Get complete information about the add-ons available to be integrated into your car insurance policy for additional coverage.
Set reminders for your car insurance renewal dates so you never miss your policy's renewal date. The early bird always stands to benefit.
False declarations will come back to haunt you. Your car insurance policy will lapse immediately if any incorrect information is found at any stage of your coverage period.
Some cars come with enhanced built-in security features such as anti-theft alarms, immobilizers and other systems that give potential thieves nightmares. With a low probability of theft, such cars can be insured for less premium. Note that only Automotive Research Association of India (ARAI) approved devices will fetch a 2.5% discount on your premium.
The city where a vehicle is registered determines premiums. Cars in metropolitan cities have to pay higher premiums as the incidence of vehicle thefts and accidents is higher.
Vehicle make and model and potential risk factors associated with it is a factor. For instance, some makes and models fare better in collisions than others so injuries to occupants and damage to the car would be less severe.
The insurance premium amount will always be less if you haven't made any claims before. The no-claim bonus percentage plays a major role in determining your premium amount. So think twice before scurrying to your insurer for a miniscule scratch or dent.
Additional cushions you may consider such as cover for CNG/LPG kits, key replacement costs, road-side assistance etc. will increase your premium amount.
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.
Car insurance is required mainly for the following reasons:
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.
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:
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.
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.
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 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:
In case you meet with an accident and there are damages to your vehicle or the vehicle or property of a third party, you will have to intimate the insurance company about the same at the earliest in order to claim insurance. In such a situation, the insurance company will provide towing services so that your vehicle can be taken to a Network Garage after an assessing officer is sent to inspect your vehicle and evaluate the estimated charges that you can claim.
In case of natural calamities such as floods, fire, earthquakes, hurricanes, landslides, etc., a comprehensive car insurance policy will cover the costs of repairs for you.
In case you incur any injuries due to an accident, a comprehensive car insurance policy will not only cover the costs to repair your vehicle, but will also cover the cost of hospitalisation and pay for your treatments, thereby significantly lowering your financial burden at such times.
In case of man-made hazards such as terrorism, riots, strikes, etc., having a comprehensive car insurance policy will come in handy as it will cover the cost of repairs.
If your car gets stolen, having a comprehensive car insurance policy in place will allow you to make a claim that will basically provide you with an amount equivalent to the Insured Declared Value of your car.
If you meet with an accident and cause damage to another person or property, a third-party liability insurance plan will ensure that you need not incur any costs on the treatment or repairs to the person or property. Your policy will take care of the costs.
The following are the general exclusions in car insurance:
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.
The following are the benefits of purchasing third-party car insurance:
The legal liability of the injured third party, including disability and death, is covered by a third-party car insurance policy. Even damages or losses to the property or vehicle of a third party are covered by a third-party car insurance policy. It basically takes care of the financial as well as legal burdens of the policyholder in such situations.
In case you meet with an accident and a third party incurs major injuries to his/her body in addition to damages to his/her vehicle, you will be burdened with legal as well as financial implications. The expenses you incur at times like these can be quite high. However, having a third-party car insurance policy in place will offer you peace of mind and take care of the legal and financial implications for you.
Third-party car insurance policies are easy to procure as well as renew. Thanks to advancements in technology, car insurance can now be purchased online from the comfort of your home or workplace. The process to purchase a policy is relatively simple and quick, thus ensuring that you do not spend much time or effort to protect yourself in case of emergencies.
Third-party car insurance policies are quite affordable. You can either purchase a third-party car insurance plan as a part of the main plan or as an add-on. Not only is it cost-effective, but also very beneficial when you consider the premiums and financial costs associated with it.
While some kind of insurance policies require you to visit a branch of the insurance company to purchase a plan, third-party car insurance can be purchased online at any time and from anywhere. Mobility and easy accessibility have made car insurance plans so much easier to purchase 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.
