Car insurance is mandatory for all vehicles that run on Indian roads. Given the large number of vehicles that have made their way to Indian streets, the need for insurance has also grown tremendously in recent years. Although the purchase of a new car can be exciting, it is important to consider potential accidents that may occur and damage your vehicle. In such situations, a car insurance policy can come in handy as it will significantly lower the costs incurred on repairing the vehicle or replacing its parts.
| Add-On Covers | How to Purchase | Inclusions & Exclusions | Types | Claim Process | Documents Required | News & Articles | FAQ's |
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Car insurance is required mainly for the following reasons:
Purchasing a car insurance policy can financially protect you as well as your vehicle in times of accidents. Given the rate at which new vehicles are entering Indian roads on a daily basis, having a car insurance policy in place is crucial as there are several perils of driving in the country. Here are five ways through which you can be protected with car insurance:
The following are a few add-on covers that you can purchase with your car insurance policy to make it more comprehensive and effective:
Zero Depreciation Cover
Purchasing this cover will ensure that you receive a full claim on the cost of the car parts replaced following an accident. This cover is usually provided only for the initial 3 years from the date on which the car was purchased. As the vehicle ages, the premium for this cover gets steeper.
Roadside Assistance Cover
In case you are faced with an emergency when driving in a remote area, the roadside assistance cover will provide you with access to services that can fix your problems as soon as possible.
Personal Accident Cover
A personal accident cover provides coverage to the owner of a car in case of accidents. If the owner of the car is driving it and meets with an accident, 100% of the claim amount will be provided to him/her in case of irreparable damage to limbs or death.
No-Claim Bonus
A no-claim bonus is a reward for policyholders who do not make any insurance claims over the course of a policy year. In such cases, this cover rewards them by providing discounts of up to 50% on the premium payment for the following year.
Engine and Electronic Circuit Cover
This add-on cover provides protection to the electronic circuit and the engine of the vehicle. In case of flooding, the engine can fail if you keep trying to run it, and this damage is not covered by regular car insurance policies.
Loss of Belongings
This add-on cover allows you to report claims because of loss or theft of your personal belongings. In case you leave your laptop or some other expensive equipment in your locked car and it gets stolen, this cover will reimburse you for the loss at least partly if not fully.
Daily Cash Allowance
In case your vehicle remains in a garage for about three to four days, the daily cash allowance cover will pay for your transportation costs. However, this cover is not too popular among Indian car owners due to the fact that repairs usually take just a day or two.
Key Replacement
In case you misplace or lose your car keys, having a key replacement cover will ensure that you are reimbursed for the cost of replacing the key. However, insurance companies do not reimburse the whole amount needed to replace the key.
It is very simple to make your car insurance policy stronger and have comprehensive coverage in difficult times. It is essential to consider the aforementioned covers as they will not only come to your rescue when needed, but will also lower the costs you would otherwise incur if you did not have them. However, not all add-on covers may be beneficial for you, so it is advised that you go through them carefully and pick the ones that could come in handy.
Car insurance can be purchased through agents, dealers, or brokers.
Agents
Insurance agents work with insurance companies and are paid by the company to sell their products to customers. As such, agents are experts so far as the insurance products offered by their employers are concerned. They have the ability and the expertise to guide you and help you choose the policy that best suits your needs. If you wish to change your insurance company, you should find another insurance agent who works with the company from which you wish to purchase insurance.
Dealers
Automobile dealers sell vehicles to customers, and these vehicles are sold with third-party liability insurance. Generally, dealers have tie-ups with insurance companies and may not be experts regarding the insurance policies. They take care of the paperwork associated with availing a third-party liability insurance policy sold by the dealership, but do not have adequate knowledge to guide you to find the policy that best suits your requirements.
Brokers
Brokers can either be individuals or companies that have a license from the Insurance Regulatory and Development Authority of India to sell insurance products. The products sold by brokers can be from various insurance companies as they have the expertise required to help you make an informed choice. They also offer assistance in after-sales service. Brokers can help you compare various policies in an effort to find the best one for you. Brokers can also assist you through the claim settlement process.
