All cars operating on Indian highways must be insured. The need for insurance has increased significantly in recent years as a result of the enormous number of vehicles that have entered Indian streets. It's crucial to think about potential collisions that can happen and harm your car. A car insurance coverage can be helpful in these circumstances as it will greatly reduce the costs associated with repairing the automobile or replacing its parts.
| Insurance Provider | Claim Settlement Ratio | Number of Cashless Garages |
| Royal Sundaram General Insurance | 92.66% | 4,600+ |
| HDFC ERGO General Insurance | 91.23% | 7,600+ |
| IFFCO Tokio General Insurance | 96.80% | 4,300+ |
| The Oriental Insurance Company | 91.76% | 3,100+ |
| Tata AIG General Insurance | 98% | 5,400+ |
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 |
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 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 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.
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:
Given below are the steps to renew your car insurance online:
Step 1: Visit the car insurance renewal section of your insurer.
Step 2: Enter the details like your name, date of birth, policy number, etc., and submit.
Step 3: Select the car insurance plan you wish to buy.
Step 4: Choose the add-on covers or riders that you wish to purchase (if required).
Step 5: The premium amount payable will be displayed on the screen.
Step 5: Make the premium payment via net banking, debit card, or credit card.
Step 6: Your car insurance will be renewed after you complete the payment.
Agents
Insurance agents are employed by insurance firms and receive compensation from them for promoting their services to customers. Agents are knowledgeable about the available insurance packages. They are qualified and experienced to advise you and assist you in selecting the insurance plan that best meets your needs.
Dealers
Customers purchase vehicles from auto dealers, and these purchases include third-party liability insurance. Dealers frequently have relationships with insurance providers but may not have a thorough understanding of the plans. They handle the administrative tasks necessary to obtain a third-party liability insurance policy offered by the dealership.
Brokers
Brokers can be either individuals or businesses that are authorised to offer insurance products by the Insurance Regulatory and Development Authority of India. Brokers can sell products from a variety of insurance providers because they have the knowledge necessary to support your decision-making. They also assist with post-purchase support. Brokers can assist you in your search for the best policy for you by comparing a variety of options. Brokers can help you with the claim-settlement process as well.
For damage occurred to your car, the car insurance claim process is as follows:
Step 1: You must notify the insurance provider as soon as you are involved in an accident or observe damage to your car by calling them. Along with the essential paperwork requested by the insurance, you must also provide a properly completed claim form. You can get the forms from your insurance company's website.
Step 2: The insurance provider will send a surveyor to evaluate the harm done to your car. The surveyor will write a report and provide it to the insurance provider. You will receive a copy as well.
Step 3: 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.
Step 4: If the documents and the claim are approved, a delivery order (DO) will be provided by the insurer in case of cashless claims. Once you pay your car repair bills, you can take your car.
Step 5: You can bring your car to the shop and get reimbursed by paying the fee. Depending on your auto insurance policy's terms and conditions, you may later receive a refund for this sum.
The car insurance claim process for a third-party claim is as follows:
Step 1: You must let your insurer know if you receive a legal notification from a third party demanding compensation for damages you are responsible for. Before speaking with the third party or agreeing to any out-of-court settlements or financial obligations with them, it is crucial to contact your insurance.
Step 2: A copy of the legal notice must be sent to your insurance company.
Step 3: Copies of the FIR, your driving license, and the RC book of your vehicle must be submitted to the insurance company.
Step 4: The insurance company will review the records and the accident's specifics after that, and if they are satisfactory, they will assign a lawyer to represent you.
Step 5: 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.
The car insurance claim process for stolen car is as follows:
Step 1: If your car is stolen you will have to lodge an FIR by filing your complaint at the nearest police station.
Step 2: A copy of the FIR must be submitted to the insurance company.
Step 3: 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.
Step 4: After your claim is approved, you should submit your stolen car’s RC book to your insurer.
Step 5: The owner’s name will be changed to the name of the insurance company.
Step 6: The replica car keys and a letter of subrogation must then be delivered to the insurance provider. The insurance firm must also receive a notarized indemnification on stamp paper.
Step 7: Following the completion of the formalities, the claim amount will be disbursed by the insurance company.
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.
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 up to a maximum of 50%. Note that this doesn't apply to liability premium.
Q. What must I do if I lose my insurance policy?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 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. How to calculate car insurance premiums?The simplest way to calculate your car insurance premiums is with a good Car Insurance Premium Calculator. While most lending banks offer this facility on their websites, competent third party calculators are also readily available.
Q. Can I get medical cover for bodily harm or demise of the passenger(s) commuted in my car? Should I buy a 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. 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 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. 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 is ARAI?Rounded 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.
GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017
The Central Government has recently drafted a notification stating the intentions of increasing the insurance premium for third-party car insurance plans.
The rates were last revised in June 2019 and will be revised again this year. As per the latest notification, the annual base premium for the insurance plans for ICE powered cars has been increased to Rs.2,094 for vehicles under 1,000 cc. It will go all the way up to Rs.7,897 depending on the cubic capacity of the engines. It should be noted that the said rates are applicable only for basic cover and car owners will be required to shell out more money in case they want to add rider benefits to their insurance plans. 3-year plans will also be provided for the cars starting at Rs.6,521 and going up to Rs.24,596.
02 June 2022
Edelweiss General Insurance has launched AI Voice Bot to provide its customers with a convenient motor claim process. The bot currently has three language options, namely, English, Hindi and Hinglish and will accept real-time claim registrations 24x7. The bot has been introduced to garage owners right now and will be offered to customers within two months' time frame.
