What is Car Insurance?
A car insurance policy provides financial protection to policyholders against accidents, theft, total loss, natural calamities, man-made disasters, fire, and third-party death or property damage. Major types of motor insurance covers include Third-Party car insurance, Standalone Own-Damage (OD) car insurance, and Comprehensive car insurance.
It is a legal contract under which a policyholder pays a premium to the insurer for availing compensation when the insured car meets with unforeseen incidents such as accidents, natural calamities, theft, fire and third-party damages.
The insured can also buy a Personal Accident Cover to cover under both third-party liabilities cover and own-damage cover. Ensure that you are the registered owner of the car and hold a valid driving license to avail the coverage of Rs 15 lakh.
Key Features of Car Insurance Policy
| Categories |
Key Features |
| Third-party damages |
Death, injuries & property damages |
| Own damage cover |
Available under standalone and comprehensive |
| No Claim Bonus |
Up to 50% |
| Car insurance premium |
Starting at ₹2094* |
| Add-on covers |
More than 10 add-ons such as Zero dep, NCB protect, Roadside assistance,etc. |
| Buying/Renewal Process |
Online |
| Personal accident cover |
Up to ₹15 lakh |
| Cashless Garages/Repairs |
Available |
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Types of Car Insurance Policies
In India, there are three types of car insurance policies offered by the general insurance companies i.e. third-party car insurance, comprehensive insurance, and stand-alone insurance. You can choose a car insurance plan according to your budget and need.
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Third-party or liability only policy is mandatory for all the car owners to drive on the Indian roads. Compensation is provided for damages/injuries caused to a third-person, and property (up to Rs 7.5 lakh). However, it does not cover damages caused to the insured car. Therefore, it is recommended to buy a comprehensive or standalone car policy.
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A comprehensive car insurance policy covers both third-party liabilities and own damages. Under this plan, the insured person can avail cashless repair services at the network garages. Furthermore, the policyholder can enhance the policy coverage with add-on benefits or riders such as roadside assistance cover, zero depreciation cover, etc. by paying a nominal amount of extra premium.
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A stand-alone damage policy financially covers the accidental damages caused to the insured car. It can be purchased with an active third-party insurance policy. In India, as per the Motor Vehicles Act, it is mandatory to hold at least a third-party liability cover for all car owners. However, having stand-alone insurance offers financial help in case of own-damages to the insured car and third-party liabilities as well.
Standalone OD vs Third-Party vs Comprehensive Car Insurance Cover
| Car Insurance Coverage |
Third-party Car Insurance Cover |
Standalone OD Cover |
Comprehensive Car Insurance Cover |
| Third-party property damage |
Yes |
No |
Yes |
| Third-party bodily injury |
Yes |
No |
Yes |
| Own damages of car |
No |
Yes |
Yes |
| Car theft |
No |
Yes |
Yes |
| Personal accident coverage |
Yes |
Yes |
Yes |
| Availability of add-ons |
No |
Yes |
Yes |
Coverage Under Car Insurance Policy
- Damages caused to the insured vehicle due to any natural calamities and man-made disasters
- Losses are covered if the insured car is stolen or is declared as a total loss
- Coverage for the third-party liabilities in case of an accident
- Damages are covered when the insured vehicle meets with an accident
- Damages caused to the insured car due to fire explosion or self-ignition
- Damages sustained by the insured vehicle while it was in transit via road, railway, or airways.
- Damages caused due to regular wear and tear
- Damages arising due to mechanical or electrical breakdown of the insured car
- Damages sustained by the insured car when the driver was found under the influence of an intoxicating substance or alcohol
- Damages sustained if the owner-driver of the insured car does not have DL, RC, PUC certificate, and the valid car insurance policy
- Loss arising to the insured car out of various contractual liabilities
- Damages sustained to the insured car outside the location mentioned in the policy documents
- Damages or loss caused to the insured car if being used for commercial purposes.
How to Calculate Car Insurance Premium?
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:
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Third-party cover premium - The third-party car insurance premium is decided by the Insurance Regulatory and Development Authority of India (IRDAI), which varies with the cubic capacity of the insured car.Here is what it looks like for the current year:
| Cubic Capacity (CC) |
Third-party Car Premium (in Rupees) |
| Less than 1000 CC |
₹2,094 |
| In between 1000 CC – 1500 CC |
₹3,416 |
| More than 1500 CC |
₹7,897 |
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Own-damage (OD) cover premium - The OD cover is optional. However, the premium for own-damage cover depends upon the IDV (Insured Declared Value) of the car which is decided by the Indian Motor Tariff.