The cover offered by car insurance policies varies from insurer to insurer, but the most common inclusions and exclusions in car insurance are as follows:
| What is Covered (Inclusions) | What is Not Covered (Exclusions) |
|---|---|
| Cover for damages to your vehicle | Damages to vehicle when it was being used for illegal purposes. |
| Cover for damages caused by natural calamities | Accidents that are deemed fraudulent by the insurer. |
| Personal accident cover | Damages incurred by the vehicle when it was being driven by someone who was under the influence of alcohol or drugs. |
| Cover for damages incurred due to man-made disasters | Damages incurred by the vehicle when it was being driven by someone who does not have a valid driving license and who has not attained the legal driving age. |
| Theft | Damages incurred by the vehicle when the driver was breaking traffic rules. |
| Damages to property | Damages incurred by the vehicle when the car insurance policy had expired. |
Note: Each policy has its own list of exclusions that you are expected to read carefully at the time of purchasing one.
The two kinds of car insurance policies available to car owners in India include third-party liability and comprehensive insurance.
Third-party car insurance is a type of car insurance policy that covers the policyholder against legal liabilities that arise to a third party in case of an accident. If you are at fault in an accident and injuries are caused to a third party, or if their property is damaged, you will be covered by your third-party car insurance policy. Third-party liability is compulsory under the Motor Vehicles Act, 1988 for those who purchase, own, or drive a motor vehicle in India.
If you wish to get the best kind of coverage for your vehicle, a comprehensive car insurance policy is what you need. As the term suggests, the policy offers comprehensive protection. In comparison with third-party liability car insurance, a comprehensive car insurance policy not only covers the costs incurred on loss or damages to a third party’s property, but also covers damages to your own vehicle in case of an accident. It also offers a range of extensive services that cannot be availed through a third-party liability car insurance policy.
A comprehensive car insurance policy will cover damages caused by fire, vandalism, theft, severe weather, and natural disasters. It also covers damages to your car caused by falling objects like the branches of trees.
Benefits of Purchasing |
|
|---|---|
Third-party Car Insurance |
Comprehensive Car Insurance |
| Offers financial assistance and legal cover | Highest level of protection |
| Provides peace of mind | Easier to replace your vehicle if it gets stolen |
| Simple and quick procurement process | Cover for damages caused by natural disasters |
| Cost-effective | Cover for damages caused by man-made disasters |
| Easily available | Lower legal liability |
Car insurance is mandatory in India and is among the most commonly bought insurance products. The reason for an increasing number of people purchasing car insurance is the rising population which has a higher disposable income, thereby resulting in a higher number of cars on Indian roads. However, there are times where policyholders have no clue regarding the car insurance claim process. Here is a step-by-step guide to go about filing your car insurance claims:
| In Case of Damages to Your Own Vehicle | In Case of Damages to Third-Party Claims | In Case of Stolen Vehicles |
|---|---|---|
| As soon as you meet with an accident or notice damages to your vehicle, you will have to call the insurance company and intimate them about the damage. You will also have to furnish a duly filled-in claim form in addition to the necessary documents required by the insurer. The forms can be downloaded from the website of your insurance company. | In case you receive a legal notice from a third party, claiming reimbursements for damages caused by you, you will have to inform your insurer about the same. It is essential to speak to your insurer before communicating with the third party or making any out-of-court settlements or financial commitments to them. | If your car is stolen you will have to lodge an FIR by filing your complaint at the nearest police station. A copy of the FIR must be submitted to the insurance company. |
| A surveyor will be sent by the insurance company to assess the damages sustained by your vehicle. A report will be prepared by the surveyor and passed on to the insurance company. A copy will also be sent to you. | A copy of the legal notice must be sent to your insurance company. | After the final police report is sent to you, a copy must be taken and sent to your insurance company. An investigator will be assigned by the insurance company with whom you will have to cooperate. |
| In case of severe damages that require immediate repairs, the surveyor will arrive at the location of the accident as soon as possible, and your car can be sent for repairs after the surveyor has sent his report to the insurer. | Copies of the FIR, your driving license, and the RC book of your vehicle must be submitted to the insurance company. | Once your claim has been approved by the insurance company, the RC book of the stolen vehicle will have to be sent to your insurer. The owner’s name will be changed to the name of the insurance company. |
| Following the completion of repairs to your vehicle, the duly signed forms and documents must be taken from the garage and given to the surveyor who will send them to the insurer. | The documents will then be assessed by the insurance company and the details of the accident will be assessed and if they are satisfactory, the insurance company will appoint a lawyer for your case. | The duplicate keys of the vehicle will then have to be submitted to the insurance company along with a letter of subrogation. A notarised indemnity on a stamp paper must also be submitted to the insurance company. |
| If the documents and the claim are approved by the insurance company, your bills will be reimbursed by the company. | In case the court says that you will have to cover the damages caused to the third party, the insurer will make the payment to the third party. | Following the completion of the formalities, the claim amount will be disbursed by the insurance company. |
The following are the details/documents you will be required to send to your insurer when making a claim:
In case of accident damages, the following documents will be required to make a claim:
In case of theft of your car, the following documents will be required to make a claim:
With the number of car insurers higher than ever, it is important the different motor insurance policies and choosing the one that best suits your needs and convenience. Some of the benefits of comparing car insurance policies have been listed below:
If you wish to purchase a new car, you must also look at car insurance. It is essential to pick a reputed company in order to have a hassle-free experience when making claims. The following are the top five car insurance companies in India:
“Based on IRDA Annual Report 2017-18 on Net Earned Premium”
You will have to compare a number of plans to find the one that best suits your four wheeler insurance needs. You will have to consider various parameters such as the cost of premium, the claim settlement ratio of the company, the coverage provided, additional benefits, etc.
