Car insurance is a type of motor insurance policy that protects a car from any unavoidable dangers that may lead to monetary losses. It is a risk-sharing contract between the motor insurance company and the car owner where the former promises to pay for the repairs/ replacement of the car in exchange for a premium. A car insurance policy provides coverage against any risks or dangers arising out of accidents, third party liabilities, theft, manmade calamities, fire, natural hazards, etc. resulting in damages or loss of the car.
Why Should You Buy Car Insurance Policy?
Buying a four wheeler insurance policy is mandatory in India for all cars as per the Motor Vehicle Act 1988. Vehicle insurance companies compensate for the loss or damage caused to the insured vehicle and a third-party from the insured four-wheeler. Here are some of the reasons to buy a new car insurance policy in India:
It pays for the car damages as a result of a collision, accident, death or natural calamities, which otherwise would need to be paid by the insured
It pays for hospitalization expenses in case of an accident
It reduces the financial and legal damages that can arise from a third-party liability or damage
With rider benefits like roadside assistance, zero depreciation the expenses are further reduced
Moreover, the premium amount of your car policy is decided based on the Insured Declared Value or IDV of the vehicle. If you increase the IDV, the premium rises and if you lower it, the premium reduces.
It is important for any policyholder to compare car insurance plans before going for 4-wheeler insurance renewal or buying a new policy. Car insurance comparison can be made online on Policybazaar and you can buy the plan that fulfils your expectations hassle-free. It can help to:
Get the best car insurance policy from top motor insurers
Instant and easy online car insurance renewal process
Comprehensive coverage for four-wheeler vehicle
A wide range of add-on covers for improved protection
Moreover, the premium amount of your car insurance is decided based on the Insured Declared Value or IDV of the vehicle. If you increase the IDV, the premium rises and if you lower it, the premium reduces.
It is important for any policyholder to compare car insurance plans before going for 4-wheeler insurance renewal or buying a new policy. Compare various car insurance plans online on Policybazaar and buy the one that fulfils your expectations hassle-free:
Get the best car insurance policy from top Car insurers
Instant and easy online car insurance renewal process
Comprehensive coverage for four-wheeler vehicle
A wide range of Add-on covers for improved protection
Types of Car Insurance Policy in India
There are three types of car insurance policies that are available in India –
A comprehensive insurance policy provides coverage for third party liability as well as damages caused to your own car. In comparison with third party liability insurance, a comprehensive four wheeler insurance policy offers extensive coverage, more benefits and covers the damages caused to the insured car in case of an accident, collision, theft, etc.
A comprehensive policy can be further extended by opting for add-ons like accessories cover, engine protector, zero depreciation cover, medical expenses, etc. This type of coverage is the most popular as it offers end-to-end coverage and thus less stress for the policyholder.
Third party insurance safeguards you from any legal liability due to your own car’s involvement in an accident. Your insurance provider will compensate you for death, disability, injury, or property damage to any third-party. Therefore, you are protected from the financial liability towards the third-party.
Third-party liability car insurance prices are a mandate in India under the Motor Vehicles Act, 1988.
Engine Capacity
Third-party Liability Car Insurance Price Effective June 16, 2019 (Rs.)
Also known as usage-based motor insurance, this insurance policy allows the insured to pay the insurance premiums as per the kilometres driven. This newly introduced product likely to be helpful for those with multiple cars not all of which are used so frequently. As per the IRDA guidelines under the Sandbox project, a few insurers such as Bharti AXA, Bajaj Allianz have started offering Pay As You Drive insurance policy. The policy offers comprehensive coverage for own damage and third-party liability on a pilot basis for a term of one year. The policy seeker will have to declare the distance he/she expects to travel during a policy year and based on that premiums for Pay As You Drive policy will be decided. However, the insurers have come up with 3 slabs for distance covered -Rs 2,500 km, 5,000 km and 7,500 km.
Best Car Insurance Policy in India 2020
The following table shows the complete list of the best car insurance policy in India with their personal accident cover and the number of network garages offered by the car insurers:
Disclaimer : *Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Benefits of Car Insurance Policy
It is not only because of the law but for the benefit of your vehicle, it is good to get it insured. Whether you purchase a new car or old second-hand vehicle, its insurance is needed always. A third-party insurance policy provides protection against liabilities (legal and financial) towards a third-party.
