, the framework in place for motor insurance will be revisited. Some of the expected changes to the current product structure have been listed below:

        • Impact of detariffing the pricing component will be reviewed.

        • Classification of products under own damage will be reviewed.

        • The product structure, the duration of products, tweaking the product suite to include technology-enabled products, and the design of the product will be reviewed.

    Types of Car Insurance Policies in India:

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

    Comprehensive insurance:

    This type of insurance will cover third party liabilities as well as damages caused to you and your car. You will receive financial protection against liabilities arising from natural disasters, theft, and accidents. Comprehensive insurance plans include third-party premium and own-damage premium. Own-damage premium is determined based on the age of the car, make and model of the car, geographical location, and engine capacity.

    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
    Death 100%
    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

    Compare Before Buying the Best Car Insurance Policy Online:

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

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

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

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

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

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

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

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

    What Terms are Usually Covered by a Car Insurance Policy?

    Loss or damage to your vehicle

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

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

    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.

    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

    Additional covers

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

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

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

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

    Documents Required for Car Insurance:

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

    How Premiums are Determined for Car Insurance Policies?

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

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

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

    The Impact of Anti-Theft Devices on Car Insurance Premium:

    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?

    What is an Anti-Theft Device?

    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.

    Why Do Car Owners Who Have Installed Anti-Theft Devices Get Premium Discounts?

    • From the perspective of the car insurance company, a customer who has an anti-theft device in the car is a more responsible owner. The vehicle also has better protection from theft and vandalism. The insurer, in turn, rewards the customer with a car insurance premium discount.
    • The claim figures from insurance companies indicate that the number of thefts associated with cars having anti-theft devices are relatively lower. Car insurance providers benefit greatly when the number of claims are fewer. Hence, they encourage the use of anti-theft devices.
    • The discount in car insurance premium offered by providers is usually in the range of 2.5%, up to a maximum of Rs.500. It should be noted that this does not correspond to the entire premium for the policy. The discount is only on the own-damage part of the annual premium.

    What Type of Anti-Theft System Should You Choose?

    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.

    Do New Cars Already Have Anti-Theft Devices?

    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.

    What Type of Anti-Theft Devices are Available in the Market?

    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.

    Agents vs Dealers vs Brokers:

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

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

    Car Insurance Add-on Covers - Optional but Most Important:

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

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

    Top Car Insurance Companies in India:

    “Based on IRDA Annual Report 2016-17 on Business Revenue of Insurers”

    1. ICICI Lombard Car Insurance:

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

    2. Bajaj Allianz Car Insurance:

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

    3. Reliance Car Insurance:

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

    4. Tata AIG Car Insurance:

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

    5. Royal Sundaram Car Insurance:

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

    6. Bharti AXA Car Insurance:

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

    7. HDFC ERGO Car Insurance:

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

    How to Purchase Car Insurance Online?

    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.

    Get the Benefits of Buying Car Insurance 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!!

    Things to Remember Before Buying Car Insurance Policy:

    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.

    How to Lower Your Car Insurance Costs?

    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.

    Hassle Free Online Car Insurance Renewal:

    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!

    What is a Car Insurance Claim?

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

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

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

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

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

    Steps Involved in Raising a Car Insurance Claim:

    1. For own-damage claims:

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

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

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

    2. For third-party liability claims:

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

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

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

    3. For stolen car claims:

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

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

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

    Checklist to Follow to Make Car Insurance Settlement Claims More Faster:

    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.

    How to Renew an Expired Car Insurance Policy?

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

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

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

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

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

    How to Claim Under Your 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.

    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.

    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.

    How to Go for Online Car Insurance Renewal?

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

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

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

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

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

    Points to Consider While Renewing Car Insurance:

    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.

    Inclusions and Exclusions in Car Insurance:

    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.

    Smart Ways to Reduce Your Car Insurance Premiums:

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

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

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

    Reasons to Change Your Car Insurance Provider:

    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.

    Advantages of Bumper to Bumper Car Insurance:

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

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

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

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

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

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

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

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

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

    Why is Bumper to Bumper Insurance So Popular?

    Bumper to bumper insurance is one of the top selling add-on car insurance plans in India. It is popular due to the following reasons:

    • First-time car buyers prefer opting for this cover, as they are wary of accidents and subsequent claims.
    • Car owners who employ drivers and those who use their cars regularly also favour this add-on cover.
    • Owners of high-end cars tend to protect their vehicles using a nil depreciation cover.