The Claim Settlement Ratio of an insurance company must be checked to ensure that you have a hassle-free claims process.
If you are purchasing a car for the very first time, the auto-dealer will offer you third-party insurance. If not, you will have to purchase it from a broker or insurance company.
You must go through the policy document to understand who is covered, how much coverage is provided, What are the exclusions, inclusions and etc.
Not only will it protect you and your vehicle, but will also take care of the claims made by third parties for damages caused to their body or vehicle.
Purchasing add-on covers for your car insurance policy will provide you with sufficient cover against various situations in case of accidents.
Experts say that you must evaluate your insurance plan on an annual basis to know if you have adequate coverage or you need more.
The credit-based insurance score of an individual can determine the premium rate applicable to him/her.
The benefits of purchasing this cover is that it provides global coverage and covers all legal expenses. It is also customisable based on the needs of the individual.
By going for this option, the cost of repairs during accidents will be shared between you and the insurer, thus meaning that you will have to pay a lower premium amount.
The package may not be the best suited to your insurance needs and neither would it be the least expensive option.
The Insured Declared Value of your vehicle is the maximum amount that can be claimed under your car insurance plan.
In case you do not make any claims over the course of a year, the No-Claim Bonus will offer benefits such as reduction in your premium amount.
Look for four wheeler insurance companies and plans that offer the cashless claims facility as it comes in handy during times of emergencies.
It is important to note that coverage is not offered for some vehicle parts under a regular car insurance policy. Engine parts or other mechanical parts may not be covered after they are modified.
When you purchase a car insurance policy, the customer support offered by the company is crucial to ensure that you don’t have any hassles in the future.
Car thefts in India have been increasing with the rise in the number of new vehicles, therefore making it essential to ensure that your car is protected at all times. One of the easiest ways to do so is through the installation of anti-theft devices. Not only will these devices increase your vehicle’s security, but will also reduce your insurance premium. Here are the 10 best anti-theft devices that can lower your car insurance premiums:
The following are the factors that affect your car insurance premiums:
Comprehensive policies, on the other hand, cover damages to your vehicle as well as third parties. Since a comprehensive car insurance plan offers greater coverage, the premium payment associated with it is higher in comparison with third party policies.
Thanks to advancements in technology, the internet has made it relatively easy to complete a number of tasks that would otherwise take a long time. Be it paying your utility bills or buying household items, you can do almost anything online. The insurance and banking sector has also taken well to the use of technology, and you can now renew your car insurance policy in a simple and hassle-free manner online. All you need is a laptop and an internet connection.
In this day and age, all major car insurance companies have their own websites where they allow customers to purchase and renew their car insurance policies. You no longer have to visit a branch of the insurance company to have your problems resolved. You can simply visit their website, browse and compare policies, calculate your premiums, and purchase or renew your plan from the comfort of your home or office.
Here are some important car insurance policy renewal tips:
Driving around without a valid car insurance policy can have legal implications. It means that you are putting it at further risk. In case you meet with an accident when driving around in an uninsured vehicle, you will be held responsible for any damages to third parties whether it is your fault or not. Considering how simple it is to renew your car insurance policy online, all you have to do is remember the date on which your policy is due for renewal and complete the task in a matter of minutes.
If you are not fully satisfied with your current car insurance policy, you can always go for another one when the first one expires. There are several insurers that offer car insurance for affordable prices. Make sure you compare multiple plans for the features and benefits on offer to find the one that best suits your insurance needs.