However, you can buy a comprehensive cover as well that not only provides third-party coverage but protects your vehicle against damage or loss. Here are a few benefits of having a four wheeler insurance policy:
Personal Accident Cover: A comprehensive car policy not only provides third-party cover but as well as offers cover against personal accident. In personal accident cover, you get a pre-defined amount against death because of the accident and permanent total disability. In addition to this, one can purchase this cover for co-passengers as well even on an unnamed basis, which will be maximum as per the seating capacity of the vehicle. However, the amount of coverage is pre-determined even in this case.
Loss or Damage of the Insured Vehicle: A comprehensive car policy provides coverage against damage or loss to your car. Reasons for damage like fire, accident, or self-ignition are covered in this plan. In addition to this, if the car faces losses because of theft, burglary, terrorism, riots, then also an insurance policy covers it. Moreover, it also covers loss or damage occurred due to transit via train, air, road, inland waterways, or lift.
Vast Network of Garages: Most of the motor insurance providers have a wide range of network garages that are spread across the country. This feature ensures that you can get the service of your car anywhere in India.
No Claim Bonus: One of the best benefits of having a car insurance policy is its No Claim Bonus (NCB) feature. You are eligible to avail of this offer for each claim-free year. The NCB is available as a discount on the next premium and this makes 4 wheeler insurance policy comparatively more affordable.
Liabilities of Third-Party: If your car meets with an accident and causes loss or damage to the property of a third-party, then do not worry as it is covered under four wheeler insurance policy. Moreover, if you come across any legal liabilities because of an accident by your car like death or injury to any person or property, then do not worry, your car policy provides you coverage for the same.
How to Choose the Best Car Insurance Policy?
Finding the best car insurance policy can be a great deal, as this is a yearly investment that you make to cover the risks while driving on the road. The market is bursting with numerous four wheeler insurance plans providing value-oriented services to its customers. And it can get quite confusing to find the best 4 wheeler insurance policy online?
This checklist of the best car insurance companies in India will help you compare different quotes from various insurance companies online and select the best deal for yourself. You can check out this list of the best four wheeler insurance plans for 2020, by analyzing their features including the incurred claim ratio, network garages, and the coverage benefits.
Points to Consider While Selecting Car Insurance Policy
What is covered - Checkout the inclusions and exclusions of both third party insurance and comprehensive vehicle insurance policy. Only buy third party insurance if you can bear your own damage expenses.
Compare Car Insurance Online - Compare car insurance online and select the one that meets most of your financial expectations. You can easily get multiple four wheeler insurance quotes online from the best car insurance companies in India.
Incurred Claim Ratio - Higher ICR, indicate satisfied customers and more the chances of your claim being settled.
Add-on Covers - It is always recommended to buy a comprehensive car policy with additional benefits like roadside assistance, zero depreciation, flat tyre assistance, etc.
What’s Covered in Car Insurance Policy?
The four wheeler insurance policy covers the following:
Loss or damage to the insured vehicle.
Loss or damage to your vehicle caused by accident, theft, fire, explosion, self-ignition, lightning, riots, strikes or act of terrorism, natural calamities.
Financial liability caused by the injury/death of a third party or damage to the property.
Personal accidental insurance cover.
Add-On Covers in Car Insurance Policy
Add-on covers are the additional covers or protection that you include in your 4 wheeler insurance plan to keep your car safe from any damages or total loss. The add-on covers need to be purchased on payment of an extra premium amount. Following are some of the add-on covers - No Claim Bonus Protection cover, Zero Depreciation cover, Engine Protection cover, Key protection cover, etc.
No Claim Bonus Protection Cover
For every claim-free year, the insured is rewarded with a discount on the renewal premium. This discount is called - No Claim Bonus (NCB). It is cumulative and increases every year. It usually ranges from 10% to 50% and can save a substantial amount of money on the premium payable for your auto insurance.
Let's take an example if a policyholder doesn't make a claim during the tenure of his auto insurance policy, he becomes eligible for No Claim Bonus, on the basis of which, a certain rebate is offered on the payable premium. With No-claim-bonus protection cover you can retain your NCB even after registering a claim during the policy term. The terms and conditions vary from one insurer to another.