    Key features of the zero depreciation cover include the following:

    • Bumper to bumper insurance policies offer greater coverage; hence, the policyholder is required to pay extra premium (in the range of 10% to 20% of the base policy premium) to avail this benefit.
    • The cover is offered only to cars that are below 5 years old.
    • The zero depreciation plan has limitations on the number of claims that the policyholder can raise in a year. Details of the limits will be mentioned in the policy document and it varies between insurers.
    • The plan does not protect the vehicle from engine damage due to oil leakage or water ingression. Also, standard wear and tear to clutch plates, bearings, and tyres are not usually covered.
    • Other exclusions under the plan are mechanical breakdowns that do not result in an accident, coverage for consumables, and cover for consequential damages.
    • At the time of a claim, the policyholder will be required to pay a component of the claim value that corresponds to compulsory deductibles.
    • The exclusions that usually fall under a comprehensive motor insurance plan are also applicable to bumper to bumper insurance:
      • Coverage is not offered if the private car is used for commercial purposes.
      • The driver not having a valid driving license is excluded from coverage.
      • If the driver is driving under the influence of alcohol or drugs, the cover will not be valid.
      • If the driver is involved in illegal activities or malicious driving, cover is not offered under the plan.
      • If a claim is not raised within the specified timeframe, it will be rejected.

    What is cashless car insurance?

    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.

    How Does Cashless Car Insurance Work?

    The cashless claim settlement facility works as described below:

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

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

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

    How to Transfer Old Insurance to Your New Car?

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

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

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

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

    The following documents are needed to transfer car insurance:

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

    Car Insurance Transfer and No-Claim Bonus:

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

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

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

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

    Car Insurance Myths You Should Know About:

    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.

    How to Verify the Authenticity of Your Motor Insurance Policy:

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

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

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

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

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

    What Decides Your Future Auto Insurance Premium?

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

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

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

    What to Avoid When Buying a Car Insurance Policy?

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

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

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

    What is an Endorsement for Car Insurance?

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

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

    Types of Endorsements in Car Insurance:

    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.

    Premium bearing endorsement:

    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:

    Event Documents required
    Ownership transfer
    • Endorsed Registration Certificate (RC) or signed Form 29 and Form 30
    • Letters from the buyer and seller
    • A fresh proposal form that is updated and signed by the new owner
    • A copy of the original policy
    • A report of vehicle inspection
    • The endorsement premium amount
    Correction of the ex-showroom price of the vehicle, if incorrectly mentioned in the policy
    • Request letter from the policyholder
    • Copy of the invoice
    • If there is an increase in premium following the endorsement, the difference in premium amount needs to be paid
    Addition of CNG/LPG kit
    • Request letter from the policyholder
    • Endorsed RC
    • Copy of the invoice of the CNG/LPG kit
    • A report of vehicle inspection
    • If a bi-fuel kit is added, there would be an increase in premium. The difference in premium amount needs to be paid
    Addition of Personal Accident cover for passengers
    • Request letter from the policyholder
    • RC, so that the seating capacity of the vehicle can be checked
    • The premium amount for endorsement
    Removal of an anti-theft device approved by the Automotive Research Association of India (ARAI)
    • Request letter from the policyholder
    • Invoice copy of the device
    • Since the removal of an anti-theft device increases the premium, the difference in the premium amount needs to be paid
    Electrical accessories installation or removal
    • Request letter from the policyholder
    • Accessories invoice copy
    • A report of vehicle inspection
    • Premium amount
    Non-electrical accessories installation or removal
    • Request letter from the policyholder
    • Accessories invoice copy
    • A report of vehicle inspection
    • Premium amount
    Expansion of the geographical area to include Bhutan, Bangladesh, Nepal, Maldives, Sri Lanka, or Pakistan
    • Request letter from the policyholder
    • Premium amount
    Inclusion/removal of membership with automobile association
    • Request letter from the policyholder
    • Proof that the policyholder is a member with the automobile association
    • Premium amount when the membership is revoked or expires
    Participation in rally
    • Request letter from the policyholder
    • Premium amount

    Non-premium bearing endorsement:

    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:

    Event Documents required
    Chassis/engine/registration number correction, if it is incorrectly mentioned in the policy
    1. Request letter from the policyholder
    2. Endorsed copy of the RC
    Correction in the “type” of customer, if it is incorrectly mentioned in the policy
    1. Request letter from the policyholder
    2. Copy of the RC / invoice
    Correction in the name of the customer/corporate or prefix, if it is incorrectly mentioned in the policy
    1. Request letter from the policyholder
    2. Copy of the RC / invoice
    Correction in the customer's city/address/gender
    1. Request letter from the policyholder
    2. Copy of the RC / invoice
    Change in lease agreement, hire purchase agreement, hypothecation agreement
    1. Request letter from the policyholder
    2. Endorsed copy of the RC
    3. NOC or sanction letter from the financial institution
    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

    How Much is the No-Claim Bonus for Car Insurance in India?

    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%

    What are Consumables in Car Insurance?

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

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

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

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

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

    Auto Insurance Loyalty Rewards:

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

    Advantages of car insurance loyalty:

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

    Disadvantages of car insurance loyalty:

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

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

    What are Voluntary and Compulsory Deductibles in Motor Insurance?