There are a few things that you must keep in mind at the time of renewing your car insurance policy. They are as follows:
You should never be in a situation where your car insurance has expired. It is important to ensure that your policy is renewed before the due date approaches. If you do not renew your car insurance plan on time, you will be faced with risks as well as penalties. For instance, you will not be covered for any damages to your vehicle once its insurance lapses. Even if your car catches fire or gets stolen, you will not receive any financial assistance, thereby making you incur significant losses that could burn a hole in your pockets. In case your policy expires, get in touch with your agent immediately. Also, make sure that you do not use your car when it is not insured as you could easily drive into trouble.
Yes. According to prevalent motor vehicles laws in India, every vehicle plying on Indian roads must be insured.
Q. Is it possible to purchase car insurance online?Yes. Infact, the option to buy car insurance online is often highlighted by most compliant insurers as a surefire means to stay covered 24x7 and never run out of the applicable coverage.
Q. How do insurers calculate the applicable car insurance premiums?When deciding upon the applicable premium amount, many factors are at play. Different companies charge different rates, based on differing criterias, when it comes to own damage cover. Also, deductibles and the IDV factor play a part when the premium amounts are decided upon. Shop around, and find a policy that best matches your requirements- ideally, avoiding a scenario wherein the premium might be less but the deductibles are high and the coverage and IDV are low.
Q. What is ‘No Claim Bonus'?No Claim Bonus, or NCB in car insurance is the benefit awarded to the insured for not making any claims during the previous policy period. Currently, this bonus ranges from 20% on the Own Damage premium upto a maximum of 50%. Note that this doesn't apply on liability premium.
Q. Is service tax applicable on the premium payments?Yes. The applicable service tax is in line with the regulations set by the Insurance Regulatory and Development Authority of India (IRDA).
Q. What documents must always be available in the vehicle for ready inspection?etting 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.
Q. What is IDV?The Insured's Declared Value (IDV) refers to the current market value of your vehicle as fixed by your car insurance company. The IDV comes in handy when claims are raised in cases of theft or total loss of the vehicle. Your insurer arrives at your vehicle's IDV by pitting the manufacturer's listed selling price against the commonly adhered to depreciation percentage.
Q. What is Zero Depreciation Cover?Commonly offered as an Add-On, the Zero Depreciation Cover offers full settlement on your claim without the usual deduction affected for depreciation (or periodic reduction in value of the vehicle/automotive parts due to natural wear and tear caused due to normal usage). Deduction due to depreciation is a common factor with the normal car insurance.
Q. Why car insurance premiums differ from company to company?Car insurance premium rates differ from one company to another based on their own internal protocols. The company calculates your premium based on these factors- a) The risk posed by you to the insurer, b) the insurer's operational costs, c) the estimated money that the insurer is likely to pay as settlement through the year.
Q. What are the factors to consider before buying a car insurance policy?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.
Q. What is covered under third party motor insurance?Third party motor insurance doesn't cover you and your vehicle. Its major purpose is to protect you against any liability that could arise from your vehicle's involvement in an accident that led to the loss, damage, injury or death of third party property or individuals. Summing up, the following is covered-
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.
Q. How do I go about transferring my car insurance from one firm to another?After informing your current car insurance provider, please submit the documents mentioned below.
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.
Q. Can I get medical cover for bodily harm or demise of the passenger(s) commuted in my car? Should I buy separate cover for that?This is exactly why third party cover is mandatory for all car owners. Car insurance is there to safeguard you when the unforeseen occurs. But when your own actions on the road cause a mishap, this cover becomes even more crucial. And yes, medical expenses are also covered in the third party car insurance, mandatory for all car owners.
Q. My car insurance policy application was rejected. What do I do?There are several insurance providers in India. You can compare various insurance policies online and apply for an insurance policy from a different provider. Third-party insurance plans are mandate for all vehicles in India. Therefore, you can purchase a third-party insurance and not have to worry about rejection.
Q. How does car insurance excess work?When you make an insurance claim, you will have to pay certain amount of money called the excess if the accident was caused by you. You will have a compulsory excess and a voluntary excess that will combined together to form your car insurance excess. Compulsory excess is the amount you have to pay when making a claim and voluntary excess is the amount you volunteer to pay towards the repair costs.
Q. How is car insurance cost calculated in India?The IDV and NCB is taken into account while calculating car insurance costs in India along with other discounts and offers.
Q. Do car insurance premiums increase after an accident claim?Yes, your car insurance premium is bound to rise after an accident claim. Even a single auto insurance claim will result in an increase in your premium for the following year.