Engine Protection Cover
An engine is one of the most important parts of a car. And engine protection cover compensates the cost of fixing the indirect damages that are caused to the engine due to lubricating oil leakage and water ingression. It covers the Gear Box Parts, Engine Parts, and DifferentialParts.
Zero Depreciation Cover
This additional feature offers compensation even for the depreciating value of your car. With this feature, you will not have to pay for the depreciation value of your vehicle’s parts. It is mostly valid on private cars and is subjected to a specific number of claims during the policy period. Compulsory and voluntary deductibles (as per the case) will be applicable despite zero depreciation cover. You can check with the insurance company for any terms and conditions before making the purchase.
Consumables Cover
Sometimes, a bunch of unforeseen expenses can drain all your savings. Consumables Cover. Includes all the expenses incurred on consumable items for any perils that are covered under the policy. 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.
There are certain terms and conditions that are applicable to this add-on cover that varies from one insurance provider to another. It is mostly valid on private cars and is subjected to a particular number of claims during the policy period. You can check with the insurance company before making the purchase.
Key Protection Cover
Once in a lifetime everyone would have lost or misplaced their car keys. In such cases, the insurer can offer you the financial help by covering the costs incurred on replacement and repair of your car keys. Here’s was Key Protect Coverwill offers.
You will be permitted for a fixed number of claims during your policy period
Any case related to theft or burglary should be supported by a Police FIR
The replaced keys will be of the same type as the ones that were lost or stolen
Any broken or damaged keys will be replaced by the insurer
In case of misplacement or theft of car keys, the insurer will replace the entire set of keys including h lockset, after submission of all the other keys to the insurer
Daily Allowance Benefit
In case of accidental damage, you might have to leave your car in the workshop and travel on your own. This add-on cover comes to your rescue when your vehicle is parked in the garage after an accident for repair. If you have this add-on cover the insurer will provide you daily travel allowance if the vehicle requires has to be in the garage for more than 3 days (varies from insurer to another).
Personal Accident Rider Benefit
Personal Accident Rider is an optional add-on benefit that can be added to the comprehensive auto insurance by paying an extra premium. This rider provides the policyholder with the coverage of medical expenses due to damage, personal injury or disability caused due to an accident.
Cover for Car Accessories
By simply opting for separate add-on policy, you can avail the coverage for your car accessories, which a normal 4 wheeler insurance policy may not cover. Such additions may increase the premium, but it is always beneficial and cost-effective rather fitting a new car accessory.
Save Through Paying High Deductibles
Deductibles are a certain percentage of the claim amount that the insured has to pay from this own pockets. A policyholder can save by paying higher deductibles. At the time of filing a claim, if you choose to pay higher deductibles against your claim, your auto insurance provider manages to give you some discount on premium later on.
What’s Not Covered in Car Insurance Policy?
Following features are usually not covered in a 4 wheeler insurance policy:
Loss or damage if a policy is not in force.
Gradual wear and tear of car and its parts.
Loss or damage to the vehicle when driven by a person without a valid driving license.
Loss or damage to the vehicle as a result of intoxication due to drugs, alcohol etc.
Loss or damage to the engine as a result of oil leakage.
Loss or damage to the vehicle as a result of abuse of car manufacturer's guidelines.
How to Calculate Car Insurance Price?
Car insurance price is decided based on several factors. It is also easy to find out the four wheeler insurance premium using an online car insurance calculator. However, the insurance provider takes into consideration the following parameters before fixing the car insurance price:
Thus, the formula to calculate OD premium amount is:
Own Damage premium calculation formula:
Insured Declared Value X [Car Premium as per the insurer)] + [ Optional Benefits] – [NCB/Discount etc.]
How to Renew Car Insurance Online?
It's mandatory to renew your car insurance to avail of the policy benefits without a break. Therefore, you should ensure your car policy before it gets expired. Follow the steps given below for online car policy renewal:
Go to the renewal section.
Enter the details required on the page, such as your policy number, mobile number, date of birth, etc. and submit them
Choose the 4 wheeler insurance plan that you want to purchase
Select the riders or add-on covers that you want to buy or drop (if any)
The premium amount that you need to pay will be shown on the page
Pay the insurance premium online with the help of a credit card, debit card or through net banking
Once the payment is complete, your four wheeler insurance policy will be renewed
You will receive the policy document for your renewed 4 wheeler insurance on your registered email id. You can also download a copy of the policy document and get a printout anytime you want.