The following are the main benefits of purchasing comprehensive car insurance for your vehicle:
A comprehensive car insurance policy offers the highest level of protection. Unlike third-party liability insurance that only covers damages to a third party and his/her property, a comprehensive car insurance policy will cover damages to your body, vehicle, and property as well as third-party liabilities. If you meet with an accident and are covered under a comprehensive car insurance policy, you can rest assured that any injuries you sustain or damages to your vehicle will be taken care of by the insurance company.
In case your car ever gets stolen, your insurance company will reimburse you with the Insured Declared Value of the vehicle if you are covered under a comprehensive car insurance policy. If you had availed a loan to purchase the vehicle that got stolen, the insurance company will repay the remaining amount to the bank and you can apply for a new loan to purchase a new car with a clean slate.
The weather is often unpredictable, and if you reside in coastal areas in India, there are chances that your vehicle may be affected due to storms, cyclones, heavy rains, etc. In times like these, having a comprehensive car insurance policy in place will ensure that such damages are covered by the insurance company.
In case there are riots or protests in a location where your car was parked, your vehicle may be damaged due to vandalism. Whether the damage is just a few scratches caused by vandals or a broken windshield, a comprehensive car insurance policy will ensure that the insurance company will take care of these costs and you won’t have to bear any out-of-pocket expenses.
In case you meet with an accident and there are damages or injuries to the properties or lives of third parties, a comprehensive car insurance policy will lower your legal liability as well as your financial burden and take care of all the costs. Having a comprehensive car insurance policy will offer you peace of mind in such situations.
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:
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:
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:
One of the most successful and popular insurance companies in the private sector, ICICI Lombard General Insurance Company Limited was incorporated as a result of a merger with Fairfax Financial Holdings Limited. The company offers general insurance, investment management services, reinsurance, and insurance claims management.
The car insurance offered by ICICI Lombard General Insurance Company Limited covers loss or damage to your car as a result of natural calamities as well as man-made calamities and provides personal accident cover and coverage for third-party liability. The company has an impressive portfolio of insurance products, including two-wheeler insurance, car insurance, international travel insurance, home insurance, health insurance, and weather insurance. The company has gained a lot of customers due to their simple and hassle-free claim procedure.
Nationalised in 1972, the Government of India owns United India Insurance Company Limited. It is the second biggest insurance company in India, with premium worth more than Rs.16,000 crore. The company offers a variety of insurance products including insurance for private cars, commercial vehicles, and two-wheelers. You can also get discounts on used vehicles and anti-theft devices within the premises of the insured. Customers are provided with the freedom to avail a no-claim bonus which ranges from 20% to 50% of the premium based on the number of claim-free years.
HDFC Ergo General Insurance Company Limited is based out of Germany and was launched by HDFC Limited and ERGO International. HDFC Ergo General Insurance Company Limited has a variety of insurance products on its portfolio, including health insurance, two-wheeler insurance, car insurance, health insurance, liability-only policies, and commercial vehicle insurance.
A car insurance policy from HDFC Ergo General Insurance Company Limited provides cover for damages caused as a result of accidents, natural disasters, man-made calamities, terrorism, etc. HDFC Ergo General Insurance Company Limited has branches in 91 cities across India, making it easy for you to locate a branch when needed.
Established in 2000 by American International Group and the Tata Group, Tata AIG General Insurance Company Limited offers insurance products to individuals as well as corporates. The insurance products offered by Tata AIG General Insurance Company Limited include home/property insurance, automobile insurance, health insurance, travel insurance, marine insurance, etc. The company has a large network of brokers, agents, digital marketing, worksite, and telemarketing agents who distribute its products.
Established in 1947, the Oriental Insurance Company Limited is a the leading general insurance company in India’s public sector. The company is headquartered in New Delhi, with branches in Dubai, Nepal, and Kuwait. The Oriental Insurance Company Limited offers car insurance that provides cover for damages sustained in case of accidents or man-made or natural disasters as well as for the theft of your vehicle. The company has about 1800 branches in the country, and offers over 170 general insurance products.
Most people who purchase car insurance do so mainly as a formality because it is compulsory to have third-party liability insurance in India. More often than not, the main factor that people consider when purchasing car insurance in India is the cost of the premiums. It is important to note that a policy with a low premium may not provide adequate cover and you may end up spending money out of your own pockets in times of accidents.