There is a simple formula to calculate OD premium - IDV x (traffic rate) - Discounts + Add-on Covers (riders)
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Personal Accident cover premium - Personal accident cover is provided in both third-party and comprehensive car insurance policies. The coverage limit is upto Rs 15 lakh. However, if you want to enhance the coverage limit, you can also buy it as an add-on cover by paying a nominal extra premium.
Furthermore, there are some additional factors that might impact the car insurance premium-
- IDV - IDV refers to the Insured Declared Value, which is the current market value of the car. It is the maximum amount for which the policyholder can raise a claim during the policy term. The higher the car's value means higher IDV and vice versa.
- Make & Model - The make and model of the car you want to get insured plays a significant role in deciding the premium. Insuring a higher-end car model would be costlier than insuring a base model of the same car. The reason being the higher cost of repair or replacement of their parts.
- Fuel Type - Repairing a diesel or CNG car is an expensive affair than repairing petrol cars. Therefore, insuring a petrol car will cost less in comparison with the other fuel-types like CNG, LPG, and EV.
- Location - The geographical location of the insured also impacts the final cost of policy premium. Usually, the premium is higher in metropolitan cities as it has denser traffic, and also considering the higher probability of accidental damages on the city roads.
- Year of Manufacture - The manufacturing year of the insured vehicle is also taken into consideration when deciding the car insurance premiums. Usually, insuring newly launched vehicles can be expensive since their spare parts might not be available in the market.
- Add-on Covers - Enhancing the policy coverage with a car add-on cover or a rider benefit like roadside assistance, zero depreciation will increase the premium. However, it can be purchased only with comprehensive insurance plan. Therefore, buying add-on covers will increase the premium.
- Claim History - If the policyholder has not filed any claims during the policy term, the insurer provides the benefit of a No Claim Bonus on their own-damage premium.
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Best Car Insurance Companies in India 2022
The following table shows the complete list of the best car insurance companies in India with their incurred claim ratio and the number of network garages offered by the car insurers:
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Benefits of Buying Car Insurance Online
Buying car insurance online is a common practice today. By purchasing a 4-wheeler insurance policy online, you can insure your car against any damage due to an accident, theft, fire etc. within 2 minutes. Offering quick comparisons and safe payment modes, online buy has a clear win over offline mode because of the following reasons-
| Categories |
Purchasing Car Insurance Online |
Purchasing Car Insurance Offline |
| Buying Process |
Can be purchased online from the insurer’s official website or Policybazaar.com using a smartphone or laptop. |
Requires physical visit to the insurer’s office or by connecting with the agent |
| Insurance Premium |
Lower premiums due to the absence of intermediaries. |
Higher premiums due to higher operational costs and involvement of agents. |
| Convenience |
More convenient as it only requires a smartphone and a good internet connection. |
Less convenient as customers need to meet with the insurance agent. |
| Transparency |
More transparent as there is no role of an agent or intermediary. |
There is less transparency as agents play a big role. |
| Customer Support |
Easy to connect with the customer support team 24x7 via emails and calls. |
Policyholders can connect with the customer support team or the agent during office hours. |
| Paperwork |
Minimum to zero paperwork. |
May require a lot of paperwork. |
| Renewal Process |
Easy to renew as the policyholder’s details are auto-saved with the insurer |
The renewal process is cumbersome and takes time. |
Factors to Consider While Selecting Car Insurance Policy
While selecting a car insurance policy, there are multiple factors like policy scope of coverage, claim settlement ratio, cashless repairs, etc. that can help you select the right one. Some of them are listed below-
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Scope of Insurance Coverage
Third-party insurance is a mandatory cover that every car owner needs to buy. However, if you are looking for extensive coverage, it is recommended to choose comprehensive coverage. Moreover, check all the inclusions & exclusions of the vehicle insurance policy before buying it.
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Compare Car Insurance Online
You can compare various car insurance plans online and choose the one which fulfills all your requirements. You can compare the plans based on premium, IDV, network garages, claim settlement ratio, customer support services, etc.
