Car insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. In India, having third party liability cover on your car Insurance is a must as per law.
What is covered in car insurance?
What are the different types of car insurance policies?
It covers not only the costs incurred on damages to a third party but also the damages to your car. This policy type
If you have an active third party insurance policy of the vehicle, you choose to buy only stand-alone
This policy will cover you against legal liabilities arising out of an accident. If your car causes injuries to a
Add-on benefits
You can choose from wide range of add-ons, for an additional premium. These add-ons give you amazing benefits at the time of any claim
As the car turns older,
the value of its parts decreases
This cover provides you
repair/replacement cost
This over helps you during
breakdown/accident of you vehicle
Tyre damage isn't covered in
standard insurance unless
This cover pays for repair
or replacement of nut and bolt
In case of theft or damages
beyond repair, this cover gives
What is not covered in your car insurance
The sum insured value of the car or Insured Declared Value (IDV) of the car
No Claim Bonus (NCB) is discount on the Own Damage premium of Car Insurance Policies
FAQs
The amount of the premium you pay is determined by the zone you live in. The Indian Motor Tariff Act has specific zones that have a different rating and this affects the amount of premium. The city of registration of the vehicle is what determines the premium in these zones, eventhough the place of use and insurance renewal may be different. For quick reference, here is a general categorization:
Zone A: Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, and Pune. Zone B: Rest of India
Although not directly, factors that determine insurance rates, the age, make, and model of a vehicle can predict how likely it is that the insurer will have to pay for an insurance claim thereby affecting the premium. Some aspects that are considered are how likely each type of vehicle is to be in an accident, how likely a certain type of car is to be stolen, what the average repairs cost for common types of damage, and how likely the vehicle you drive will result in a costly insurance claim.
Compulsory excess is the amount that you will have to pay out when you make a claim. If the claim made by you was due to someone else's fault, your insurer may pay out your claim in full and waive your excess. However, you will have to check the terms and conditions of your policy to determine if such a point has been mentioned by the insurer.
While there is a possibility of paying your auto insurance in monthly installments, it is likely that you may end up paying more as insurer may add an extra fee for monthly payments as well as interest charge. Further, you are likely to miss out on some good deals on the car insurance if you choose to go the monthly route. It is advisable to check with your concerned insurer and know the possibility of interest rates and other benefits before taking a final call.
Generally, Car insurance is renewed year on year. You are likely to get a call from the insurer weeks before your insurance policy is about to lapse. You can either pay the renewal payment in cheque drawn in favor of the insurer. You can ask your insurer to send a cheque collecting agent, who would collect the cheque and hand you over a receipt detailing your insurance renewal details. Your renewed insurance paper reaches you within the next 10 working days after the payment is made.
Yes, you can! If there are any changes in the policy like change of address or modifications to the vehicle or its use, it will be done by an Endorsement by your insurance company. Submit a letter to your insurer with proof for the changes and obtain an endorsement. Some endorsements may require you to pay additional premium. Check the correctness of the endorsement.
When you transfer the insurance on your old car to the buyer, ensure you get a no claims certificate from the insurer. This certificate can be used at a later date, when purchasing insurance on a new car. While people prefer to use the certificate to receive a discount on the new car insurance premium, others ask for a refund of the same amount.
Some of the documents that are generally required while claiming insurance are a copy of the Registration Certificate (RC), Proof of loss, medical and car repair bills and a police report. A statement of claim and a record of expenses incurred are also other supporting documents that are deemed necessary.
When an you transfer the ownership of your vehicle to another person, then as per Sec 157 of Motor Vehicles Act 1988, the certificate of insurance and the policy that you have purchased will also be automatically transferred in favour of the new owner with effect from the date of its transfer.When selling your car, all you have to do is ensure that the following documents are in place:
Original Registration Certificate (RC)
Application Form 29, 30 (with your and purchaser signature)
Affidavit from you and the purchaser regarding transfer of ownership
Address Proof of purchaser
No Objection Certificate from the concerned RTO/ AETC in case of Transport Vehicles
Valid Insurance Certificate
Appropriate fee
Your NCB on the existing policy is terminated if the policy is not renewed within 90 days from date of expiry.