Benefits of Renewing Car Insurance Policy Online
A new car insurance policy has a validity period and after its expiry, you need to renew it for keeping your car insured. You can renew your car policy either offline or online. Even though many of us still follow the traditional method of offline renewal of the policy, but opting for online car policy renewal is better. Here are a few benefits of renewing your car policy online:
Easy and Quick Process: For renewing your online car policy, all you have to have is good internet. With the help of a good internet connection, you can renew your 4 wheeler insurance plan at the convenience of your home anytime. In this way, online renewal is easy and fast as you do not have to go to a branch of the insurance provider or call an agent for renewal. Moreover, the online car policy renewal process is paperless or requires very minimal paper-work.
Simple Customization of Policy: You can easily customize your car policy while renewing it online. You can enhance the coverage of your policy by adding add-ons to it. However, before topping your policy with an add-on, you must keep in mind that the premium majorly depends on the cover type that you are taking.
Secured Renewal / Purchase Process: Car insurance renewal online is an easy process because of the availability of all the required information over the web. This transparency enables you to make an informed decision. In addition to this, payment through secured gateways of payments ensures that your personal and critical information is not leaked anywhere. Therefore, it safeguards you from exposing to any fraudulent risks.
Simple Insurance Provider Switching Process: In addition to all the above benefits, you can very easily switch your insurance provider while renewing your policy online. Since information regarding all the insurance providers is available online, thus it is very easy to make car insurance comparison online and select the best-suited plan in terms of premium and features.
Easy No Claim Bonus Transfer Process: You should always transfer your NCB or No Claim Bonus at the time of policy renewal. While for the online renewal process, it is really easy and quick in comparison to offline renewal.
A Transparent Method: Since in the online renewal process everything is in front of your eyes. This means nothing is hidden or no agent or someone is hiding any information from you. Whether it is a comparison of policies or switching of plans or payment processing everything is selected by you and happens in front of you. So, we can easily say that this method of policy renewal is completely transparent.
Benefits of Buying Online Car Insurance Policy
Buying an online car insurance policy is a common practice today. With the buying of 4 wheeler insurance policy online, you can insure your car against any damage due to an accident, theft, fire etc within 2 minutes. If you are wondering why most people prefer to purchase four wheeler insurance online, check out its benefits below:
No More Agents
Offline purchase of insurance policies involve agents who try to sell their own product rather than suggesting you a better policy from another insurance provider. Purchase of new car insurance policy online will eliminate such agents and you can buy the best policy after comparing various plans offered by different insurance companies.
Zero Paperwork
Another benefit of buying four wheeler insurance policy online is zero paperwork. Contrary to the offline mode which requires you to fill multiple forms, the online mode allows you to fill up all the forms online. You can also upload the required documents online making the application process digital and free of any paperwork.
Convenient & Saves Time
As compared to the offline modes, buying 4 wheeler insurance online is very convenient. You don’t have to visit a branch of the insurance company or take out time to meet the agent. You can get your car insured from the comforts of your home, hence, saving a lot of time and efforts.
Payment Reminders
Missing policy payments or renewals can cost you a great deal. Not only will you lose out on the renewal discounts but also have a break in policy. But if you purchase your car policy online, you will receive timely reminders ahead of your due date ensuring that you do not miss out on the payments.
Cashless Facility
Buying 4 wheeler insurance online offers cashless facility and involves zero cash transaction. You can make payment of your insurance premium online through online modes such as debit card, credit card and internet banking.
Easy Comparison
With the online purchase of four wheeler insurance, you can easily compare the plans offered by different companies. Online aggregators allow you to compare the coverage and the premium quotes provided in different plans before selecting an ideal insurance policy for your car.
More Cost-Effective
Buying an insurance policy online is more economical as you save a lot of in-between costs. Your premium reduces due to elimination of agents, zero paperwork and you get discounts that further reduce the amount of premium you pay.
Easy Endorsements
Endorsement refers to any changes in the information provided in the policy document. in case of online endorsements, you just have to give a self-declaration as opposed to the filling up the endorsement form manually and submitting all the documents.