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Claim Settlement Ratio & Process
The claim settlement ratio shows the number of claims settled by the insurer against the total number of claims raised by the customer. Thus, checking the ratio online will help you gauge the insurer's ability to settle the claim.
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Network Garages
Before availing the services offered by the insured, check the number of network garages registered in the area where you reside. It will broaden the scope of availing the cashless facility without paying the cash from your own pocket.
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Add-on Covers
The insurance companies offer add-on covers with the comprehensive insurance policy to enhance the policy coverage and maximise the policy benefits. Depending upon the requirement and budget, you can choose the add-ons with your plan.
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Customer Assistance
24x7 customer assistance is one of the vital factors to look at while choosing an insurance company. This will help you to settle your queries and claims at your convenience.
Add-On Covers in Car Insurance Policy
Add-ons are optional covers that a policyholder can purchase to enhance the coverage of his/her vehicle insurance policy. These 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.
Let's discuss Car Insurance Add-Ons in more detail:
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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 at the time of claim. 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.
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No Claim Bonus Protection Cover
An NCB Protect cover allows a policyholder to save up on his/her No Claim Bonus discount even after making a claim during a policy year. A No Claim Bonus is a discount offered to policyholders for not making a claim during a policyholder. As soon as a claim is made, the discount becomes zero. However, with the help of this add-on, you can retain your NCB even after making a claim.
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Engine Protection Cover
An engine is one of the most important parts of a car. However, a car insurance policy does not cover mechanical or electrical failure sustained by the engine of a car. An engine protection cover compensates for the cost of fixing or replacing 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 differential parts.
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Pay As You Drive Cover
Pay as you drive is an add-on cover that allows policyholders receive up to a 10% discount on own damage premium if he/she has driven for less than 15,000 km in a policy year. Currently Policybazaar.com is offering this add-on in association with Digit car insurance plan.
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Motor Floater Cover
Another newly introduced add-on a Motor Floater policy is beneficial for car owners who own more than one car. With this add-on, you can insure all your cars under one comprehensive car insurance policy and save yourself from paying higher premiums.
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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 not covered under a standard car policy. Consumable items include screws, nuts and bolts, washers, AC gas, grease, lubricants, bearings, clips, engine oil, distilled water, oil filter, brake oil, fuel filter, etc.
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Key Protection Cover
Once in a lifetime everyone would have lost or misplaced their car keys. In such cases, the Key Protect cover can offer help by covering the costs incurred on the replacement and repair of your car keys.
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Daily Allowance Benefit
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 a daily travel allowance if the vehicle has to be in the garage for more than 3 days (varies from one insurer to another.
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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.
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Cover for Car Accessories
By simply opting for a separate add-on policy, you can avail coverage for your car accessories, which a normal 4 wheeler insurance policy may not cover.
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Deductibles
Deductibles are a certain percentage of the claim amount that the insured has to pay from their 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 the premium later on.
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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.
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Roadside Assistance
In case you get stuck somewhere in the country within the specified distance as mentioned in the insurance policy, the insurer under this cover provides you with roadside assistance and sends a mechanic to your location to fix it.
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Return To Invoice
Under Return to invoice add-on, if your car gets stolen or gets damaged beyond repair that is known as a total loss then the insurer will provide coverage as per the amount of invoice that you paid at the time of purchasing the car.
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Personal Possession Cover
With this add-on cover, you get the coverage in case your personal possessions get damaged in an unfortunate car accident or sets stolen from the car. There is a limit on a coverage amount that varies from insurer to insurer.
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Tyre Protection Cover
A comprehensive plan does not provide coverage in case the tyres of the car get damaged. You will have to purchase a separate tyre protection add-on called Tyre Protect cover to cover your car’s tyres.
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Rim Damage Cover
In case the rim of the car gets damaged then this add-on cover will come in handy. Under rim damage add-on cover, the insurer provides coverage for the replacement of the damaged rims.
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Passenger Cover
Under this add-on, you get coverage in case any of the passengers get injured in the accident. The insurer will provide financial aid for the medical expenses.
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Add-ons for your car insurance
How to Compare Car Insurance Online?
Compare car insurance online from the top four-wheeler insurance companies before renewing. Here are a few points that you should consider when comparing a car insurance policy online:
- Premium - The policy premium will vary as per your car’s IDV, make, model, fuel type, and also the policy tenure that you will choose. The premium for two insurers for the same coverage benefits can also vary. Therefore, it makes sense to compare and choose the best one.