07 February 2022
About 25 General Insurance Companies have requested the Insurance and Regulatory Development Authority of India (IRDAI) to grant them permission to hike the premium prices of third-party motor insurance by 15-20%. The companies are increasing the premium prices because their solvency has declined.
A significant increase in third party motor insurance claims has been noted. Following a Supreme Court order in 2018, two-wheeler owners must have a five-year third-party insurance policy, while four-wheeler owners must have a three-year policy. The two-wheelers registered in 2022 will be given an insurance cover till 2027.
According to the Motor Vehicle Act, it is mandatory for every motor vehicle owner to have a third-party insurance cover. The insurance premium is fixed by the IRDAI and is reviewed every year. However, amid the COVID-19 pandemic, the prices of premiums remain unchanged over the past two years.
13 January 2022
Volvo will hike the ex-showroom car prices between Rs.1 lakh to Rs.3 lakh. The revised prices will be effective from 1 January 2022.
Given below are the revised prices for various models of Volvo cars:
XC40 T4 R Design petrol: Rs.43.25 lakh (price change – Rs 2 lakh)
XC60 B5 Inscription petrol mild-hybrid: Rs.63.50 lakh (price change of Rs.1.6 lakh)
S90 B5 Inscription petrol mild-hybrid: Rs.64.90 lakh (price change of Rs.3 lakh)
XC90 B6 Inscription petrol mild-hybrid: Rs.90.90 lakh (price change of Rs.1 lakh)
Volvo India is switching to an all-petrol portfolio after discontinuing the manufacture of diesel models. The prices for luxury sedan S60 and Plug-in hybrid XC90 T8 will not be hiked.
6 January 2022
Tata Motors became the second bestseller for the last month of 2021, beating Hyundai in domestic sales volumes. Tata Motors registered 35,299 units of passenger vehicles in the month of December 2021. Out of these units, 2,255 units were passenger electric vehicles.
3 January 2022
Kia India unveiled the three-row Carens a few weeks ago. The car manufacturer announced that the Carens will be available for official booking from 14 January 2022. The prices for the model will be announced in the next few months.
The Carens comes with a new design featuring a new front fascia with a split headlamp setup. The car will comprise 16-inch five-spoke alloy wheels and split taillamps with generous plastic cladding and chrome accents at the rear. As per the claims of Kia, the Carens will feature the longest wheelbase in its segment.
Other features include a 10.25-inch touchscreen infotainment system, ambient lights, a wireless charger, and a single-pane electric sunroof. The Carens will also be equipped with safety features like six airbags, four disc brakes, a tyre pressure monitoring system hill-start and descent assist, and rear parking sensors.
31 Dec 2021
Edelweiss General Insurance (EGI) has teamed with PhonePe, a fintech business specialising in digital payments, to provide all of its customers with quick and easy digital motor insurance solutions. Through this collaboration, EGI will reach out to the growing customer base of PhonePe.
23 Dec 2021
The Government of Maharashtra has now entered into Memorandum of Understanding (MoU) with Tata Motors to establish a Registered Vehicle Scrapping Facility (RVSF). They will set up centres with the partner and are set to have a recycling capacity of 35,000 vehicles every year.
22 Dec 2021
In October 2021, Tata Motors launched the Punch subcompact SUV in India. The price for Punch and other models will be hiked in January 2022. The revise prices will be announced soon.
21 Dec 2021
As per the announcement made by Toyota Kirloskar Motors, the Toyota car price will increase from 1 January 2022 due to a hike in the material and input costs. The move has been taken considering the rise in production cost.
17 Dec 2021
Kia is going to unveil its fourth model, the Carens in India on 16 December 2021. The launch of this model is scheduled for early 2022. The Carens will comprise a signature tiger-nose grille moved further down on the bumper, a split headlamp setup, wraparound LED tail lamps along with a connecting light bar, and five-spoke alloy wheels.
The Carens cabin’s dashboard design will have a free-standing touchscreen infotainment system, a new logo, and a contrast colour insert. The car will also include features like wireless charging, a driver seat that can be adjusted electrically and an electric sunroof. The Carens is expected to have an ex-showroom price range of Rs.15 lakh to Rs.18 lakh.
16 Dec 2021
Mahindra is offering its customers such as corporate offers, exchange benefits, and cash discounts for the month of December. These benefits will be available on Bolero, Marazzo, Scorpio, KUV100, and XUV300.
Mahindra XUV300 is offered with a cash discount worth Rs.30,000, along with corporate benefits and an exchange bonus of up to Rs.4,000 and Rs.25,000, respectively. A total benefit of Rs.69,000 can be availed including additional offers and accessories of up to Rs.10,000.
MBuyers of Mahindra Marazzo will get a cash discount of up to Rs.20,000. There is also a corporate benefit of up to Rs.5,200 and an exchange bonus of up to Rs.15,000 bringing the total amount to Rs.40,200. A cash discount of up to Rs.38,055 will be offered on Mahindra KUV100 NXT along with a corporate benefit of up to Rs.3,000 and an exchange bonus of up to Rs 20,000.
Buyers can avail of an exchange benefit of up to Rs.15,000 on the Mahindra Scorpio. A corporate benefit of Rs 4,000, additional offers and accessories worth Rs.15,000 will also be available. However, Scorpio doesn’t have any cash benefit. Mahindra Bolero is being offered an exchange bonus of up to Rs.10,000. A corporate benefit worth Rs.3,000 will be offered but there are no additional offers or cash discounts.
15 Dec 2021
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