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

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

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

    Car insurance deductibles can be classified into two types:

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

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

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

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

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

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

    What is RTI in Car Insurance?

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

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

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

    Third-Party Car Insurance Claim:

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

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

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

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

      • When X has only third-party liability insurance

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

      • When X has comprehensive car insurance

      X can choose any of the following options:

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

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

    Problems with Car Insurance Claims:

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

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

    1. Failure to inform the insurer immediately - The longer it takes for you to intimate your insurance company of the accident, the tougher it gets for the claim to be approved. Following an accident, you should decide quickly whether you want to raise a claim or not. Car insurance companies mandate that all accidents be reported within 24-48 hours of occurrence. In case you forget to inform the insurer within this timeframe or use your damaged car after the accident, your claim is likely to be declined.
    2. Not providing all information - It is crucial that you document all information related to the accident. You may need to capture photos and speak to witnesses for the same. It is also important to inform the police of the mishap and file an FIR. If you do not represent the facts accurately at the time of raising the claim or if there is a fraudulent document submitted, the claim will be rejected.
    3. Delay in determining fault - It is natural for each driver to blame the other for the accident. Even if an individual accepts the fault at the scene of the accident, he/she may change his stand after getting into talks with his/her insurer. You should, hence, be very cautious when a third-party is involved in the accident.
    4. Not knowing how to proceed - It is important that you are aware of the car insurance claim process so that it goes smoothly and the payout is quicker. If you take some extra time at each step, you will be able to ensure that everything is in order. This practice can eventually save you a lot of time and effort.
    5. Failure to purchase sufficient coverage - At the time of policy purchase, it is advisable to buy sufficient cover. Otherwise, you may be disappointed at the time of a claim.
    6. Not revealing all details to the insurer - Some customers do not reveal all relevant details at the time of car insurance purchase. However, this can prove to be disadvantageous in the long run. If you are in a situation where you have to raise a claim, the insurer may identify that you had concealed information and penalise you for the same. This can even result in the rejection of your claim.
    7. Selecting the garage - All insurers allow you to pick a garage of your choice where you can get your vehicle repaired. Most insurers recommend that you get the repair work done at network garages. This is because the insurance company will already have good relations with the service centres that are in its network. This way, it will be able to negotiate on better deals for the repair work, and even expedite the process.
    8. Ambiguous terms and conditions in the policy - Some insurance companies have ambiguous terms and conditions in the policy documentation. So, it is important that you read through the policy and understand the coverage under it. In case you require any clarification, you can approach the insurer for explanation. Hence, you will be better equipped at the time of a claim.
    9. Low offers - Insurance providers have claim adjustors who try to keep the cost to the company at a minimum. So, the first offer they make may be a very low value. Before you submit the claim, you should personally make an assessment of the amount you are willing to settle for. Do not agree to the first offer from the insurer unless it is in line with your expectations.
    10. Delay in payment - Most of time, the claimant waits for the payment endlessly, without enquiring about the status of the case. If you experience a delay in receiving the claim payout, you should approach the insurer and check the reason for the same. The insurance company may be waiting for some documents from you. So, it is alright to ask questions and chase it up.
    11. Car insurance policy in lapsed status - If your policy was in lapsed status at the time of the mishap, the insurer will reject the claim. Hence, it is important to keep your auto insurance policy in-force without a gap of even a single day.
    12. Driving without a valid license - The driver of any vehicle on the road should carry a valid driving license - this is the law and should be adhered to strictly. If your car was involved in an accident and you fail to produce a driving license at that time, your insurance claim will not stand valid.
    13. Driving while you are drunk - Drunk driving is a serious traffic offense that can be penalised heavily. No claim can be raised if your were under the influence of drugs or alcohol when the accident took place.
    14. Using the car beyond limitations - If your car insurance company learns that the accident occurred while you were using the car inappropriately beyond its limits, your auto insurance claim will be declined.
    15. Undertaking repairs of the car without informing the insurer - This is a very crucial requirement that is often overlooked by car owners. If your insured vehicle is involved in an accident, you should inform the insurance company before proceeding for repairs. The insurer will send a surveyor to assess the damages incurred by the vehicle before it is taken to a garage. Failure to get the car surveyed can result in a claim rejection.
    16. Car insurance not in your name - Car insurance companies mandate that the insurance policy and the registration certificate of the vehicle should be in the name of the car owner. Any mismatches in the information will result in the refusal of claim. So if you are buying a used car, ensure that the registration certificate and car insurance are transferred to your name.
    17. Customisations to the car that were not included in the policy - If you have installed an accessory in the car that was not declared in the insurance policy, the insurance company may reject your claim. Claim refusal is possible even if the damage incurred by the car was not related to the installation.
    18. Usage of the car beyond the geographical limit in the policy - Automobile insurers have segregated geographical zones for insurance. The metros such as Mumbai, Delhi, Chennai, and Kolkata are classified as Zone A. The rest of the country falls under Zone B. If the insured car was involved in an accident outside the zone specified in the insurance policy, there is a good chance that the claim for damages will be rejected.
    19. Normal wear and tear - The normal wear and tear of a vehicle is not covered under a comprehensive car insurance policy. So, even if your claim was honoured by the insurer, you may not receive the full claim amount. The portion of the claim that corresponds to depreciation (due to periodic wear and tear) will have to be borne by you.
    20. Consequential damages - If your car has suffered from a consequential damage, your insurer will not offer coverage for it.
    21. Certificates for commercial vehicle - If a commercial vehicle's driver does not have valid road permit and fitness certificate issued by the RTO as on the date of the accident, then the claim can be rejected.