- IDV - Based on the insured car’s market value the IDV is calculated. And with routine wear and tear, a cars market value reduces. Therefore, the newer the car is the higher will be the market value and vice versa. The newer a car is, the higher is its value, and also the sum insured and the premium. But a new car is less susceptible to risks, whereas if your car is old, the insurer will conduct an inspection before insuring it.
- Network Garages - The number of network garages an insurance company offers plays an important role, since you can avail cashless repair services here. While comparing car insurance online you can always pick the one offering maximum network garages near you.
- Claim Settlement Ratio - CSR gives an idea about the insurance providers ability to settle its customer’s car insurance claims. The higher the claim settlement ratio, the better it is. A claim ratio of 85% and above reflects positively on the insures claim settlement history.
Moreover, you can also consider customer reviews, claim settlement procedures, availability of add-on covers, etc.
To get an instant quote, It takes a few minutes to buy or renew car insurance online. You need to enter your vehicle details, personal contact information and other asked details to choose the car policy as per your need.
How to Buy Car Insurance Online?
To buy a car insurance policy online from Policybazaar.com, follow the steps given below:
- Visit the ‘Car Insurance’ page from the ‘Insurance Products’ dropdown
- Enter car name or select any of the other two options from ‘Brand New Car’ or ‘Proceed without a car number’
- Select your car details like model, variant, fuel type, and registration date
- Fill in the registration form and proceed further.
- From the mentioned four-wheeler insurance plans of best car insurance companies, select the one that suits your budget
- You can also add or remove any add-on as per your requirement from the ‘Addons and Accessories’ tab. However, you can only purchase add-ons if you are purchasing a comprehensive plan.
- Once you are done with it, you can proceed to make the payment online
- You can use your debit/credit card, UPI, and net banking to pay the premium amount.
- Once the payment is done, the insurer will send you the policy documents to your registered email ID as well as your home address.
Car Insurance for Popular Brands in India
Benefits of Car Insurance Renewal Online
A new car insurance has a validity period after which it needs to be renewed. Thus, to continue receiving coverage from your existing car policy, you need to renew car insurance online before its expiry date. Here are some major benefits associated with online car insurance renewal-
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Easy Comparison
When you renew your car insurance online, you can easily compare the plans offered by multiple insurers. This will also help you understand the additional services offered by the plan, such as a free pick-up and drop facility, 3-day repair assistance, cashless assurance, and self-video claims.
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Easy Customisation
You can easily modify the coverage of your car insurance policy during renewal by adding or removing the add-on covers. However, before tailoring your policy with an add-on cover, remember that your car's premium depends on it.
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Easy to Switch the Insurer
If you are not satisfied with your current insurer or want to enhance your coverage benefits you can switch to another insurer at the time of renewal. Moreover, if you find another insurer offering better features and services at a premium that suits your pocket then you can do that from the comfort of your home.
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Secured & Transparent
Secured payment gateways make renewing a car insurance policy a secure and transparent process. Premium payment can easily be done using credit cards/debit cards/and UPI.
How to Renew Car Insurance Online?
Car insurance renewal online is an easy process and can be done in a few simple steps. Follow these steps for online renewal of your four-wheeler insurance policy from Policybazaar Insurance Brokers Private Limited:
- Step 1: Go to the car insurance renewal section
- Step 2: Enter your car number on the given form
- Step 3: Select your car details like model, variant, fuel type, registration year, etc.
- Step 4: Select previous car policy expiry date and claim details
- Step 5:Fill in the given registration form with your name, email and mobile number
- Step 6: From the given car insurance renewal plans, choose the desired plan along with additional covers
- Step 7: Select the No Claim Bonus discount received on previous four-wheeler insurance policy
- Step 8:Pay the verified insurance premium online with the help of a credit card, debit card or through net banking
- Step 9: Once the payment is complete, your car insurance policy will be renewed. You will receive the policy document for your renewed car insurance on your registered email id. You can also download a copy of the policy document and get a printout any time you want.
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How to File a Car Insurance Claim?