Soft Copy of the Document
Another benefit of applying for car insurance online is that you have a soft copy of your policy document in your email. This makes it easy for you to access it from any place without the need to carry a hard copy with you.
Third-Party Car Insurance Cover vs Comprehensive Car Insurance Cover
The main difference between third-party insurance and comprehensive four wheeler insurance is the cover they offer. On one hand where third-party insurance covers your car against any loss or damages to third-party. On the other hand, comprehensive car policy provides coverage for own vehicle damage as well. Let us compare these two types of motor vehicle insurance policies:
Parameter
Third-Party Car Insurance
Comprehensive Car Insurance
Coverage
This insurance plan covers damages and losses caused to third-party person, place, or property by the insured vehicle.
This insurance plan offers damages or losses incurred to the insured vehicle along with the third-party cover.
Is the coverage sufficient?
No, because the insured vehicle is still exposed to risks.
Yes, being comprehensive you can even add add-ons to make it more elaborative.
Is the facility of add-on provided?
Here the only add-on that is provided is – a personal accident.
You can include many add-ons in your comprehensive car policy like roadside assistance, zero depreciation, cover for accessories, etc.
Which is affordable?
Third-party insurance is the affordable one because of its limited coverage. The price of third-party vehicle insurance policy is finalized by IRDAI, which is based on the cubic capacity of the vehicle.
The price of comprehensive vehicle insurance is comparatively higher because of its vast coverage. The price of this policy is finalized by the insurance provider itself because of the inclusions and terms and conditions of the plan.
Therefore, comprehensive vehicle insurance is better than a third-party insurance cover because of the vast coverage provided by it. Moreover, you can customize your coverage by adding add-ons in your plan while a third-party 4 wheeler insurance plan leaves you exposed to risks like damaging your vehicle.
Let us elaborate these two to understand the difference more clearly:
Third-Party Car Insurance
Third-party insurance is a four-wheeler insurance policy that provides financial protection to the insured car’s owner against any loss or damage to some third-party, which can be another person or another person’s property. According to the Motor Vehicle Act, 1988, it is mandatory to have at least a third-party vehicle insurance policy. So, this policy provides:
Legal Liabilities
Third-party Liabilities
Compensation for death of another person from the insured four-wheeler.
Comprehensive Car Insurance
A comprehensive insurance policy provides a vast coverage that includes both – liabilities of third-party and own damage. Purchasing a comprehensive plan is not mandatory as per the law, but because of its vast coverage, many car owners prefer this insurance policy. The inclusions of this policy are:
Provides coverage against own damage.
Has a vast range of coverage.
The provision of add-ons improves insurance coverage as well.
Methods of Purchasing Comprehensive and Third-Party Car Insurance:
It is not at all difficult to get a four wheeler insurance policy. You can purchase it by any of the below-mentioned three methods:
Online: For purchasing a comprehensive or third-party insurance policy, all you have to do is to go to the website of your selected motor insurance provider. With minimal to no paperwork, you can buy affordable car insurance online.
Visiting the Nearest Branch of the Insurance Provider: Once you select the insurance provider, you can visit its nearest branch and get your car insured.
With the Help of an Insurance Agent: Last way is through an insurance agent. An insurance agent is the affiliate of the insurance provider. An agent provides the application form with other details.
How to File a Car Insurance Claim?
All the car owners, at some point in time, need to file an insurance claim for a certain loss or damage. To avoid any confusion while filing a 4 wheeler insurance claim, here are a few points that you need to consider:
Make sure that you have the following information ready with you at the time of claim intimation
Time & date of the accident
Name of the driver and contact details along with driving license details
Four Wheeler Insurance Policy number
Estimated loss
A brief description of the incident
Survey location to support the investigation process
Insured contact details
Claim intimation should be provided at the customer help desk. They will take you through the claim process
Once you have informed, the insurer's customer support team will provide you with the claim reference number
Upon claim registration, a surveyor will be assigned for your case
You will receive the confirmation notification on text along with the details of the loss assessor
You can coordinate for a suitable time with the surveyor and he will conduct the survey as per your convenience
There are certain documents that you need to provide to the assessor, such as vehicle type and severity of the damage
You also need to inform him/ her about the requirement of the claim processing team to settle your own damage claim
Coordinate with the surveyor again if re-inspection of the vehicle was advised by him.
