Car Insurance Overview
Car insurance is a type of insurance policy that competently takes care of expenses arises due to accident, theft, natural digester and any third-party liability. Car insurance is the best key to full fill the repairing costs that may arise due to the damages caused by accident or natural disaster. Car insurance policy helps in financial emergencies and legal liability. As per the Motor Vehicles Act, 1988, Motor Car Insurance is mandatory in India. Car insurance policies also cover your financial liabilities arising out of injuries or damages caused by other parties with their vehicle in a road accident. Car Insurance protects yourself from financial losses arising from unexpected risks such as accidents or thefts. It is also known as four wheeler or motor insurance. In four wheeler insurance, you can get the cover for your car and third parties means other party vehicles and their damaged property. You can Buy Car Insurance for both new as well as pre-owned cars. The validity of car insurance policy is one year, two years, three years or more. The car owners have to pay a premium to the Insurance company to buy or renew the car insurance policy. You can claim the policy amount as reimbursement from Insurance Company to cover the cost of damages.
- To financially protect your car from damages at the time of road accident.
- Cover against rider due to accident
- Financial protection arising out of injuries or damages caused to other parties in an accident.
- It saves your car from financial losses arising damages due to natural disasters.
- Car insurance provides financial protection when your car is damaged due to accident or natural digester.
Types of car insurance in India:
Third party insurance and comprehensive insurance
1.Third Party Insurance – It means the type of policy that covers losses of the other person met with an accident with our vehicle. In the third party, policy holder doesn’t get any claim for his own vehicle but the losses of other person vehicles will be reimbursed by the insurance company. At the time of car accident, the policy holder having third party insurance policy has to inform the insurance company about the incident. In the case of car insurance settlement amount will be decided by special courts. The maximum claim amount is Rs.7,00,000. Third party insurance is mandatory in India. Third party car insurance is mandatory in India so it is very cheap so that everyone can afford it. Third party car insurance policy provides coverage to the property damages, injuries, partial disability or permanent disability, death of other parties as well as drivers at the of the accident. Basically, third party car insurance policy means that type of insurance policy that covers the damages or injuries of other parties only, not yours.
2.Comprehensive Insurance– It means that type of policy offers complete protection against the damages due to an accident. Comprehensive policy provides coverage for the damages, third-party legal liability, theft, along with the personal accident coverage. In a comprehensive car insurance policy, you can get additional benefits by choosing the add-ons like accessories cover, engine protector, zero depreciation cover, medical expenses, etc. The comprehensive insurance policy has some capping i.e. 30 % in rubber, 50% in plastic, 20% fibre and so on, avoid such capping’s, there is zero depreciation insurance. This insurance policy offers 100% coverage for all fiber, rubber, plastic and metal parts without any capping. It means, if your car gets damaged due to the accident, you will receive the entire cost from the insurance company. zero depreciation will add a nominal amount in your premium. Comprehensive car insurance is all-around coverage that comprehensive covers offers 100% coverage with capping on some parts and additional benefits, this type of four wheeler Insurance policy is ideally suggested for all cars. Basically, Comprehensive car insurance policy provides protection to you, your car and other parts against all possible risks like a road accident, natural digester or theft cover.
1. Claim Settlement Ratio
Customer service is an important factor to consider before buying car insurance. Choose that insurance company that has a higher claim settlement ratio because that insurance company will settle your claims at a high priority.
Choose the accurate insurance policy that suits your requirements and wants. How much coverage and additional benefits they are giving.
Pick the right insurance policy cording to your budget because the primary plan of all companies is similar.
4. Network of Garages
Under the network garage, you will get cashless services for your damaged car means you don’t have to spend any amount on your repairs.
5. No Claim Bonus
It is a bonus given under comprehensive policy on OD (on damage) premium. NCB is given if your previous policy is not expired and you have not taken any claim under the previous policy. Range of no claim bonus can go up to 60%. No claim bonus is your reward for renewing the policy on time.
IDV is insured declared value. Is the value declared by the policy holder while buying or renewing the policy. It is the amount which is used for settlement at the time of theft. You can get the claim on accidental repairs up to IDV.
10 benefits of Car Insurance Policy
1. Cashless Garage Network
In cashless garage network, the policyholder gets the benefits of cashless settlements for his damaged vehicle. The policyholder has no liability to pay the amount to the garage for repair of his vehicle. The garage will settle the cost incurred directly from the insurance company. This is a very important point while choosing the best company for your motor insurance.
2. Damages Cover
All fire damages are covered by the insurance company. It is a very serious situation and a lot of damages will be there if but you have a policy, all the damages cost is covered by the insurance company.
3. No Penalties or Challan
Traffic police impose fines and punishments if you don’t have insurance that’s way Car Insurance is mandatory for avoiding fines or challan.
4. Man-Made Disaster
If your car has been stolen by a thief you have to inform the insurance company to get the claim of your vehicle, this condition is only valid in the comprehensive insurance policy.
5. Personal Accident Coverage
Personal Accident Insurance covers death or disability caused due to an accident. The car insurance policy basically has a Personal Accident cover for the owner-driver. Insurance offers you protection against the risk that can be caused by road accidents. Currently personal accident cover is of 15 lakhs.
6. Peace of Mind
The best solution to full fill the repairing costs that may arise due to the damages caused by an accident or natural disaster. You are free from the sudden financial crunch.