Understanding the right steps to raise a car insurance claim is critical as your insurer can reject your claim for a lot of reasons. So make sure you understand what all is required to be done while raising a car insurance claim. Follow the below mentioned steps to conveniently raise a valid four wheeler insurance claim:
Step 1: Raise a claim request – Immediately share details of the accident with your insurer after the accident occurs. Make sure that you properly document and share photographic evidence to support your case.
Step 2: Car Inspection – After the claim is registered, the insurer will send a surveyor for surveying the claimed damage. You will be required to submit some documents to the surveyor for claim verification process. Make sure you keep them handy.
Step 3: Sending the car for repair – Once the inspection is complete, you can send the car to a network garage for conducting the repairs.
Step 4: Claim Settlement – If you have a cashless claim settlement, the insurer will directly settle the repair bills with the network garage. However, if you have opted for reimbursement claims, you will be first required to pay the bills and then raise a reimbursement claim.
Documents Required for Filing a Car Insurance Claim
Whether it is a theft claim, accidental claim or a third-party claim, the insurance company requires a host of documents to be submitted. Mentioned below is the list of different documents that you would require when registering a claim for own damages, injuries, or property damages.
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In case of Third-party Claims
To raise a third-party car insurance claims, the insured needs to keep the following documents ready-
- Copy of Police FIR
- Copy of RC (Registration Certificate) and DL (Driving License)
- Stamp needed forcompany-registered vehicle’s original documents
- Duly filled and signed third-party car insurance claim form
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In case of an Accident
To register a claim for accidental injuries, the insurer would require the following documents-
- Duly filled and signed claim form
- Car insurance policy documents
- Copy of RC (Registration Certificate) and DL (Driving License)
- Copy of the FIR or Police Panchanama registered
- Tax receipt
- The estimated car repair cost
- Original repair bills and payment receipts
- Car inspection address details (when the inspection is not done in the garage)
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In case of Theft Claims
When filing a claim for vehicle theft and related matters, keep the following documents ready-
- Car insurance policy documents
- Police FIR
- Tax payment receipts
- Original car registration book
- Letter of Subrogation
- Theft declaration from the RTO
- Previous year policy details like name of the insurer, duration of the policy, policy number, etc.
- Forms 28, 29, 30 & 35
- Items like warranty cards, duplicate keys, booklets, etc.
- Official intimation to the RTO regarding theft and discontinuation of the insured vehicle
- Claim Discharge Voucher with a signature on a revenue stamp
FAQs About Car Insurance
General
Coverage
Claims
Renewal
Add-Ons
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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.
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Ans: If you get LPG or CNG fitted in your car, you have to get it endorsed in your car Registration Certificate 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 amount will differ basis on the fuel type of your car.
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Ans: Hypothecation is used for creating charges against the security of movable assets. The possession of goods remains with the borrower. For instance, in the 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 policyholder. Otherwise claim amount will be paid to the financer for losses to the car other than theft.
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Ans: The IDV is calculated by subtracting the depreciation on the car from the manufacturer’s listed selling price of the car model. The manufacturer’s selling price includes local duties/taxes but excludes registration and insurance cost. Different depreciation slabs to calculate the 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 |
The applicable depreciation on vehicles, which are obsolete or aged over 5 years, varies from one insurer to another.
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Ans: If you sell your car, you need to transfer your four-wheeler insurance policy to the name of the new owner. You can follow the steps given below to transfer your motor 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).
- Fill up the new proposal form
- Attach the documents listed above
- Submit it to your insurer
- The policy will be transferred within 14 days
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Ans: You can get a duplicate copy of your four-wheeler insurance policy online by downloading it from your motor insurer’s website or from Policybazaar.com. All you need to do is log into your account on the website and enter the required details to get a copy of your policy on your email. You can download the duplicate policy from the email sent to you.
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Ans: In case you want to know the availability of a 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 Policybazaar.com.
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Ans: Follow the step-by-step procedure given below to download your car policy/ certificate online:
- Visit the website from where you had purchased car insurance for your car
- Go to the option of downloading the car insurance policy online or log into your account on the website
- Enter your car number and other requested details, including your mobile number and email id
- Your insurer may send an OTP on your registered mobile number
- Enter the OTP in the provided space and submit it
- The insurer will send the copy of your 4 wheeler insurance policy/certificate on your email id
- Download your car insurance policy/certificate from the email
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Ans: There are multiple ways to find your vehicle insurance policy number:
- You can find the policy number on the insurance certificate or policy document issued by your motor insurer.