Based on the survey claim settlement will be done
Documents Required for Filing a Car Insurance Claim
Keep the following documents ready while registering a claim with the Insurer-
Copy of Police FIR
Claim form duly signed by the policyholder
Fitness Certificate for commercial vehicles
Driving License
Car Registration Certificate (RC)
Insurance documents with the endorsement
The insurer will settle your claim within a week from the date of submission of all the required documents.
How to Get your Online Car Insurance Quotes at PolicyBazaar?
On PolicyBazaar, you have to fill a few simple details like make of the car, model, variant, year of manufacture, etc. You will then get car insurance prices from various insurance providers. This way you will get customized quotes, one which saves money on premiums and is also the best fit as per your needs.
You must be familiar with the following terms while filling the form:
Car Make, Model and Variant
This information is critical to calculating the base premium. A luxurious, powerful and expensive car will attract more premiums. For e.g. an SUV car will always have a higher premium than a family car.
Year of Manufacture
The manufacture year of your car lets the insurance company assess its Insured Declared Value (IDV) that facilitates the underwriter to decide the annual premium for your car.
CNG Fitted Car
Being more vulnerable to combustion, a CNG fitted car is usually insured at a slightly higher premium than a plain petrol/diesel car.
Additional Covers
You need to mention whether you do or do not want to get a cover on electrical and non-electrical accessories fitted in your car. Most insurers provide a cover for your car accessories at an additional premium of 4% on its value.
Ans: The policyholder should renew his car policy before the expiry of his existing policy. This will ensure that there is no break in policy and you can continue to avail benefits such as no claim bonus.
Ans: Zero Dep refers to Zero depreciation car insurance. It is an add-on cover that allows the policyholder to get compensation up to the insured declared value (IDV) or current market value of the car without taking depreciation into account. You need to pay an extra premium amount to avail benefits of zero DEP in your 4 wheeler insurance policy.
Ans: The limit to filing a claim for 4 wheeler insurance per year varies from one insurance provider to another. Most insurance companies allow multiple claims in a year until the IDV is not exhausted. You should check your policy document to know the exact number of times you can claim your four-wheeler insurance policy in a year.
Ans:Bumper to bumper car insurance refers to the insurance policy that provides complete protection to the insured car without considering the depreciation of its parts. In other words, this type of four-wheeler insurance allows the policyholder to obtain compensation up to the market value of the car in case of damage or loss to the car. However, it attracts about 20% higher premiums than your regular 4-wheeler insurance policies.
Ans: Insured declared value (IDV) is the maximum amount to be paid by an insurer at the time of a claim if the vehicle is a total loss or stolen. It is the sum insured and is fixed at the commencement of the policy period for each insured vehicle.
Ans: If you have LPG or CNG fitted in your, you have to get it endorsed in your Registration book or RC. Then, inform your insurer about the change to get it endorsed in your four-wheeler insurance policy. As the cost of the premium will differ basis on the fuel type of your car.
Ans: Hypothecation is used for creating charges against the security of movable assets. The possession of goods remains with the borrower. For instance, in case of a car loan, the vehicle remains with the borrower but the ownership is hypothecated to the bank. It means the bank has a right to sell the vehicle if there is any default in repaying the car loan. To add hypothecation in car insurance policy: Letter from the bank or financer/endorsed RC copy has to be submitted at the office of the insurance company. To delete hypothecation in a motor insurance policy: No objection certificate (NOC)/endorsed RC copy has to be submitted at the office of the insurance company. In case of a hypothecated vehicle, it is important to obtain NOC from the financer if the payment has to be obtained by the insured. Otherwise claim amount will be paid to the financer for losses other than theft.
Ans: Your comprehensive insurance policy covers- Liability to the third party, accident by external means, fire, explosion, self-ignition, lightning, riots, strikes, terrorism, malicious acts, earthquake, flood, storm, landslide, transit by rail, road, waterways, air or lift, burglary, theft or housebreaking.
Ans: Cashless facility means you don’t need to pay anything for repair work and your insurance company will directly pay it to the garage. If you have signed up for the cashless facility, all you have to do is take your vehicle to the preferred workshop of the insurance company. The workshop will contact the insurer and settle the claim.