7. Damages Cover Caused by a Natural Disaster
Natural disasters like flood, fire, earthquakes, storms, hurricanes, and lightning can damage your vehicle. It can be a serious financial loss if it gets damaged in natural disasters. All the damages cost is covered by the insurance company.
8. Online Renewal
Online renewal of your Two-Wheeler is very simple and hassle-free.
9. No Claim Bonus
No Claim Bonus, i.e. ‘NCB’ is a discount that is given by the insurance company to the policy holder. It is also a good way to increasingly reduce your insurance premium. NCB is available for those people who have not claimed insurance during the policy period of one year.
10. Damages Cover Caused by a Car Accident
A car accident is a shocking period; mentally, physically, and financially. Thus, if your car is damaged due to a road accident, the insurance company will take care of the expenses incurred for repairing the insured vehicle.
How do I renew my car insurance online?
Now online policy renewal becomes so easy. You just have to open the company’s website and select “Renew your policy online”. Enter the details of your vehicle as mentioned on your RC. Check the IDV and other Add-on covers. Cross check all the details such as Make and Model, RC holder details, nominee details, Engine number and more. After confirming complete the payment process and get the policy on your mail in 5 minutes.
Renew Car Insurance Online
10 best car insurance companies in India.
- ICICI Lombard General Insurance Company Limited
- Bajaj Allianz General Insurance Company Limited
- Tata AIG General Insurance Company Limited
- HDFC ERGO General Insurance Company Limited
- The New India Assurance Co. Ltd.
- The Oriental Insurance Co. Ltd.
- Bharti AXA General Insurance Company Ltd.
- United India Insurance Co. Ltd.
- Reliance General Insurance Company
- Universal Sompo General Insurance Company Limited
How can I get a claim in car insurance?
Getting a claim in car insurance is fast and hassle-free. Four-wheeler insurance claims
process simple and efficient. All settlement is cashless or reimburses in car insurance.
These are some simple process for claim process:
- Register Your Claim
- Call at an insurance company at your location
- Send your car for repairs
- Submit your policy related documents
- Get your claim settled for your car
Claim Settlement Ratio of Car Insurance Companies 2018
|Insurance Company||Incurred Claim Ratio||Grievances Settled|
|Bharti AXA General Insurance||81.74%||99.81|
|Future Generali India Insurance||76.50%||99.86|
|Liberty General Insurance||69.62%||99.06|
|Bajaj Allianz General Insurance||62.20%||99.28|
|Cholamandalam MS General||79.65%||99.82|
|HDFC ERGO General Insurance||84.37%||100|
|IFFCO Tokio General Insurance||79.19%||99.94|
|Magma HDI General Insurance||81.71%||84.96|
Add on the cover in car insurance
1. No Claim Bonus Protection Cover
At every claim free year, it is a type of reward with a discount on the renewal premium.
This discount is known as – No Claim Bonus (NCB).
2. Engine Protection Cover
The engine is the most important part of a car. It covers the Gear Box Parts, Engine Parts, and
3. Zero Depreciation Cover
It is an add on cover under comprehensive insurance policy. Zero depreciation covers 100% cost of
4. Consumables Cover
In Consumables Cover occasionally, a bunch of unexpected expenses can drain all your
Investments or savings. Consumable items include screws, nuts and bolts, washers, AC gas,
grease, lubricants, bearings, clips, engine oil, distilled water, oil filter, brake oil, and fuel filter
are mostly covered.
5. Key Protection Cover
Key Protection Cover means that once in a lifetime everybody would have lost or misplaced
their car keys. In those cases, the insurance company can offer you the financial help by cover the replacement and repair of the cost of your car keys.
6. Personal Accident Cover
Personal accident cover means that reimbursement for accidental death and injuries that may occur at the time of the accident of policy holder or rider.
What is not covered in a car insurance
These items are not covered in car insurance-
- Loss or damage are not covered due to the negligence of policy holder or rider.
- Gradual damages of car and its parts are not cover.
- Loss or damage are not cover when a person is driving a car without having a valid driving license.
- Damage of your car as a result of intoxication due to drugs, alcohol etc.
- Loss or damage to the engine at the time of oil leakage.
How can I buy the correct car insurance policy?
IRDAI – Approved Insurers:
IRDAI – Approved insurer and check the insurer’s claim settlement ratio of the company.
Compare all the company before buying car insurance. Check all the plans of the insurance company they offer and choose the best and suitable plan for your car and your budget.
Which type of insurance you select for your car there are two types of insurance comprehensive insurance policy and third-party insurance policy.
You must know about each add on covers they are offering and their benefits. Each add on cover haves their additional premium.
Sum insured (IDV):
Sum insured means the value of the vehicle declared by the policy holder. It will be a settlement amount in case of accidental damage or theft.
Inclusions and Exclusions in Car Insurance
Inclusions in car insurance
- Car insurance policy covers all damages that may occur to your car due to accidents.
- Personal Accident Cover, in case of death or permanent or partial disability that may occur due to an accident.
- Financial protection and damage protection from natural disasters such as floods, earthquakes, etc.
- In case your car is stolen by a thief, your insurance company will pay an amount equal to your IDV.
- Man-made disasters such as riots, strikes, fire, and terrorism are covered under your policy.
Exclusions in Car Insurance
- Damages not covered if policyholder or driver is driving under the influence of alcohol or drugs.
- Loss that is caused due to war and nuclear danger.
- Accidental Damages are not covered if your car is involved in any illegal activity.
- Losses suffered while driving without having a valid license
- Mechanical expenses due to consistent wear and tear.