    Paying for the damages after a road mishap can be frustrating. But a 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.

    How to Negotiate with your Insurer on an Auto Insurance Claim:

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

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

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

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

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

    • Send a demand letter to the insurer - After you have identified what your claim is worth, you should send a demand letter to the insurance provider. Describe the accident, the injuries you suffered, the medical treatment you have availed, your ongoing health issues, damages to your car, and any other losses that resulted from the accident. Then you should inform the insurer of the amount you are demanding.
    • Since the insurance company is likely to settle on an amount that is 25%-75% lower than what you have demanded, you should take that into account when putting forth the claim. It is important that you have all relevant documentation with which you can support your claim. Any lack of evidence may jeopardise your chances of getting what you deserve.

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

    How Does an Auto Insurance Claim Affect Future Premium?

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

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

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

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

    Important Information Regarding The Cancellation of a Car Insurance Policy:

    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:

    1. You intend on selling your vehicle to purchase a new one.
    2. Your vehicle is stolen.
    3. Your vehicle is too old.
    4. You are not satisfied with your present insurer.

    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.

    Refund and Certificate:

    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.

    Applying for a New Car Insurance Plan:

    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.

    Cancelling Car Insurance Renewal:

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

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

    The Importance of Insured Declared Value:

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

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

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

    IDV and premium:

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

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

    Points to note while declaring the IDV of your car:

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

    How Does Car Insurance Work When You Get Into an Accident?

    Indian Road Accidents

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

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

    When Should You Not Raise a Car Insurance Claim?

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

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

    Things to consider before filing a claim:

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

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

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

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

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

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


    Car Insurance FAQ's:

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

    ANS: 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.

    ANS: 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.

    ANS: 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.

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

    ANS:Copy of the Driving Licence of the individual driving the vehicle. Insurance Certificate.

    Copy of the vehicle's Registration Certificate.

    ‘Pollution Under Control' Certificate.

    ANS: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.

    ANS: 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.

    ANS: 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.

    ANS: 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.

    ANS: Brand and track record of the insurer. Coverage and the fine print.

    Customer service- both offline and online.

    Customization, perks and discounts.

    The clincher- Price!!

    ANS: 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.

    ANS: 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-

    Damage to third party property.

    Injury or death of a third party (individual(s)).

    Accidental death and/or permanent total disability of the insured vehicle's owner/driver.

    ANS: 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.

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

    Transfer of Policy (Sale of Vehicle)

    New RC duplicate copy /form 29-30

    Old policy document

    NOC from the last insured

    Transfer Charge - INR 50

    Duly filled new application form, collected from the company.

    Inspection of the car

    ANS: 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.

    ANS: 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.

    ANS: 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.

    ANS: 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.

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

    ANS: 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.

    ANS: 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.

    ANS: 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.

    ANS: 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.

    ANS: 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.

    ANS: 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.

    ANS: 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.

    ANS: 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.

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

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

    ANS: 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.

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

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

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

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

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

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

    ANS: 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.

    ANS: 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.

    ANS: 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.

    ANS: 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.

    ANS: 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.

    ANS: 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.

    ANS: 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.

    ANS: 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.

    ANS: 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.

    ANS: The following points can be quoted as the disadvantages of not having a valid insurance policy for your car:

    Invite penalties: Having a valid insurance policy for your vehicle is compulsory as per the Motor Vehicles Act, 1988. If you are driving without insurance, be prepared to pay a hefty fine for breaking the law.

    Pay third-party losses: Having car insurance ensures that the losses incurred by a third party on their property will be covered under the policy. The insurance company will cover the expenses that are to be borne by the policyholder. In case you do not have an insurance policy, you have to pay off the expenses from your own pocket.

    Pay for own losses: If your car was involved in an accident, there are high chances that your vehicle has undergone certain losses. No matter how small or big the loss is, you have to bear the expenses for the repairs if you don’t have car insurance. These expenses are covered under a comprehensive insurance plan otherwise.

    Legal complications: If your car does not have an active insurance plan, you might be penalised heavily and might also be imprisoned for not having an active policy. This is in addition to the financial loss that you have to bear to repair your vehicle.