Ans: An IDV is calculated on the basis of the car manufacturer’s listed selling price of the brand and model, which will include local duties/taxes, excluding registration and insurance. Different depreciation slabs for arriving at IDV are detailed below:
Age of the vehicle
Depreciation value in %
Not more than 6 months
5
More than 6 months but below 1 year
15
More than 1 year but below 2 years
20
More than 2 years but below 3 years
30
More than 3 years but below 4 years
40
More than 4 years but below 5 years
50
For those vehicles which are obsolete or aged over 5 years, the depreciation applied varies from one insurer to another.
Ans: No claim bonus (NCB) is a discount in premium offered by insurance companies if the owner of a vehicle has not made a single claim throughout the motor insurance policy term.
Ans: No single policy is the most economical for everyone. Different people can find different insurance policies economical depending on the coverage and the add-on covers. You should compare the coverage and the premium quoted by different insurance providers to find out the most affordable car insurance plan for you.
Ans: If you sell your car, you need to transfer the four-wheeler insurance policy on the name of the new owner. Follow the steps given below to transfer the insurance to the new owner:
You need to get a sale affidavit made with details of the transfer, details of the new owner and details of payment. It should be notarized and signed.
Fill up the RTO transfer forms and obtain a clearance certificate from your Regional Transport Office (RTO).
Ans: You can get the duplicate copy of your four wheeler insurance policy online by downloading it from your motor insurer’s website. All you need to do is log into your account on the website and enter the required details to get the copy of your policy on your email. You can download the duplicate policy from the email sent to you.
Ans: In case you want to know the availability of a new car insurance plan, you can check it on the insurance company’s website or by contacting them over the phone. You can also check the availability of four wheeler insurance plans by multiple insurers at brokers websites, such as policybazaar.com.
Ans: In case there is a mistake in your car policy document, you should immediately notify your insurer about it. Provide evidence of the correct information and request your insurer to rectify the mistake. Once the insurer receives the evidence, they will pass an endorsement or issue a new policy document with the correct information.
Ans: Motor insurance companies offer lesser premiums for policies purchased online because their overall business cost reduces when operating online. Sale of online insurance policies helps them to cut several operating costs, such as agent commission, distribution costs, stationery cost, etc., that are indispensable in offline mediums.
Ans: Yes. A four wheeler insurance policy document issued online is legally valid under the motor laws of India. However, make sure that the policy has been purchased from an IRDAI registered insurance company.
Ans: If you have lost your online policy document, you need to follow the steps given below to obtain a duplicate four wheeler insurance policy:
Immediately inform your motor insurer about the loss of your car policy document
File an FIR with the Police regarding the loss of the document
Write an application to your insurer requesting them to issue duplicate policy document. Mention details, such as policy number, your name, issuance date, how you lost the policy, etc., in the application letter
Publish an advertisement in a state newspaper mentioning the loss of your policy document
Get a notarized indemnity bond, stating your full name, with signatures of two witnesses
Submit the application letter, indemnity bond and the copy of the FIR to the insurer
After receiving all the documents, your insurer will issue the duplicate policy document
You can also download the copy of your online policy from your insurer’s website by providing the required details.
Ans: Under certain types of claims, your motor insurer may need you to file a First Information Report or FIR with the Police as part of the claim process. For instance, claims arising out of car theft or third party liabilities will require a Police FIR. On the other hand, claims arising out of car damages due to natural calamities may not need a Police FIR.
Ans: There iis no standard time period followed by all insurance companies to settle a vehicle insurance claim. Claim settlement period varies from one insurer to another. For example, one insurer may settle your claim within 7 days whereas another may settle it within 14 days. Moreover, claims with complexity usually take more time to be settled than simple claims, such as a car dent.
Ans: To know the status of your four wheeler insurance policy, you can check the policy start date and expiry date mentioned in your policy document. Your policy will be active or valid in the period between the policy start and expiry date. On the other hand, your policy will be inactive before the start date and will get expired after the expiry date.
Ans: To transfer a vehicle insurance policy to your name, you need to follow the steps given below:
Fill up Form 28, Form 29 and Form 30 available with the RTO bearing the previous policy owner’s signature
Submit the filled-in forms to the RTO along with proof of vehicle sale
Get the Clearance Certificate from the RTO
Submit the required documents to the motor insurance company, including application form, old policy document, original RC with your name on it, NOC from the previous owner, etc.
