SBI Car Insurance

Overview

SBI General Insurance is the brainchild of India’s leading banking institution, the State Bank of India, and the Australian financial protection provider, Insurance Australia Group (IAG). Their stakes in SBI General Insurance are 74% and 26% respectively.

SBI is one of the ‘Big 4’ banks in India and is unmatched in terms of reach with over 17,000 nationwide branches.

IAG is one of Australia’s premier general insurance companies with operations stretching across international borders to UK, New Zealand and Asia.

SBI General benefits from the ground-level market knowledge, reach and distinct reputation of SBI and the managerial and sector expertise of IAG. This cross-border alliance covers a large number of SBI’s banking customers as well as a large number of non-banking individuals through it’s strong distribution network which comprises of bancassurance partners, agents, brokers and retail partners. The company’s reach extends to over 350 areas. It’s product bouquet services retail and corporate customers as well as small and medium enterprises. They offer individual protection on vehicles, health, homes, travel and against personal accidents, in addition to group and enterprise solutions to business houses.

What does it cover?

All liabilities and amounts payable towards third-parties as awarded by the Court in the event of damages caused by the insured.

Losses caused unto the insured either by way of death/ bodily injury or property impairment i.e. own-damage liability. Situations wherein this can occur include fires, natural disasters, mishaps during transit, theft, civil unrest, war, terrorism and related acts.

Losses in the event of personal accidents:

• The owner is recompensed for expenses within a limit of Rs.2 lakhs.
• Passengers, other than the owner-driver can also make claims as per this feature provided they are individually insured for Rs.2 lakhs, at maximum. (The said limits can be enhanced as per specifications).

For increased premiums the following benefits can be availed of:

• Depreciation waiver on replaced parts (not applicable for total loss). CNG-LPG kit cover i.e. the bi-fuel kit.
• Protection of No-Claim Bonus whereby the NCB benefits accrued or due will continue irrespective of claims made based on the following conditions:
• The policy is renewed with SBI General Insurance i.e. the policyholder does not switch to another insurer.
• Only one claim was made during one policy period.
• Repairs were undertaken in a network garage.
• The amount of discount on renewal will be the same as that awarded before the claim.
• Replacement of keys: In the event of lost or stolen keys, amounts spent to make duplicates or repair broken locks at authorised garages will be reimbursed within specified limits i.e. 10% (with co-payment of total costs) or Rs.500, whichever is higher.
• Recompensing paid employees: These are the legal dues payable to either the hired driver or employees (of the policyholder) who were passengers or were driving the car at the time of the accident
• Personal belongings cover: Under this, losses pertaining to damaged or lost belongings in the car, of the insured party only, will be recompensed for up to Rs.50,000 (subject to deductibles ranging between Rs.500 to Rs.5,000).
• Invoice Value: An advantage of the offer, this will allow the insured to receive, from the company, the difference between the claim payout and the actual value of the car (the actual value being the amount paid as evinced by the original invoice).

What are the exceptions?

While comprehensive in nature, there are certain exclusions to the cover provided under this plan. The common ones are highlighted below:

• Loss in value as a result of the vehicle’s age progression.
• Consequential loss.
• Mechanic or electric fallouts.
• Losses from using the vehicle over it’s determined limits and outside specified boundaries (locations).
• Damages caused while driving without a valid license or while intoxicated.
• Damages caused by a driver without the requisite authority.
• Eventualities of war and nuclear activities.

How is the policy priced?

A unique feature providing flexibility to the customers.

• Policy costs are determined according to individual customer profiles thereby rewarding low-risk clients.
• Discounts are offered to entrants aged between 36 years - 60 years.

What is the sum assured?

The sum assured, also known as the IDV or Insured’s Declared Value, is based on the manufacturer’s selling price adjusted for depreciation.

For constructive or total loss the below scheduled is followed. It indicates the percentage of depreciation to be adjusted in order to arrive at the IDV, based on the age of the car.

• 5% up to 6 months
• 15% between 6 months and 1 year
• 20% between 1 year and 2 years
• 30% between 2 years and 3 years
• 40% between 3 years and 4 years
• 50% between 4 years and 5 years

As agreed between the insurance company and the insured for automobiles over 5 years old (and obsolete makes).

What kind of discounts are offered?

• After every policy period that is completed claim-free.
• Upon renewal (within 90 days of policy expiry).
• Up to 50% of premiums due.
• Even upon transfer of no-claim benefits from or to another insurer.

In addition to the compulsory deductible that auto insurance holders have to pay, there is also a voluntary deductible option under this plan. By choosing to bear some amount of the claim payable, the policyholder can avail premium discounts.

Age-related discounts are given to customers between 36 years to 60 years.

• Assistance during on-road emergencies.
• Guidance through the process of repairs and replacement.
• Transparent claim process.
• Claim status updates.

SBI General has developed it’s motor assurance product based on a strong understanding of the market and it’s customers. This plan meets the comprehensive needs of all motorists looking to safeguard their financial interests in an economic and flexible manner.