    Loss of No Claim Bonus: If you had an insurance plan for your vehicle earlier and you decided not to renew it, you will be losing the No Claim Bonus (NCB) that might have accumulated in the past policy tenure.

    ANS: 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.

    ANS: 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.

    ANS: 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.

    ANS: 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.

    ANS: Yes, some insurance companies offer discounts up to 50% for people with physical disabilities provided that the vehicle is designed or modified for the use of the physically disabled.

    ANS: An insurance company covers the cost of ambulance as part of the medical expenses after a car accident. The cost for an ambulance ride is covered if it is medically necessary.

    ANS:Founded in 1966 and headquartered in Pune, the Automotive Research Association of India (ARAI) plays an important role in laying down rules and regulations for bringing more efficient, safe, and less polluting vehicles on the Indian roads. It conducts testing, research and development, homologation, and frames the rules and regulations pertaining to vehicles manufactured for India. It uses state-of-the-art technologies and qualified human resources to meet its objectives.

    Car Insurance - Do Not Miss!

    Calculate your Car Insurance Premium Easily:

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

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

    Zero Depreciation Cover - The Most Popular Add-on Car Insurance Plan:

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

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

    Maruti Car Owners, Your One-Stop Shop Destination for the Ultimate Car Insurance Package:

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

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

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

    Third-Party Car Insurance or Comprehensive Cover - Which One Should You Choose?

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

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

    Time to Renew Your Car Insurance? Here is All You Need to Know to Get it Done:

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

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

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

    Car Insurance Guide Page

    Trending Articles on Car Insurance 2018:

    • 3 ways to lower insurance premiums on your Maruti Suzuki WagonR

      Looking to save money on your insurance premiums? Here are three simple ways that work:

      • Buy models with advanced safety features or add them. This could include high-speed warning device, EBD, ABS, anti-theft device, etc. Premiums will be lower as the probability of accidents or damages are lower.
      • Avail the No-Claim Bonus. You get this if no claims have been made within a certain period of the policy purchase.
      • Use your Customer Loyalty Bonus points. You can avail this if you are a long-term customer or have taken multiple policies from the insurer.


    • 5 things you didn’t know about the Tata Nexon

      If you have your heart set on the Tata Nexon, you might like to know these interesting facts about the most awarded compact SUV of 2018. Here are 5 ways the Tata Nexon gives you more value for money:

      • It is available in 22 variants.
      • You have 6 colors to choose from.
      • An out-of-the-world music experience is guaranteed with the Harman 8-speaker system.
      • Never worry about your child’s safety again with the ISOFIX anchorage for child seats.
      • Dual frontal airbags are standard for the driver and co-driver.
      • Once you buy your dream car, don’t forget to insure it! Here’s all you need to know about Tata Nexon car insurance.


    • 3 Ways to protect your car tyres from punctures

      A punctured car tyre can throw you off your schedule and peace of mind. Here are a few tips to help protect your tyres from punctures:

      • Inspect your tyres monthly. This will help you notice any weak treads that can be fixed.
      • Choose tyres that have slanting surfaces and a higher grip.
      • Check tyre pressure regularly to make sure it is not lower or above the required pressure.
      • If you still get a punctured tyre after all this, here’s a step-by-step guide on how to fix it.


    • What happens if you accidentally fill the wrong fuel in your car?

      It’s easier to misfuel a diesel car than it is to misfuel a petrol car because of the difference in the size of the nozzle and the fuel tank opening. Petrol can damage a diesel engine because it lacks lubrication. Diesel in a petrol car can clog the fuel system and stall the car. Either way, don’t panic. Find out all that you can do to fix the situation here.


    • Installing a CNG kit in your car? Here’s what you should know

      A CNG kit is a cost-effective alternative fuel option for your car. Apart from improving the mileage of your vehicle, it is also environment-friendly. However, there are certain things you should bear in mind before you opt to install one in your car.

      This page elaborates on the licensing and compatibility of a CNG kit, the installation and maintenance process, and its repercussions on the insurance of the vehicle.


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

    Read Car Insurance news or Enjoy it on the go Google Play

    • Kia expecting the lack of an electric vehicle policy in India to not be a big roadblock

      South Korean auto giant Kia Motors is not very concerned about the lack of an electric vehicle policy in India. The company is hopeful that the country can quickly adapt from the existing global market for the market in the country. Kia Motors is confident that India will soon be following the global direction moving towards the use of eco-friendly technologies. The automaker has already announced its plans to launch electric and hybrid vehicles in the new plant built by the company in Andhra Pradesh. The company is looking to launch an electric vehicle in the country before 2021. Kia Motors is considering to bring their eco-friendly car line-up to the Indian market and is not very bothered about the government policies about electric vehicle policies that will be in place at that time. The company will release a car that meets the regulations if the government decides to fix a policy by then. Kia has been working on the development of a number of eco-friendly vehicles like the hybrid, full electric vehicles, and plug-in hybrid electric vehicles. They are currently looking to introduce 48 volts mild hybrid in the European market in the near future. Kia recently signed a memorandum of understanding with Andhra Pradesh and are now collaborating on Partnership for Future Eco Mobility. The company as part of this agreement will be providing the state government with three of the global eco cars of the company, namely a Niro Hybrid, Niro EV, and a Niro Plug-in Hybrid. The Niro EV has the capacity to travel a distance of upto 455 kilometers on a single charge.