If your insured vehicle meets with an accident outside the city, area of state from where the policy has been issued, you can do the following: Call the toll free number of the Insurance Company and intimate about the accident. Do as per what is advised by the insurance company
In case you aren't aware of the contact no. of insurer, confirm if it has an office at the place where accident took place. Intimate the claim to the local office
In case of no contact with the insurer or if the accident happened in odd hours /holiday, keep the photographs of vehicle on the spot of accident
Check for the Road Side Assistance support contact details and call the call centre number for immediate help If the loss is major and there is a third party damage / loss / Injury / death etc., file an FIR / Police report immediately
When your policy completes a year, you need to make sure that it is renewed before the expiration date. At the time of buying car insurance or renewing your policy, you would notice that the policy clearly states the time and date from which the cover is effective and the date and time on which the cover terminates. If you miss the deadline even by a day, your policy will have a break. Considering your car insurance policy is an annual contract that needs to get renewed every year, a break in the tenure will mean that instead of renewing your policy, you will need to buy a policy afresh. This could mean a higher premium subsequently or rejection to offer insurance.
If your insured vehicle meets with an accident outside the city, area of state from where the policy has been issued, you can do the following: Call the toll free number of the Insurance Company and intimate about the accident. Do as per what is advised by the insurance company
In case you aren't aware of the contact no. of insurer, confirm if it has an office at the place where accident took place. Intimate the claim to the local office
In case of no contact with the insurer or if the accident happened in odd hours /holiday, keep the photographs of vehicle on the spot of accident
Check for the Road Side Assistance support contact details and call the call centre number for immediate help If the loss is major and there is a third party damage / loss / Injury / death etc., file an FIR / Police report immediately
When your car is insured, depending on the details of the accident involved, the insurance company typically, takes over the compensation liability irrespective of the person behind the wheel.
What you need to keep in mind is however,
That your vehicle is in roadworthy condition
You have proper documents of your insurance cover
The driver employed is experienced enough to handle the model or type of your car besides
having a valid driving license
For handicapped persons, a discount of 50 per cent is available on the Own Damage premium - provided that the vehicle has been modified for use.
When your policy completes a year, you need to make sure that it is renewed before the expiration date. At the time of buying car insurance or renewing your policy, you would notice that the policy clearly states the time and date from which the cover is effective and the date and time on which the cover terminates. If you miss the deadline even by a day, your policy will have a break. Considering your car insurance policy is an annual contract that needs to get renewed every year, a break in the tenure will mean that instead of renewing your policy, you will need to buy a policy afresh. This could mean a higher premium subsequently or rejection to offer insurance.
A comprehensive coverage for your car provides protection against any kind of damage arising out of theft, war, natural calamities, strikes, third party damage etc. You can further add on to it coverage for each and every accessory of your car such as engines, accessories, seats etc, and zero-depreciation covers as well. This is the most preferred coverage plan as it takes care of your entire car's insurance without any hindrance.
When your car is insured, depending on the details of the accident involved, the insurance company typically, takes over the compensation liability irrespective of the person behind the wheel.
What you need to keep in mind is however, That your vehicle is in roadworthy condition
You have proper documents of your insurance cover
The driver employed is experienced enough to handle the model or type of your car besides
having a valid driving license
An endorsement is a written form attached to any insurance policy that bestows the right to alter the policy's coverage, terms, or conditions. This is sometimes called a rider. It is like an addendum to your existing policy which records the stated change/s and the policy detail is changed according to the relevant endorsement.
You can affect changes in your car insurance plan due to several scenarios which including corrections in engine number, chassis number or registration number OR change in name, address, contact details, car information etc. It is also used for specific alterations that may be required like inclusion or increase in voluntary deductible. All these scenarios may call for a change in your original policy which will require an Endorsement.
All you need to do to get an endorsement is submit a letter requesting for the changes or corrections in your policy supported with specific proof documents for each. Based on the validity of the changes requested, the Insurance company will then initiate the process.
Fill up the proposal form yourself, answering all the questions correctly and sign it. This plays a vital role in deciding the premium and the admissibility of claim. Incomplete or incorrect information may result in denying the claim to you.
Therefore, never leave it to any other person to fill it Ensure that your and vehicle details are correctly recorded in the policy schedule. Make sure that every digit of vehicle registration number, engine and chassis numbers etc. are fully and correctly entered.
Any error should be immediately got corrected as otherwise it would create trouble at the time of claim If there are any changes in the policy, it will be done by an Endorsement by the office. Please check the correctness of the endorsement Read policy terms, conditions, particularly the exclusions etc. very carefully. They are important from claim point of view Remember, registration and insurance of the vehicle should always be in the same name with same address. Otherwise the claim is not payable
*Savings are based on the comparison between the highest and the lowest premium for own damage cover
(excluding add-on covers) provided by different insurance companies for the same vehicle with the
same IDV and same NCB.
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