- You can check it online if you have an account at the insurer/ insurance brokers’ website.
- If you purchased your four-wheeler insurance through an agent, you can ask him/ her to tell you the policy number.
- You can also visit your insurer’s nearest branch or call them to know your policy number.
- You can check it at the website of the Insurance Information Bureau (IIB), which maintains the record of all motor insurance policies in India.
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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.
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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 or broker website.
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Ans: If you have lost your online policy document, you need to apply for its duplicate copy. 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 a 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 copy of the FIR to the insurer
- After receiving all the documents, your insurer will issue the duplicate policy document
You can also download a copy of your online policy from your insurer’s website by providing the required details.
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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 expire after the expiry date.
You can also check the status of your policy online on the website of the Insurance Information Bureau (IIB) or VAHAN e-services. You only have to enter the details of your car on either of the websites and submit them. The details of your car insurance policy, including the policy expiry date, will be displayed.
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Ans: To transfer a car 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 the proof of vehicle sale
- Get the Clearance Certificate from the RTO
- Submit the required documents to the car insurance company, including application form, old car 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 a new policy document will be issued to you.
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Ans: If you renew your expired four-wheeler insurance policy within 90 days of the policy 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.
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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. 2.000 or/and will be jailed for up to three months. In case you are caught without valid car insurance for the second time, you will have to pay Rs 4000 as a fine or/and serve up to three months in jail.
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Ans: If you change your city, your car insurance premium may get affected. This is because the premium for a car depends on the geographical location where it is used. If you move to a more traffic-prone place, you will have to pay a higher premium. Moreover, you will also have to update your contact details with your insurer.
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Ans: No claim bonus (NCB) is a discount on renewal premium offered by insurance companies if the vehicle owner has not made a single claim throughout the previous motor insurance policy term.
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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.
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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 due to wear and tear are not covered. However, you can buy a 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.
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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.
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Ans: Yes, your motor insurer will cover the accidental damages caused to your car when someone else is driving, provided you had allowed that person to use your vehicle. This is because car insurance covers the liabilities arising out of the insured vehicle and not the policyholder. However, your insurer may not cover third party liabilities resulting from this accident and ask the person at fault to pay for them if he/she has a car insurance policy. Therefore, you must check with your insurer if you face such a situation.
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Ans: Yes, you can get your newly purchased car accessories covered under your insurance policy in the middle of the policy tenure. However, you will have to write an application to your insurer requesting them to pass an endorsement to cover them in your policy. You may have to pay an additional premium as your original policy coverage will get altered. After you have shared the details of the accessories and paid the additional premium, the insurer will pass an endorsement.
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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.
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Ans: Cashless facility means you don’t need to pay anything for the repair of your car. Instead, your insurance company will directly pay the bill amount to the garage. If your insurer offers 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 repair bill with them.
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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.
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Ans: There is no standard time period for all insurance companies to settle a vehicle insurance claim. The claim settlement period varies from one insurer to another. For example, one insurer may settle your claim within 7 days whereas another one may settle it within 14 days of raising a claim. Moreover, claims with complexity usually take more time to be settled than simple claims, such as a car dent.
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Ans: In case your car has been stolen, you must file an insurance claim with your motor insurer at the earliest. Take a look at the process of filing car theft claims under four-wheeler insurance below:
- 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.
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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.
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Ans: No, you should avoid raising a claim for minor damages to your car as it will impact your No Claim Bonus. You must raise claims only for major car damages that you cannot afford.
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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.
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Ans: One of the benefits of buying or renewing car insurance online is that it is a fast process and does not take a lot of time. If you have all the required details about your four-wheeler and the previous policy handy, you will not take more than a few minutes to buy/ renew your car policy online.
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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 car 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)
- Pay the policy renewal premium online
- Your expired car policy will be renewed
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Ans: If you have purchased/ renewed 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.
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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.
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Ans: The cost of renewing your four-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, the opted add-on covers, deductibles and your No Claim Bonus also affect the renewal premium of your insurance policy.
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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.
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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.
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Ans: Mostly, motor insurance companies do not cover passengers travelling in the insured vehicle under four-wheeler insurance in case of an accident. Only the owner-driver of the car is covered for personal accident. 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.