      13 December 2018

    • Car insurance premium rates may come down starting FY21

      The premiums to be paid for your car and bike insurance may reduce starting from the financial year 2020-21. This is because the Insurance Regulatory and Development Authority is looking at a proposal that aims to refrain from fixing the premium cost for third party insurance. The Insurance Regulatory and Development Authority currently announces the fixed premium to be paid for a third party insurance and this value remains the same for all insurers. If the insurance regulatory authority removes the fixed rates, insurance companies can start to make their product more attractive by offering discounts on their products to compete in the industry against other competitors. It is well known that it is compulsory for every vehicle running on the road to have a third party insurance. The insurance regulatory authority for the current financial year has increased the third party premium by close to 28 percent. Many people have been demanding since then to reduce the steep increase in the premium. There is also a demand to fix the cap for premium and enable insurance companies to offer some discounts so that the policy buyers also get a lot more options to choose from. The regulator will be unable to make any changes right away as close to 8 months of the current financial year have already passed. It is to be noted that there are no fixed premium rates for own damage cover offered by insurance companies. Insurance companies offer large discounts on this part of the insurance.

      12 December 2018

    • Maruti offering big discounts on almosts all of the Maruti cars

      It is the last month of the year and the new year is almost here. This is the time many of the automakers offer a hefty discount on the vehicles before the start of the new year. India’s leading automaker Maruti Suzuki is planning to do the same as the company is planning to add a number of new customers by offering hefty discounts on almost all of its cars. The Maruti Suzuki Alto 800, the entry-level on offer from Maruti Suzuki will be offered at aa discount of up to Rs.60,000. The Rs.60,00 will consist of a Rs.30,000 cash discount and Rs.30,000 exchange discount, provided the car you exchange is less than 7 years old. The discount reduces to Rs.20,000 if the age of the vehicle is more than 7 years. Discounts up to Rs.80,000 is offered on the Maruti Suzuki Wagon R. A discount of up to Rs.40,000 is offered for all the petrol models of the car. This discount drops down to Rs.35,000 if the vehicle is a CNG Wagon R. The new AMT variant of the Wagon R will get a bigger Rs.45,000 discount. For vehicles less than 7 years old, an exchange bonus of Rs.35,000 is offered for AMT variants and Rs.30,000 is offered for both manual and CNG variants. The amount will drop down to Rs.25,000 for AMT and Rs.20,000 for the other variant if the vehicle is older than 7 years. Similar discounts are offered on all other models of Maruti Suzuki.

      11 December 2018

    • Nissan to launch SUVs and electric cars in India

      Nissan has announced that it will launch a whole new range of SUVs and electric cars in India. The Nissan Kicks was the first of the SUVs to be launched in the Indian market. The Pathfinder, Patrol, and Terra are others that are in the lineup to be launched in a couple of years’ time. Among electric cars, the Leaf and ENote is likely to be launched soon.

      10 November 2018

    • 2nd-Gen Honda Amaze recorded sales of 50,000 units in last 5 months

      The all-new version of the popular compact sedan of Honda, the Amaze, which was launched in the month of May this year, has posted a record sales of 50,000 units in last 5 months. As per the company, the new version of Amaze has contributed 50% of the total sales of HCIL during the period of April to September of the ongoing fiscal. Apart from attracting sales from 20% of the first-time buyers, this model has received 40% sales from Tier-1 cities and 30% each from Tier-2 and Tier-3 cities. The company is overwhelmed with the response that they have received from the customers. According to Makoto Hyoda, the Director of Sales and Marketing in HCIL, 30% of the buyers opting for the automatic petrol and diesel variants, shows that the customers have widely accepted the advanced CVT technology that the car is built-on. As a matter of fact, the 2nd-generation Amaze has been designed on an all-new platform keeping the needs and requirements of the Indian buyers under consideration. In fact, Honda has released the new Amaze in the Indian market first before its global launch.

      6 December 2018

    • Toyota to Launch 4 New Cars in India

      Toyota Motors will be working in collaboration with Maruti Suzuki to launch 4 new cars in the Indian market. Furthermore, both carmakers will also be working towards creating affordable electric cars in the country. Toyota plans to enter the SUV and hatchback segment of the Indian car market using Maruti Suzuki’s expertise.

      The Toyota Baleno will be launched sometime in 2019 with a few changes to its design and interiors. However, it will have the same equipment under the hood.