Q. How does car insurance payments work?You have to pay a premium to keep your policy active. The company will send you a bill with due date and amount. You will be charged a service fee for the bill. You can go paperless to avoid the service charge. If you can't make full premium payments then you can opt for monthly, quarterly or semi-annual payment modes. Some companies offer grace period to pay your premium. If the premium is not paid within the grace period then your policy will lapse.
Q. How are car insurance claims paid?An insurance adjuster will assess the damage of your car and estimate of the repairs will be submitted to the insurance company. In the case of a cashless garage, the company will pay the garage directly. Otherwise, the claim settlement amount will be mailed to you in the form of a cheque.
Q. How are car insurance rates calculated?Car insurance rates are determined based on data such as your age, gender, marital status, driving experience, driving history, geographical location, claims, mileage, and credit score.
Q. How does car insurance work after an accident?If you aren't seriously injured, make note of the details of the accident. Seek medical help in the case of physical injuries to your body, co-passenger or third-party. File a police report. Contact your insurance provider, register a claim online or at the branch with a duly-filled claim form and the necessary documents to support your claim. The company will send an insurance adjuster to assess the damage and come up with an estimate of the repairs. After which, the company will follow up with the claim settlement which includes the excess you have to pay. The claim amount will be sent to you in the form of a cheque or paid to the garage directly in the case of cashless garage facility.
Q. How do car insurance companies make money?Insurance companies make money via strategic investment and risk management. The premiums paid by the policyholders are invested by the company in equity and money market instruments. Not every policyholder makes a claim, therefore it is a profit for the company if it doesn't have to settle any claims.
Q. How to make car insurance claims?Contact your insurance provider, register a claim online or at the branch with a duly-filled claim form and necessary documents to support your claim. The company will follow up with the claim settlement which includes the excess you have to pay to obtain the claim.
Q. How do car insurance deductibles work?Deductibles is the amount of money you agree to pay in the case of a loss or damage. For example: If your proposed deductibles is Rs.5,000 and the cost of repairs is Rs.8,000. You will have to pay Rs.5,000 and the insurance company will pay the remaining Rs.3,000. Higher the deductibles, lower the premium.
Q. Are car insurance premiums going up?The IRDAI has proposed up to 50% hike in premium rates for car insurance from April 1st, 2017.
Q. Are car insurance claims public record?our new insurance provider can obtain your insurance claim records from your previous insurance provider.
Q. Are car insurance claims taxable?As per Income Tax Act, 1961, car insurance claims are not taxable if the claim amount is obtained for damages caused due to riot, theft, floods, earthquakes, accidental fire or road accidents.
Q. Are car insurance payments tax deductible?Only if the car is used for business purpose will the car insurance premiums paid by you be tax deductible.
Q. Where do I get car insurance quotes?Car insurance quotes can be obtained online through the insurance company website.
Q. Where to check car insurance policies?You can check and compare car insurance policies on third-party websites like bankbazaar.com or the official websites of the insurance companies.
Q. Where is car insurance mandatory?As per the Motor Vehicle Act, 1988, a third-party insurance is mandatory for all running vehicles on Indian roads.
Q. What is an accident forgiveness option?After an at-fault accident, the accident forgiveness option ensures there is no increase in your insurance rate.
Q. Which car insurance companies are the best?ICICI Lombard, Bajaj Allianz, Reliance Car Insurance and Bharti AXA are some of the top car insurance providers in India.
Q. When does a car insurance policy expire?If your car insurance premium is not paid within the due date or provided grace period then your insurance policy will lapse. It's advisable to renew your car insurance policy by making premium payments on time every year.
Q. Why do car insurance premiums increase every year?Car insurance costs rises every year depending on the company costs in policy distribution, loss in investment, fuel prices, etc. Your insurance premium can go up depending on the age and value of your car, your driving history, and the claims made.
Q. What is the PUC Certificate validity for new cars in India?For old cars, i.e., the ones that were bought on or before 31 March 2010, the Pollution Under Control (PUC) Certificate should be renewed on a quarterly basis. The validity of the PUC Certificate for new cars is 1 year. Vehicles that were bought on or after 1 April 2010 are considered to be new cars under this classification.
Q. How many times can car insurance be claimed in a year?As long as a car insurance policy is in force, there is no restriction on the number of claims that can be raised in a year. However, the number of claims allowed under add-on covers like NCB protect, zero depreciation, etc. are limited. You can find more details on these limits in the policy documentation.
