Car Insurance

FAQs About Car Insurance Policy

• Q: What is Car Insurance Policy?

  Ans: Car Insurance is a type of four-wheeler insurance policy that provides financial coverage to the beneficiary of the car policy if your car is damaged in an accident or natural calamity. A car insurance policy helps to save you money if you're involved in an accident or the vehicle is damaged in some way.

• Q: When should you renew car insurance policy?

  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.

• Q: What is Zero Dep in Car Insurance Policy?

  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.

• Q: How many times we can claim car insurance in a year?

  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.

• Q: What is bumper to bumper Car Insurance policy?

  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.

• Q: What is IDV (Insured Declared Value) in Car Insurance Policy?

  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.

• Q: If I fit CNG or LPG kit in my car, is it necessary to inform the Insurance Company?

  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.

• Q: How can I add/delete Hypothecation in my Car Insurance Policy?

  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.

• Q: What are the risks covered by the comprehensive car policy?

  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.

• Q: What is a cashless facility in car insurance?

  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.

• Q: How IDV is calculated in vehicle insurance?

  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.

• Q: What is No Claim Bonus (NCB) in Car Insurance Policy?

  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.

• Q: What happens to the motor insurance policy if I sell my car?

  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

• Q: How do I get a duplicate copy of my car insurance policy online?

  Ans: You can get a 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 a copy of your policy on your email. You can download the duplicate policy from the email sent to you.

• Q: How can I check the availability of a four-wheeler insurance plan?

  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 brokers websites, such as policybazaar.com.

• Q: How can I download a car insurance certificate/ policy?

  Ans: Follow the step-by-step procedure given below to download your car policy/ certificate online:

  • Visit the website from where you had purchased insurance for your car
  • Go to the option of downloading the policy online or log into your account on the website
  • Enter your policy 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 vehicle insurance policy/ certificate from the email

• Q: Where can I find my car insurance policy number?

  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.

• Q: What to do if there is a mistake in my car policy document?

  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.

• Q: Is an online car insurance policy a valid document?

  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.

• Q: What should I do if I lose my online car policy?

  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.

• Q: Do I need to file an FIR to raise a car insurance claim?

  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.

• Q: How long does it take to settle a car insurance claim?

  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.

• Q: How can I check my car insurance policy status?

  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.

• Q: How can I transfer the four-wheeler insurance policy to my name?

  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 the 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 a new policy document will be issued to you.

• Q: How long does it take to buy/ renew car insurance online?

  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.

• Q: How can I renew expired car insurance 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)
  • Pay the policy renewal premium online
  • Your expired car policy will be renewed

• Q: How much time will it take to get my policy document if I buy/ renew car insurance online?

  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.

• Q: Is it safe to online renew a car insurance policy?

  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.

• Q: What is the cost of renewing a car policy?

  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, the opted add-on covers, deductibles and your No Claim Bonus also affect the renewal premium of your insurance policy.

• Q: Does car insurance cover passengers?

  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.

• Q: Does a car insurance policy cover tyre damages?

  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.

• Q: Will my car policy cover electrical fires?

  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.

• Q: What is the insurance claim procedure in case of car theft?

  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.

• Q: What should I do to cancel my claim?

  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.

• Q: What will happen to my No Claim Bonus if I renew my expired car policy?

  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.

• Q: What is the penalty for driving without valid car insurance today?

  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 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.

• Q. Will my insurer cover the accident caused by someone else while driving my car?

  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.

• Q. Should I raise a claim every time my car is damaged?

  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.

• Q. If I buy new accessories for my car in the middle of the policy term, will they be covered?

  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. 

• Q. What will happen to my car insurance policy if I change my city?

  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 risky place, you will have to pay a higher premium. Moreover, you will also have to update your contact details with your insurer.