      The Toyota Vitara Brezza is expected to be launched in the middle of 2019 and will have minor changes in terms of the external design. It will have the same petrol engine as the Ciaz.

      The Toyota Innova Crysta facelift will be launched in India following its 2019 launch in Indonesia. It is expected to be launched in late 2019 or early 2020.

      The Toyota Fortuner facelift will also be launched in late 2019 or early 2020. There will be minor design changes and will be compliant with the BS6 norms.

      5 December 2018

    • More than 14,000 Units of the New Hyundai Santro Booked Already

      The new Hyundai Santro has already recorded more than 14,000 bookings within the first nine days of pre-bookings. The token opening amount for the vehicle is Rs.11,100. Despite the prices and the variant are still unknown, customers have gone for the top spec (Sportz) AMT version and the top sec (Asta) manual variant. Most of the bookings have reportedly been made from south Indian states such as Kerala, Karnataka, Andhra Pradesh, Telangana, and Tamil Nadu. These states have contributed towards almost half of the overall bookings thus far. These bookings were made from 9 November to 17 November. Although the figures regarding the sales on 18 October and 19 October – the dates on which Diwali was celebrated in Western and Northern India respectively, the overall sales figures have shot up considerably.

      4 December 2018

    • Skoda Announces Plans to Introduce New Hatchback

      Skoda has made an announcement saying that a new small hatchback will be introduced come the end of 2018. The car is called the Scala and it will hit European markets in the near future. The name of the vehicle is derived from the Latin word which translates to stairway or ladder. The vehicle based on the MQB A0 platform – the same one that may be localised in India by the Volkswagen Group come 2020. The design cues of the Scala will be derived from the Vision RS concept that was earlier on display at the 2018 Paris Motor Show. Skoda Auto’s chairman, Bernhard Maier, said that the introduction of the new hatchback will see the company propose a new chapter in its compact class.

      3 December 2018

    • Several New Cars and SUVs to Be Introduced in India During Early 2019

      The passenger car industry in India is expected to witness several new launches during the first 3 months in 2019. See the list mentioned below to learn about some of the most anticipated car launches that have been lined up for the first quarter of the year:

      Tata Harrier - This car will be based on the new platform named Omega Arc that has been derived from the Land Rover LS550. Expected to launch in January 2019, the Tata Harrier will be priced between Rs.14 lakh and Rs.18 lakh. Bookings of this car is currently open at Rs.30,000.

      All-New Maruti Suzuki Wagon R - This car will feature a tall-boy design, and will carry multiple design upgrades and premium features. Likely to be based on the new Heartect platform, the new Maruti Suzuki Wagon R is expected to be introduced in February 2019.

      Mahindra S201 - This new sub-4m SUV might be based around the Ssangyong Tivoli platform. The Mahindra S201 will feature two engine options - a 1.2-litre petrol and a1.5-litre diesel motor, and is expected to launch in March 2019.

      Nissan Kicks - With an estimated price of Rs.10-14 lakh, the new Nissan Kicks will have engine option between 1.5-litre petrol and diesel engine. This car is likely to launch in the country in January 2019.

      30 November 2018

    • Kia SP Concept-Based SUV Expected to Launch in India in 2019

      As per the reports, Kia Motors is planning to venture the Indian car market in 2019, and has announced that its first product offering will be the SP concept-based SUV. The company had held a naming contest earlier this year in order to decide a name for the new SUV. Even though many have been speculating that the production name of the car will be ‘Trazor’, Kia Motors has recently announced that the official name will be announced at the launch event of the SP Concept-Based SUV to be held during the second half of 2019.

      Unveiled at the 2018 Auto Expo, the Kia SP concept sports sharp styling features along with a squarish design that blends well with the signature 'Tiger Nose' grille of the company. The new car is expected to take most of its styling cues from the concept car. In terms of interiors, the Kia SP concept had a dual-tone scheme coupled with a wide touchscreen infotainment. The underpinnings, engines, and transmissions of the production-spec SUV is likely to be similar as that of the Hyundai Creta. This new SUV will compete with the likes of the Hyundai Creta, Tata Harrier, Renault Captur, and Nissan Kicks.

      29 November 2018

    • 2018 Mercedes-Benz G63 launched in India

      The Mercedes-Benz G63 AMG SUV is launched for the Indian market recently. Though this revamped version has retained all the earlier hallmark design it has received few cosmetic revamps in its exterior which LED headlamps, grille design, bumpers, and alloy wheel design. Moreover, the new version is more spacious than the earlier version and the interior retained all the pre-existing features. It is powered by a 4.0-litre twin-turbo V8 which has the capacity of delivering 576bhp/850Nm. The engine can reach 0-100 kmph in 4.4 seconds and attain a top speed of 220 kmph. As a matter of fact, this is the only G-Class model which is sold in India. The immediate competitions of this car are BMW X5 M, Jeep Grand Cherokee SRT, Porsche Cayenne Turbo, Lamborghini Urus, and the Range Rover Sport. It is priced at Rs.2.19 crore in its ex-showroom Delhi.