Q. What is the difference between salvage loss and total loss?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.
Q. What is a certificate of insurance?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.
Q. Is the insurance premium dependent on my city of residence?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.
Q. What is meant by policy term in car insurance?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.
Q. I have purchased a used car. Can the insurance of the previous owner continue while the car ownership has been transferred to my name?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.
Q. What are the disadvantages of not buying car insurance?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.
Q. My car insurance application was rejected. What should I do now?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.
Q. My car insurance policy has expired. Will my NCB be retained?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.
Q. What document should I submit to avail my No Claim Bonus?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.
Q. What type of insurance do I need if my vehicle has an additional CNG/LPG kit?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.
Q. Are there any special discounts on motor insurance for people with disabilities?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.
Q. Does car insurance provides for the cost of ambulance ride?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.
Q. What is ARAI?ounded 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 premium calculators are offered by the leading motor insurance companies in India to help the customers get an idea about the amount of premium that they will have to pay against a car insurance policy. Customers need to provide their name, address, and contact number along with the details of the car to be insured.
At the time of an auto insurance claim that includes replacement of car parts, an insurance company calculates and applies the rate of depreciation to car parts before settling the claim. The depreciated amount will have to be borne by the policyholder. This is applicable to a comprehensive car insurance policy as well, because the coverage provided by such an insurance plan does not include depreciation on car parts.
However, a comprehensive car insurance policy can be enhanced through add-on covers by paying extra premium. One of the most popular add-on insurance covers in the auto insurance domain is the zero-depreciation cover. Also referred to as nil depreciation cover or bumper to bumper insurance, this add-on plan enables you to recover the entire cost of replacing car parts without having to pay for depreciation. This cover is only offered to cars that are less than 5 years old. This article educates you on the nuances of the zero depreciation cover.
If you own a Maruti car, then you should get it adequately insured through the solutions offered by Maruti Insurance Broking Private Limited. Maruti Insurance has tie-ups with renowned car insurance companies in India to provide you the best products and services.
While your car is insured with an appropriate auto insurance policy from Maruti Insurance, you can get it repaired at any of the Maruti Suzuki service centres throughout the country. These service stations offer advanced amenities and infrastructure to offer you a smooth experience each time.
You can also renew your existing auto insurance policy at the website of Maruti Insurance Broking Private Limited in a hassle-free manner. The claim process and the procedure for adding endorsements to your policy are quick and convenient as well.
Car insurance can be broadly classified into two types, i.e., comprehensive insurance and third-party liability insurance. If you are conscious about the cost of auto insurance and would like to limit it to a minimal level, then third-party liability insurance is the best option for you. Although it is the cheapest form of motor insurance, it has limited coverage. If you desire complete protection for your vehicle from accidents, thefts, man-made and natural disasters, and third-party liability, then you should buy a comprehensive car insurance policy.
This article explains the inclusions and exclusions in comprehensive and third-party liability insurance plans. It also enables you to get a detailed insight on these insurance schemes so that you are better equipped at the time of a policy purchase.
An auto insurance policy is a safety net that protects you, your family, and your cherished vehicle from unforeseen incidents like accidents, theft, loss of life, etc. So, it is imperative that your vehicle is equipped with adequate insurance coverage.
Buying auto insurance is important, but consistently renewing it without any gap in insurance coverage is what matters the most. An auto insurance company rewards a car owner for driving safely and not raising claims by offering him/her a No Claim Bonus. However, if you are not diligent in renewing your car insurance policy on time, you may stand to lose this hard-earned benefit that can actually bring down your renewal premium by up to 50%. Some insurers also refuse to renew the insurance of old cars that have a gap in insurance coverage.
This article educates you on the A-Z of car insurance renewal. You will also be enlightened on the pronounced advantages of renewing auto insurance online.
As per the RTO rules, cars that are more than 15 years old cannot be used In India. Car owners can either sell their old car or can transfer it to another state and get a re-registration done. The re-registration must be done before the expiry of the Registration Certificate.
Car Insurance Guide Page3 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:
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 2019. Here are 5 ways the Tata Nexon gives you more value for money:
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:
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
The Insurance Regulatory and Development Authority (IRDAI) has proposed a plan to increase the liability rates of private two-wheeler and four-wheeler insurances. According to the proposal, the rates will be increased by anywhere between 4-21% for the financial year of 2019-2020. The highest rise of 21% will be seen in two-wheelers having an engine capacity between 150cc and 350cc.