Pay the transfer fees
The policy will be transferred to your name and new policy document will be issued
Ans: You need to insure your car under a valid four wheeler insurance policy because third party insurance cover is mandatory in India. As per the Motor Vehicles Act, 1988, cars without a valid insurance policy are not allowed to ply legally on Indian roads.
Besides, four wheeler insurance shields your vehicle from unforeseen damages or losses arising out of incidents, such as fire, third party liabilities, natural calamities, theft, accident and manmade disasters.
Ans: One of the benefits of buying or renewing vehicle insurance online is that it is a fast process and does not take a lot of time. If you have all the required details regarding your four wheeler and the previous policy handy, you will not take more than a few minutes to buy/ renew your car policy online.
Ans: At the time of renewing your expired car policy, your vehicle may need to undergo an inspection. While some insurers allow self-inspection, others may send a surveyor to assess the condition of your car. In the second case, you will have to schedule a surveyor appointment by contacting your insurance provider. Once the survey is complete, follow the steps given below to online renew your expired four wheeler insurance policy:
Visit the website from where you want to renew your vehicle insurance
Go to the option of online policy renewal for cars
Enter your expired policy number and other requested details
Review the details of your vehicle
Select the type of policy coverage
Upload the pictures of your car (in case of self-inspection)
Ans: If you have purchased four wheeler insurance online, you will most likely receive your policy document on your registered email id within a few minutes of paying the premium.
Ans: Yes, online car insurance renewal is absolutely safe. In fact, online buying/ renewal of insurance is considered safer than the offline method because of secured payment gateways that reduce the chances of fraud.
Ans: The cost of renewing your 4 wheeler insurance policy depends on several factors, such as the age of the car, its engine cubic capacity and the make & model of the car. The type of insurance coverage you choose and the geographic area where you drive your car also influence your premium. Moreover, any add-on covers, deductibles and your No Claim Bonus also affect the renewal premium of your insurance policy.
Ans: Mostly, motor insurance companies do not cover passengers in the vehicle under four wheeler insurance. However, passenger cover is offered as an add-on by motor insurers in India to provide personal accident cover for the unnamed passengers travelling in the car.
Ans: Most motor insurance companies only cover accidental damages to the vehicle’s tyres under four wheeler insurance. Any non-accidental loss or damages to the tyres are not covered. However, you can buy tyre protect add-on cover to keep any non-accidental loss or damages to your car’s tyres covered under your four wheeler insurance policy.
Ans: Yes. Any loss or damages caused to your car due to electrical fires (or fire resulting out of a short-circuit) are covered under four wheeler insurance.
Ans: Yes. Motor insurance with a minimum of third party cover is mandatory in India for all car owners. Under the Motor Vehicles Act 1988, cars without third party insurance are not allowed to legally ply on public roads. People who violate this law can be punished.
Ans: In case your car has been stolen, you must file an insurance claim with your motor insurer. Take a look at the process of filing car theft claims under four wheeler insurance:
File an FIR with the Police as soon as your car gets stolen
Intimate your insurer about the theft of your car
Inform your RTO about the theft
Submit all the required documents, including the claim form, FIR copy, RC, etc., to the insurer
Obtain the No Trace report from the Police
The insurer will process your claim and pay the IDV of your car in about 90 days
Ans: You can cancel an insurance claim by contacting your motor insurer and informing them about your decision to cancel it. You can also speak to your vehicle surveyor about cancelling the claim in case there is an inspection scheduled.
However, you cannot cancel any third party liability claims with your insurer where you are at fault for causing accidental third party loss or damages.
Ans: If you renew your expired four wheeler insurance policy within 90 days of the expiry date, then your NO Claim Bonus (NCB) will remain intact. However, if you renew the expired policy after 90 days, you will lose your NCB.
Ans: If you are caught driving your car without a valid insurance policy for the first time, you will be liable to pay a penalty of Rs 2000 or/and will be jailed for up to three months. In case you are caught without valid insurance for the second time, you will have to pay Rs 4000 as fine or/and serve up to three months in jail.
Written By: PolicyBazaar - Updated: 19 October 2020
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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