United India Insurance Company Limited is a public sector General Insurance Company of India (Wholly owned by Govt. of India). With the net worth of Rs 5,361 crores as on the financial year 2013-14, The company has more than three decades of experience in Non-life Insurance business headquartered in Chennai.
Key Benefits of United India Car Insurance
Cashless Claim Networks
Direct Cashless Claim settlement in network garages across India
Discount of 5% on the Own Damage premium subject to a maximum of Rs. 200/- for private cars
Accidental Cover /Customer Support
Damage to tyres and tubes unless the vehicle is damaged at the same time in which case the liability of the company shall be limited to 50% of the cost of replacement
Add-on Covers for United India Car Insurance
100 % repayment covered
Third Party Cover
The policy provides Third Party Property Damage of Rs. 7.5lakhs
Personal Accident Cover
Personal accident cover for the owner driver for a specified sum insured
Inclusion & Exclusion in United Inida Car Insurance
Personal accident cover for the owner driver for a specified sum insured
Damage suffered due to driving the vehicle under the influence of intoxicating liquor or drugs
United India Insurance Co. Ltd., formed in 1938 and nationalised in 1972, is one of India’s oldest insurance companies. It has an extensive reach with 1,340 offices servicing clients in urban, semi-urban and rural areas. The company also boasts one of the most diversified product portfolios with solutions that provide coverage for assets ranging from livestock to satellites. The following kinds of insurance are offered to customers: Fire, Health, Motor, Marine, Industrial, Liability, Credit and Micro Insurance.
Who Needs Car Insurance?
It is required by all those who intend to drive in the country. As mandated by law, all vehicles plying on Indian roads have to have third-party insurance. Own-damage policies are optional but by availing a comprehensive policy one can ensure all-round protection. It is also more economical to have an all-in-one package than having separate indemnity contracts.
What is private car insurance?
It is a form of personal insurance, usually included in the product portfolio of general insurance companies that aims to safeguard the financial interests of motorists with insurable interest in automobiles used for private purposes. Subject to provisions, passengers and paid employees are also included in the scope of the contract. Cars, being an expensive asset, can be the subject of situations that give rise to unpredictable financial setbacks.
United India’s Motor Package
The company offers ‘third-party liability only’ covers as well as comprehensive packages. It is always advisable to opt for comprehensive packages since it is impossible to tell what kind of events can lead to losses. The nature of hazards can be varied and financial fallouts can prove to be expensive not to mention the inconvenience that one has to bear in the absence of a necessary vehicle.
What does it cover?
A comprehensive policy that takes care of the financial needs of the proposer as well as third-parties in the event of an accident involving the insured vehicle.
- While many insurers limit the scope of coverage, United India extends it's protection to a wide range of situations that cause impairment to the owner-driver’s life/property. Policyholders are entitled to make claims for losses incurred due to:
- External causes, deliberate or intentional.
- Larceny - this includes loss or damages to accessories.
- Fire, environmental disasters e.g. landslides, floods etc.
- Transit mishaps (whether through road, rail, waterways etc.)
- Terrorism, public disturbances.
- If the accident leaves the car in need of repairs, cover (at marginal, additional costs and within specified limits) extends to:
- Transporting the automobile to the nearest repair centre.
- Repairs required to be done immediately.
As awarded by the court to the third party involved, to compensate for:
- Physical injury/disability.
- Property destruction.
Compensation payable relates to the type of loss:
- 100% in the event of death, loss of two limbs, loss of vision in both eyes, loss of one limb and vision in one eye and Permanent Total Dismemberment (PTL).
- 50% in the event of loss of only one limb or loss of vision in only one eye.
- Available on payment of extra premium.
- The following can be included in the scope of the contract:
- Usage in the following geographic locations (outside the regular boundaries) - Bangladesh, Bhutan, Nepal, Pakistan, Sri Lanka, Maldives @ Rs.500 per car.
- Personal accident covers - for employees and unnamed occupants of the car during the time of the accident.
- Imported or non-factory fitted electrical and electronic accessories - @4% on cost of the equipment.
- Bi-fuel kits - upon declaration; @4% on cost of the CNG-LPG kit.
- Fuel tanks made of fiberglass - @ Rs.50 above own-damage premium.
What is not covered?
The following exclusions are incorporated in the contract:
- Contractual obligations.
- War, nuclear hazards.
- Driving while intoxicated by liquor or drugs.
- Loss due to natural usage, devaluation with age, general depreciation.
- Driving beyond permissible boundaries (geographically).
- Usage beyond permissible limits.
- Driving without a valid license.
What is the sum assured?
The sum assured/insured is referred to as the IDV of the car.
IDV stands for Insured’s Declared Value and is calculated as the producer’s selling price of the automobile (of the same type, make, model, specifications) less the depreciation (applicable as per the below-mentioned table). The IDV, considered to be the market value, reduces with every passing year since the depreciation increases as the motor vehicle ages.
(depreciation indicated against automobile age)
- 5% - up to 6 months
- 15% - between 6 months and 1 year
- 20% - between 1 and 2 years
- 30% - between 2 and 3 years
- 40% - between 3 and 4 years
- 50% - between 4 and 5 years
- As decided by the insurer and insured - Above 5 years (and models no longer manufactured).
The above schedule is used for Total Loss (TL) or Constructive Total Loss (CTL). CTL is considered when total cost of damages is greater than 75% of IDV.
For third-party liability the cover is set as per the Motor Vehicles Act, 1988.
On what basis are premiums calculated?
- For own-damage: Set on the basis of IDV or sum insured.
- For third-party liability: Set as per tariffs under the Motor Vehicles Act,1988.
What are the No-Claim Benefits?