The rate of insurance premium can go up to Rs.1,193 from Rs.985 which was the price in the previous year. For the cars having an engine capacity between 1,000cc and 1,500cc, the owners will be looking at a 15.26% increase. The premium according to the new rates will be Rs.3,300 from Rs.2,863 last year.
IRDAI has mentioned that the account data provided by the Insurance Information Bureau of India has been considered before arriving at these new rates. The claims paid data for the year of 2011-2012 to 2017-2018 has also been considered.
The premium segment of two-wheelers with an engine capacity of 350cc and cars above the engine capacity of 1,000cc have not been subjected to the rise in rates. IRDAI has also proposed a 15% discount on insurances from third parties for electric cars and electric two-wheelers. This has been done to encourage people to buy electric vehicles.
17 February 2020
It is important for your car to be insured by a motor insurance policy. Third party liability cover has been made mandatory by the Motor Vehicles Act, 1988. However, it is up to the owner of the vehicle to decide if he/she wants the own-damage cover. Procuring a motor insurance plan will be of great benefit in the long term as it can cover the cost of damages in case you meet with an accident. In case you own a classic or vintage car that requires special care, motor insurance is crucial for you. However, it is important to know that vintage cars and classic cars are different from one another. The India Motor Traffic says that vehicles that are manufactured before the 31st of December 1940 can be regarded as vintage cars if they are certified by the Vintage and Classic Car Club of India. Likewise, cars that are manufactured between the 31st of December 1940 and the 31st of December 1970 can be regarded as classic cars for the purpose of insurance.
14 February 2020
In Maharashtra, the State Transport Commissioner stated that Regional Transport Office (RTO) officials or traffic police personnel can seize vehicles on the spot if the owner is found without vehicle insurance cover. This is also applicable if the insurance cover has not been renewed after expiry. The Vahan software of the state transport department has now been linked to the National Insurance Database. This enables officials to confirm if a vehicle is insured or not by entering its registration number.
The Brihanmumbai Municipal Corporation (BMC) also revised parking fines. It also announced parking fee in Public Parking Lots (PPL) of Rs.100 for 6 to 12 hours, which is the base fee. It will charge up to Rs.4,000 as fines for illegal parking if within 500 metres of the city’s public parking lots and up to Rs.8,000 for illegal parking on any of the five arterial roads which were designated as no-parking zones in 2019.
7 February 2020
Under the Sandbox initiative of the Insurance Regulatory and Development Authority of India, Liberty General Insurance Ltd. Has come up with ‘Pay for the Distance’, an innovative feature that benefits owners who infrequently use their cars. Customers will basically have to pay based on the distance they drive. Insurance costs will be controlled by this feature, and the feature will only apply to the Own Damage part of the plan, but Liberty General Insurance will offer Third Party Liability to customers over the course of the policy period. The plan will have a top-up feature that allows policyholders to reinstate the Own Damage coverage by raising the number of kilometers. To do so, however, an extra premium must be paid in case of the exhaustion of the maximum kilometer limit availed under the new feature. Moreover, the company will also offer extra Voluntary Deductible slabs as well as In-built Roadside Assistance cover. Customers can only avail these features if they buy the plan directly from Liberty General Insurance via its online portal.
4 February 2020
The Indian government is doing its best to ensure that all the vehicles that run on Indian roads are insured. Now, a pilot scheme is being worked out by the Insurance Regulatory and Development Authority of India in states such as Rajasthan, Telangana, Bihar and Karnataka. The aim of the scheme is to extract information regarding vehicles that are insured and those that are not. Messages will be sent by the government to vehicle owners who do not have insurance. 2-wheeler insurance was made mandatory for 5 years by the Supreme Court in 2018. For 4-wheelers, the mandatory insurance period was 3 years. In case of defaults, a fine of up to Rs.2,000 could be levied.
India is among the nations with the highest number of deaths as a result of road accidents. In 2018, 1,51,417 deaths were reported because of road accidents, marking a rise of 2.3% in comparison with the previous year. Data shows that around 40% of the vehicles on Indian roads have no insurance. The highest compliance is from commercial vehicle owners, with 80% of them being insured, but the compliance figures for other vehicles does not look great, and the government is implementing measures to correct the same.
30 January 2020
According to Moody’s Investors Service, a global ratings agency, the current economic slowdown will impact the collection of insurance premiums over the next two to three years. For the year that ended in March 2019, the collection of insurance premiums reduced marginally.