When purchasing a car insurance policy, you are advised to compare different plans offered by different companies along with various parameters to ensure that you purchase a plan that best suits your insurance requirements. Here are some of the factors to keep in mind when purchasing car insurance:
If you are purchasing car insurance for the first time, you need to know all the important information regarding the various insurance plans available in the market. You will have to compare a number of plans to find the one that best suits your 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. The Claim Settlement Ratio is basically the number of claims settled by the insurer divided by the number of claims reported plus claims remaining at the start of the year minus claims remaining at the completion of the year. Another thing to check is the Claims Repudiation Ratio, which is basically the rejected claims divided by the total claims. You must also look for the Claims Pending Ratio, which is essentially the outstanding claims divided by the total claims.
Information regarding claims helps you analyse the history of claims of the insurance company along with its claims handling process. It is important to note that the Claim Settlement Ratio of companies that are relatively new will be lower. Claims data offers crucial information and enables customers to make informed decisions when selecting an insurer. In case you have shortlisted two or three insurance companies that offer similar benefits, analysing their claims data can help you settle on one.
The Indian Motor Vehicles Act and the Indian Road Safety Act have made third-party insurance mandatory. 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. Usually, the car dealer provides the insurance along with the vehicle and premium costs are added to the purchase price of the vehicle.
When you purchase a third-party insurance policy, you will be covered for damages caused to the vehicle or property of third parties. Whether you are the one who is driving the vehicle, or a friend, or a family member, or a hired driver, having a third-party insurance policy will provide cover for claims made by third parties for damage to their vehicle, bodily injuries, disability, or death. A third party insurance policy, however, does not cover damage to you or your vehicle.
When you purchase car insurance, you must go through the policy document and understand the following:
A comprehensive car insurance policy will provide greater coverage in comparison with a third-party insurance plan in case of accidents. 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. The premium charged on comprehensive car insurance policies is slightly higher in comparison with third-party policies, but it is worth going for a comprehensive policy considering the benefits on offer.
Purchasing add-on covers for your car insurance policy will provide you with sufficient cover against various situations in case of accidents. Your risk profile must be taken into consideration when looking for add-on covers. For instance, if you generally drive late at night or long distances, a roadside assistance cover could come in handy as you will have access to assistance even during odd hours if you are stranded in a deserted area.
Your car insurance plan will change with your life changes. 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 following are the events during which you can consider altering your insurance plan:
The credit-based insurance score of an individual can determine the premium rate applicable to him/her. The following are the factors that will determine your credit score in this aspect:
A personal accident cover will ensure you are covered against disabilities or physical losses during accidents. The personal accident cover can be availed for all the passengers in your car depending on the vehicle’s seating capacity. 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. Moreover, the claim process is certified and simple, and the premiums are relatively low. Customers don’t even need to take medical tests or provide any documentation for this cover.
Voluntary deductibles are a great way to reduce your insurance premium. 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. It is important to note that this feature can only be availed in comprehensive car insurance plans.
If you are purchasing a car for the very first time, your dealer will offer an insurance package with it. The package may not be the best suited to your insurance needs and neither would it be the least expensive option. You need to go compare quotes of various insurance policies along with the features and benefits on offer if you wish to find the option that is best suited to you.
Your vehicle’s Insured Declared Value and your premiums are interlinked. The Insured Declared Value of your vehicle is the maximum amount that can be claimed under your car insurance plan. For instance, the IDV of a new car will be higher in comparison with the IDV of a used car. Knowing about the IDV of your vehicle will help you better understand your premiums.
Your vehicle’s engine’s cubic capacity and your location are taken into account when your insurance premiums are calculated. If you live in a metropolitan city, you will find that the insurance premium for a vehicle of a certain make and model will be higher than the insurance premium for a vehicle of the same make and model in a rural or semi-urban area.
This is an add-on cover that can be purchased to supplement your car insurance policy. 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. The bonus can be as high as 50% depending on the number of claim-free years.
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. Since standard insurance policies do not cover all customised parts, it is essential to check with your insurance company before your customise your car.