- No-Claim Benefits that the proposer is entitled to upon renewal are as follows:
- 20% - 1 year.
- 25% - 2 years.
- 35% - 3 years.
- 45% - 4 years.
- 50% - 5 years.
- Renewal should be executed within 90 days of policy expiry.
The years mentioned here relate to the consecutive, claim-free years, preceding renewal. The percentage of bonus mentioned relates to Own-damage premium.
What are the other discounts offered?
In addition to no-claim bonuses, the proposer can avail the following discounts for:
- Installation of ARAI-approved anti-theft devices: @ 2.5% or Rs.200, whichever is less.
- Membership with recognised auto associations: @ 5% or Rs.200, whichever is less.
- Special vehicles: @ 50% for use by the differently-abled.
- Classic/Vintage cars: @ 25% for cars produced before 21.12.1940, recognised by the Vintage and Classic Cars Club of India.
- Use within the insured’s premises: @ 33% on tariff rates.
Besides the obvious benefits of this motor package policy , the company also offers a quick and easy way to process claims by undertaking repairs at any of it's numerous associated garages which form a part of it's network for cashless servicing.
This policy has the added advantage of an online purchase and renewal facility thereby saving clients time, money and effort in addition to easy tracking of applications and policy status.
FAQS For United India Car Insurance
- What are the different policies available to customers?
United India provides car insurance package policies and liability only policies.
- Does the United India Car Insurance policy cover damage/loss of accessories by burglary/housebreaking/theft?
Yes. United India Car Insurance policy covers damage/loss of accessories by burglary/housebreaking/theft.
- What are the discounts that can be availed on insurance premium under United India car Insurance?
- 25% discount on vintage cars
- 20% to 50% no claim bonus, depending on claim free years.
- Automobile Association members get a discount of 5% on own damage premium.
- Vehicles with anti-theft devices get a discount of 2.5%
- Vehicles specifically designed for blind/handicapped/mentally challenged people can be insured with a 50% discount on the own damage premium.
- Can I substitute my present vehicle under the existing policy?
In the balance period of a policy, a vehicle can be substituted by another vehicle, subject to adjustment of premium if any, on pro rata basis from the date of substitution.
- Can transfer of ownership be done on an existing policy?
Yes. In case of change of ownership the transfer of Insurance policy has to be done within 14 days from the date of transfer of ownership.
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News About United India Car Insurance
New CMD of United India Insurance talks of company’s IPO plans for FY 17-18
The newly appointed CMD of United India Insurance Company, A V Girijakumar has spoken about the company’s vision for the upcoming financial year. The company is planning for an IPO once GIC and New India Assurance go public. United India intends to turn more viable and become a more economical enterprise with a strong holding of public shareholders. He added that the company mainly plans to reduce underwriting losses incurred from group health business. He also added that the prices in the group health sector will be revised, despite the risk of losing out on business and clients. Mr. Girijakumar also said that the target for the financial year 2016-17 was Rs.14,444 crore, and the company had already crossed the target at Rs.15,000 crore. According to him, the health sector has been a good driver for growth as well as crop insurance, particularly from Pradhan Mantri Fasal Bima Yojana. With regard to Motor Insurance, there have been talks on setting a limit to the insurer’s mandatory third-party liability as it can be very high sometimes. It has also been discussed that unlimited coverage should be provided as an add-on cover that a prudent customer may choose.
3rd April 2017
Claim Insurance for Your Damaged Car Now – United Car Insurance
Was your motor vehicle totally inundated in the Chennai floods? Though it will be least of your worries in the current situation, it would be a prudent step to notify your insurance carrier or the authorized workshop, as any effort to kick-start or rev up your vehicle can end up in you losing your entire claim as per the Comprehensive Automobile Insurance Policy.
Insurance providers like United Car Insurance have been warning people exactly the same. As per the rules, insurance carriers must be alerted about automobiles being water-logged and then they would send an expert to gauge the loss and damage. But trying to start the engine could lead to further problems, which will not be compensated by the insurer and will also impact the depreciation value. To date, United India Insurance has been sent 250 claims under the Comprehensive Insurance Policy for Motor Vehicles. This figure is likely to shoot up even more in the coming weeks.
22nd December 2015
United India Insurance clears crores worth of Car Insurance this week
The past week has been a trying time for all insurance companies. Due to the floods and resultant property damage in Tamil Nadu and Andhra Pradesh, there have been a rush of car insurance claims. The number of claims related to property and automobile insurance has shot up in the wake of heavy downpour in AP and TN. United India Insurance has got over a thousand claims to the tune of INR 300 crore in the previous fortnight alone. While insurance providers have got the required systems in place to hurry up with the claims settlement procedures, they also take this as a chance to make more sales on other products There is also 750 claims worth INR 45 crore for car insurance (damage/ theft) according to the Director and GM of United India Insurance, Ms. A V Girija Kumar.
25th November 2015
‘Holidays Equal Bigger Claims’: United India Car Insurance
While holidays, festivals and long weekends are eagerly looked forward to by common city-dwellers, these stints aren’t very welcome where motor insurance companies are concerned. United India Car Insurance maintains that irresponsible and drunken driving creep up heavily through these ‘relaxed’ times and the inevitable auto crashes and damages do follow. Thus, these durations equate to a steep increment in claims and bigger settlement values. The company also observes that certain geographical locations do also contribute to this trend- the Delhi to Shimla highway, the Mumbai- Pune corridor are prime examples that spawn a good flow of motor insurance claims. The United India Car Insurance is one of the many insurers who hope that the exhibition of such unfriendly statistics will implore drivers to be more responsible, while on the road, through a holiday break.
27th January 2015
GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017