      28 November 2018

    Customer Reviews

    • Tata AIG Car Insurance
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It has been a good insurance policy and the premium has been paying annually. The premium amount has been nominal and the payment method has been easy. I had not yet made any claims so far and there has been cashless garages available as well....
      Was this review helpful? 0
      , bangalore
      Reviewed on Dec 14, 2018
    • Universal Sompo Car Insurance
      " Good protection for four wheeler"
      0.5 4.0/5 "Great!"
      All policies with Unviersal sompo, whenever I call they respond well on the toll free helpline. The policy covers fully my car compared to other insurer, the beginning it was zero depreciation plan, they gave me the insured declared value.
      Was this review helpful? 0
      , bangalore
      Reviewed on Dec 14, 2018
    • L and T Car Insurance
      "Its Good"
      0.5 4.0/5 "Great!"
      The dealer gave me L & T general insurance policy for my car the premium amount is nominal for the tenure of one year, I have old Tokyo Innova, hence I took comprehensive and third party cover, they do have road side assistance and 24 hours services on time.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Dec 14, 2018
    • ICICI Lombard Car Insurance
      "Good protection for four wheeler"
      0.5 5.0/5 "Blown Away!"
      From ICICI lombard I have taken car insurance for Hyundai I20, first time when I paid the around Rs. 25,000 when it was new car, now recently I paid is around Rs. 17,000 now its been 2.5 years old. The plan is called zero depreciation, with road side assistance, 24 hours services.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Dec 14, 2018
    • Bajaj Allianz Car Insurance
      "Low premium with better benefits"
      0.5 5.0/5 "Blown Away!"
      One more policy taken for my another car its Maruthi dezire I paid the premium around Rs. 4000 its a old car, around 6 to 7 years, I have comprehensive plan its not zero depreciation plan. The customer service is good the premium is low and the max cover is nice.
      Was this review helpful? 0
      , new delhi
      Reviewed on Dec 13, 2018
    • Bajaj Allianz Car Insurance
      "Low premium with better benefits"
      0.5 5.0/5 "Blown Away!"
      My both the polices are insured with Bajaj Allianz, I have taken one policy for my Maruthi Ciaz car, I paid the premium was around Rs. 8000, I have taken the comprehensive it covers for the loss, damage, other natural disaster, hence I am fine with them.
      Was this review helpful? 0
      , new delhi
      Reviewed on Dec 13, 2018
    • Tata AIG Car Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I hold a car insurance with TATA AIG general insurance from last 10 months, a premium of Rs 16000 has to be paid for this insurance policy. There was no claim experience so far with this insurance and this policy has full coverage with 0% depreciation.
      Was this review helpful? 1
      , bangalore
      Reviewed on Dec 11, 2018
    • Tata AIG Car Insurance
      "Complete protection with Tata Aig"
      0.5 5.0/5 "Blown Away!"
      I approached Tata Aig through their agent, he have taken initiative to generate the policy on time, I have received the policy document on time, the premium amt around Rs. 11k for one year, I have road side assistance with engine protection, tier cover with best insured value.
      Was this review helpful? 0
      , keonjhar
      Reviewed on Dec 10, 2018
    • Royal Sundaram Car Insurance
      "Good Product"
      0.5 4.0/5 "Great!"
      For my Maruthi car I took Royal sundaram general insurance through dealer I have approached the premium is reasonable, I don't think its a comprehensive plan. Once I had claim I met with the accident, there was a car damage, they gave 70% of claim, remaining I paid from my end.
      Was this review helpful? 0
      , bangalore
      Reviewed on Dec 07, 2018
    • Reliance General Car Insurance
      0.5 5.0/5 "Blown Away!"
      RELIANCE GENERAL INSURANCE is the insurer where i have taken my car insurance and the premium i paid which is nominal added on that the IDV value is also sufficient with this policy. The policy coverage is for bumper to bumper for this policy.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Dec 07, 2018
    • SBI General Car Insurance
      0.5 5.0/5 "Blown Away!"
      I had a claim of 44k with the SBI GENERAL INSURANCE where i have taken the card insurance and the claim is of reimbursement and i got within the one day. The premium is nominal and the IDV is nominal. The coverage is for bumper to bumper. The process is good with this policy.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Dec 07, 2018
    • ICICI Lombard Car Insurance
      "Good Protection for four wheeler"
      0.5 4.0/5 "Great!"
      The car policy with ICICI lombard is good and they are economical on the cost wise, I took policy for one year I took 100% its zero depreciation. They gave me best insured value based on the age of vehicle, they have ncb features and they many service centers too.
      Was this review helpful? 0
      , gurgaon
      Reviewed on Dec 05, 2018
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