Look for insurance companies and plans that offer the cashless claims facility as it comes in handy during times of emergencies. You won’t have to run around for cash as the policy will take care of the costs in case of accidents. However, the cashless claims facility should not be the only factor based on which you choose a car insurance policy, but if you find one with this option, it can be a big plus.
Most people tend to purchase car insurance policies that are offered for relatively low costs without even considering the company’s customer service. 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. It is important to go through the reviews posted by other people who have the same policy as they will tell you how efficient the company is in resolving queries and potential issues you may face. Look for companies that have a 24x7 customer care facility as it will be easy for you to reach them at any time in case of emergencies.
Keeping these points in mind when selecting an insurance policy can ensure that you pick the one that best suits your needs and you have minimal problems in terms of making claims or seeking assistance.
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:
Installing anti-theft devices in your car put you in good light so far as insurance companies are concerned. You will be considered as a responsible car owner as installing these devices means that you have done your best to increase the security of your vehicle. As such, car owners with anti-theft devices seldom report the theft of their vehicles, which means that car insurance companies have lower costs to incur. Since you bring down the liability of the insurance company, you will be rewarded in the form of attractive discounts on your car insurance premium.
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.
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 bankbazaar.com 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.
Your car is one of the most expensive purchases you would make in life. So, it is prudent to protect it with adequate insurance coverage. Apart from that, the Motor Vehicles Act, 1988, makes it mandatory for all vehicles in India to be equipped with a minimum of third-party liability insurance.
The cost of car insurance largely depends on the IDV of the vehicle, its model and age, the cubic capacity of the engine, and the geographical zone in which the car was registered. Almost all car insurance companies have an online premium calculator using which you can identify the amount of premium that you will have to pay towards a motor insurance policy. For premium calculation, you have to provide details such as the name of the car manufacturer, the model number, car sub-type, fuel type, date of registration, year of manufacture, etc. Once you submit these details, you will get an instant quote for the insurance.
At the time of an auto insurance claim that includes replacement of car parts, an insurance company calculates and applies the rate of depreciation to car parts before settling the claim. The depreciated amount will have to be borne by the policyholder. This is applicable to a comprehensive car insurance policy as well, because the coverage provided by such an insurance plan does not include depreciation on car parts.
However, a comprehensive car insurance policy can be enhanced through add-on covers by paying extra premium. One of the most popular add-on insurance covers in the auto insurance domain is the zero-depreciation cover. Also referred to as nil depreciation cover or bumper to bumper insurance, this add-on plan enables you to recover the entire cost of replacing car parts without having to pay for depreciation. This cover is only offered to cars that are less than 5 years old. This article educates you on the nuances of the zero depreciation cover.
If you own a Maruti car, then you should get it adequately insured through the solutions offered by Maruti Insurance Broking Private Limited. Maruti Insurance has tie-ups with renowned car insurance companies in India to provide you the best products and services.
While your car is insured with an appropriate auto insurance policy from Maruti Insurance, you can get it repaired at any of the Maruti Suzuki service centres throughout the country. These service stations offer advanced amenities and infrastructure to offer you a smooth experience each time.
You can also renew your existing auto insurance policy at the website of Maruti Insurance Broking Private Limited in a hassle-free manner. The claim process and the procedure for adding endorsements to your policy are quick and convenient as well.
Car insurance can be broadly classified into two types, i.e., comprehensive insurance and third-party liability insurance. If you are conscious about the cost of auto insurance and would like to limit it to a minimal level, then third-party liability insurance is the best option for you. Although it is the cheapest form of motor insurance, it has limited coverage. If you desire complete protection for your vehicle from accidents, thefts, man-made and natural disasters, and third-party liability, then you should buy a comprehensive car insurance policy.
This article explains the inclusions and exclusions in comprehensive and third-party liability insurance plans. It also enables you to get a detailed insight on these insurance schemes so that you are better equipped at the time of a policy purchase.
An auto insurance policy is a safety net that protects you, your family, and your cherished vehicle from unforeseen incidents like accidents, theft, loss of life, etc. So, it is imperative that your vehicle is equipped with adequate insurance coverage.