However, the reduction in collections for general insurance was much higher. The GDP growth of India is estimated to have come down by around 5% in 2019-2020. The number that has been pegged by the International Monetary Fund is 4.8%. The reduction is expected to bring down global growth as well. According to a report made by the rating agency, the insurance premium growth is expected to be slower over the next two to three years due to a moderate expansion growth in India. In 2018-2019, the total insurance premium increased by 11.3%. The insurance premium growth was at 11.5% the previous year. However, the agency said that the low penetration indicates a further growth penetration in the market. Due to the launch of the National Health Protection Mission, health premiums may continue to rise. Under the scheme, a cover of up to Rs.5 lakh is provided to over 100 million families.
27 January 2020
Car insurance providers will now offer the single owner of multiple vehicles the option to issue coverage in line with the expected use of each car. So, for the first time, car owners will have the option to purchase a single car insurance policy for multiple vehicles that they own, with various sub-limits for each vehicle. Insurance provider ICICI Lombard is introducing the ‘floater policy’ option which will let customers enhance their sum insured as they will not be driving two vehicles at the same time. The ‘single owner, multiple vehicle’ floater policy of ICICI Lombard is an app-based interface which will allow multiple vehicles to be linked together and provide coverage. The ‘floater’ concept is presently available in health insurance policies for families to purchase a single sum insured for the members covered. Under one floater policy, three to four cars can be covered. ICICI Lombard is in the process of developing the prototype which will be evaluated after six months.
21 January 2020
The Insurance Regulatory and Development Authority of India has taken a hard stance on auto companies that control the distribution of insurance via broking companies. The regulator, in December last year and January this year, penalized a number of insurance broking companies such as Maruti Insurance Brokers, Toyota Tsusho Insurance Broking, Hero Insurance Broking and others that were all tied up with auto manufacturers. The penalties imposed were between Rs.1 crore and Rs.3 crore. Brokers such as Aditya Birla Insurance Brokers and SMC were also fined for dealing with auto manufacturers. According to insurance officials, fining brokers for carrying out business with certain companies has the potential to aid more than 20 companies. It could also benefit customers as the upstart companies would quote lower rates in comparison with the older firms.
20 January 2020
The cutting down of production days by various automobile manufacturers has positively resulted in the inventory levels in the two-wheeler and passenger car segments coming down. This has resulted in a smoother transition to BS-VI vehicles. However, there is still a high level of unsold inventory, which the commercial vehicles are yet to see relief for.
The inventory level for passenger cars was once 30-35 days which dropped to 25-30 days in the month of October 2019. The reduction in the two-wheeler segment also dropped to 30-40 days from 50-60 days. The dealers are moving with the hope that there will be a drop in inventory in all three categories which are two-wheelers, passenger vehicles, and commercial vehicles. The emission transition will result in an inventory increase and would ultimately result in lower wholesale dispatches in the third quarter of FY20.
According to Mr. Mitul Shah, Senior Research Analyst, Reliance Securities, post the destocking of inventory, the existing inventory fell lower than normal for many dealers leading to the smoother transition to BS-VI. The commercial vehicle segment showed the highest decline of 15% with the passenger vehicle segment showed a flat decline of 0.8% year-on-year. Scooter and motorcycle volumes also declined 12% per Y-o-Y and 15% respectively.
The organization has asked members to tread carefully especially about the inventory and costs during the times of fluctuating consumer sentiment and declining economic condition. The upcoming BS-VI norms will be scheduled for implementation from April 2020 to ensure zero financial loss to its members during the current times.
20 December 2019
The Insurance Regulatory and Development Authority of India (IRDAI) has cleared questions around the purchase and renewal of own damage (OD) insurance covers for vehicles insurance. The new guidelines were effective from September 2019 with several ambiguities around whether an OD policy had to be bought after buying a third-party cover and also around what would happen if the OD policy was not renewed on expiry of a one-year cover but is bought afterwards. The latest draft proposal answers these questions and clears these doubts. According to it, a standalone OD cover is permitted in cases where a long-term liability policy is mandatory. However, the expiry date of the OD cover should not be after the liability policy expires. If the vehicle owner has opted to buy an OD policy separately and also has the compulsory third-party cover, or has renewed the 3-year third-party cover along with the bundled cover, or has a one-year term OD cover for their vehicle, then details of the third-party insurance in the OD policy has to be mentioned by insurers. The OD policy schedule is meant to have all the details pertaining to the liability policy, which should include the policy number, name, and period. This makes the process of claims filed by a third party easier and faster. It will also increase the compliance of having third-party liability cover.
18 December 2019
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