Buying auto insurance is important, but consistently renewing it without any gap in insurance coverage is what matters the most. An auto insurance company rewards a car owner for driving safely and not raising claims by offering him/her a No Claim Bonus. However, if you are not diligent in renewing your car insurance policy on time, you may stand to lose this hard-earned benefit that can actually bring down your renewal premium by up to 50%. Some insurers also refuse to renew the insurance of old cars that have a gap in insurance coverage.
This article educates you on the A-Z of car insurance renewal. You will also be enlightened on the pronounced advantages of renewing auto insurance online.Car Insurance Guide Page
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:
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 scene of the Indian autos has seen a major boost in the presence of almost all the important brands of the world. The most recent vehicle in the line is the Groupe PSA, which is believed to be making an entrance in India very soon.
DS, as is known, is essentially a sub brand of Citreon which was further created in order to challenge the supremacy of the German Trio in the market of Europe. The diesel incorporated in the DS 7 is 1.5 liter in weight while generating a maximum power of 130 BHP.
18 January 2019
Images of the cabin of the Mahindra XUV300 have been spotted. While variant details haven’t been revealed by Mahindra, it is expected to be the W4 variant of the XUV300. It is likely to be offered in four variants, the W4, W6, W8, and W10.
Expected to be launched by mid-February, the XUV300 will compete with the Ford EcoSport, Maruti Suzuki Vitara Brezza, and the Tata Nexon. Mated to a 6-speed manual transmission, the XUV300 will be powered by an 123hp, 1.5-litre diesel engine and a 1.2-litre turbo petrol engine.
17 January 2019
On the back of new car launches and a low base, car sales increased by 6.05% before July 2018, in what has been a volatile year. However, high fuel prices, regulatory changes, as well as the floods in Kerala have resulted in weakening of sales since July. According to the Federation of Automobile Dealers Association, sales fell by 14% during the festive season, which ended in early November. 30% of car sales happen during this period. Carmakers said that even though there was a reduction in fuel prices, factors such as insurance premiums and high interest rates failed to increase car sales for the month of December.
16 January 2019
South Korea’s largest carmaker, Hyundai Motor Company, has recorded its highest turnover and profit in India for the FY2018. While the turnover grew by 5%, the tax after profit, swelled by 8%. A car is produced every 33 seconds by Hyundai Motor Company.
Though the overall market grew by 8%, Hyundai Motor India sold 5.4 lakh units in FY18 with a growth of 5%. However, it recorded a growth in profit due to a higher capacity utilisation and a rich model mix.
15 January 2019
Nissan India is set to launch its latest entrant in the SUV segment, the Nissan Kicks, on the 22nd of January. The Nissan dealerships across the nation had started accepting bookings for the SUV last month. Interested customers are able to visit their nearest dealership or even the company website and book the Kicks with an initial payment of Rs.25,000.
The Nissan Kicks is based on the MO platform which is also shared by Nissan Terrano, Renault Duster, and Renault Captur. The Nissan Kicks will have both diesel and petrol variants. The petrol variant is powered by a H4K 1.5-litre petrol engine which produces about 106 PS of max power at 5,600 rpm and about 142 Nm of peak torque at 4,000 rpm. The diesel variant is powered by a K9K 1.5-litre diesel engine which juices out 110 PS of max power at 3,850 rpm and 240 Nm of peak torque at 1,750 rpm. Both the trims are two-wheel drive and are mated with a manual gearbox. The Nissan Kicks also gets some features which have been introduced in this segment for the first time. Some of these features include the 360-degree view camera and leather covered dashboard. Other features include rain sensing wipers, cruise control, ABS, EBD, airbags, and an infotainment system with smartphone integration.
14 January 2019
The Tata Harrier is expected to be launched on 23 January, 2019, and will be positioned as the company’s contender in the eternally growing mid-size SUV segment which also includes the Jeep Compass and Hyundai Creta. The vehicle will come with a 2.0-litre 140 hp diesel engine. The SUV is 1,706 mm high, 1,894 mm wide, and 4,598 mm long. Its wheelbase is 2,741 mm long. The vehicle will feature a Land Rover-esque Terrain Response controller which has multiple modes for the ESP system. Moreover, it will also feature the company’s Multi Drive 2.0 which consists of Sport, City and Eco models. The SUV will have an 8.8-inch infotainment display along with a 7.0-inch digital MID. So far as the safety features are concerned, the SUV will have 6 airbags, corner stability control, ABS with EBD, hill-hold and hill descent control, hydraulic brake assist, and a roll-over mitigation system. Totally, it will have 4 trims on offer, XZ, XT, XM and XE.
11 January 2019
The new flagship of the German automaker, the BMW X7, which is also BMW’s very first 7-seater in the segment, was seen testing on Indian roads for the first time as it prepares for its launch sometime in 2019. The vehicle made its international debut in 2018 and the all-new model is expected to compete with a number of other giants in the luxury SUV sector, including the Range Rover Velar, the Audi Q7 and the Mercedez-Benz GLS among others. The car was seen near Chennai, in a camouflage, implying that it could be assembled locally to ensure that costs are kept competitive. The car is based on BMW’s CLAR platform which also underpins the 5 Series, the 7 Series, as well as the new generation X3. In terms of visuals, the design quotient of the vehicle has been taken a notch higher with slim LED headlamps, huge kidney grille and muscular bumpers that feature wheel arches.
10 January 2019
Hyundai has recently revealed that it will begin to offer fingerprint recognition technology on its cars starting 2019. This technology will allow the owners to lock or unlock the doors, start the car, and set their seating position and side mirrors using their fingerprints. The South Korean automaker has stated that the 2019 Santa Fe will be their first model to receive the feature.
This technology will help the car owners to unlock as well as start their cars using just their fingerprints. The sensors will be installed on the door handles and the ignition switch. This will make keyless entry and ignition much easier and safer. With regards to the safety, the company has claimed that the fingerprint sensor has a 1 out of 50,000 chance of not recognising or mis-recognising a fingerprint. This success rate is 5 times better than the conventional vehicle keys or smart keys. Reportedly, the feature will be launched in some select markets at first. It will be rolled out in the international market gradually.
9 January 2019
The automobile industry has recorded better performances in the past as compared to 2018 due to a decline in the sales of passenger cars which hardly hit double-digit growth for several months. However, the industry’s enthusiasm has not been dampened and a number of new vehicles have been launched over the past few months. One of the best barometers of the local car industry was the Indian Car of the Year Award. Although the number of cars competing for the award wasn’t too high this year (8 to be precise, compared to 13 last year), the ICOTY award was given to Maruti Suzuki for the Swift. The Managing Director and Chairman of JK Tyre, Dr Raghupati Singhania presented the award to representatives from Maruti Suzuki India. The total number of points won by the vehicle was 125, 29 clear of the second-placed Hyundai Santro and well ahead of the Honda Amaze which finished third with 77 points.
8 January 2019
The 2019 Mahindra TUV300 facelift has recently been spotted in India when Mahindra & Mahindra was performing tests on the car. While the subcompact SUV is expected to make its way to the Indian market sometime during the first half of 2019, it is likely to feature a bunch of cosmetic changes along with a host of new and updated features. This is for the second time that the car has been spotted testing in the country within the last few months. Based on the spy images of the 2019 Mahindra TUV300 facelift, the SUV carries a new spare wheel cover with lesser panels, and reveals more of the tailgate-mounted spare wheel. While most of the car remains unchanged from the previous spy images that were released, the recent test mule appears to be sporting a newer set of alloy wheels.
The updated Mahindra TUV300 is also expected to feature new headlamps, LED daytime running lamps (DRLs), a revised grille, and a renewed bumper. The previous test mule also allowed a glimpse of the cabin which showed a new touchscreen infotainment system. Reportedly, Mahindra has made substantial investments towards the styling as well as technology and engineering aspects of the car in a bid to make the TUV300 a better product overall. The upcoming SUV might also be BS-VI compliant.
7 January 2019
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