Can NRIs Buy Car Insurance in India?
Yes, there are no restrictions on NRIs to buy a car and car insurance in India. All NRIs of Indian origin, irrespective of their place of stay, can purchase a four-wheeler insurance policy to protect their precious cars from unforeseen road accidents.
Even if you plan to stay in the country for a few months, you must purchase a motor insurance policy if you drive your car in India. Moreover, buying four-wheeler insurance is also mandatory as per India's motor laws. If you drive without one, you may face legal consequences if caught by the traffic police.
Types of NRI Car Insurance Policies in India
There are three types of four-wheeler insurance policies offered to NRIs in India. These include:
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Third Party NRI Insurance
A third party car insurance aims at compensating against any third-party liabilities arising due to the insured car. This policy covers death and injuries sustained by the third person to an unlimited extent. While for property damage, the losses sustained are limited to up to Rs. 7.5 Lakh.
A third party is a mandatory cover that you must have in India, even if you are an NRI.
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Standalone Own Damage NRI Insurance
An NRI third party insurance does not cover any own damage sustained by the insured car due to a road emergency. To overcome this and financially safeguard your vehicle from such emergencies, you can purchase a standalone own damage car insurance policy along with third-party cover.
This policy covers damages sustained by the insured car due to contingencies like road accidents, theft, fire, etc.
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Comprehensive NRI Insurance
A comprehensive car insurance policy is not mandatory but offers extensive coverage. Also known as package car insurance, this car policy legally and financially safeguards a policyholder against damages arising from uncertain conditions like accidents, fire, theft, natural and manmade calamities, etc. It also covers any accidental third person liability arising from the insured four-wheeler.
Moreover, the coverage of this policy can also be enhanced by purchasing add-ons at an additional cost.
Why Should NRIs Purchase Car Insurance in India?
Purchasing NRI car insurance is necessary in India due to the following reasons:
Fulfills Legal Requirements:
The Indian Motor Vehicles Act of 1988 has made it compulsory for every car owner to have car insurance to drive legally in India. Thus, if you want to avoid paying hefty fines for traffic rule violations in India, purchasing an NRI motor insurance policy is the best practice.
Financial Coverage:
By purchasing an NRI motor insurance policy, you can also get financially covered if your car meets with an unforeseen incident on the road. This policy compensates for damages from natural calamities, manmade acts, road accidents, fire, etc.
Covers Against Theft:
Not having an NRI car insurance policy can also cause heavy monetary losses if your car suffers losses due to theft or burglary. Not only do you lose your prized possession, but you also suffer financial loss. However, by investing in an NRI vehicle insurance policy, you can get compensation for total or partial losses due to theft.
Personal Accident Cover
With an NRI car insurance policy, you can also get personal accident cover for you and your passengers. A Personal Accident cover provides the necessary financial aid against death, bodily injuries and disabilities caused due to an accident.
How to Buy Car Insurance for NRIs in India?
If you are an NRI planning to own a car in India or wish to gift a vehicle to your family living in India, make sure also to buy car insurance online. Below we have mentioned how to buy NRI motor insurance online in just some easy steps:
- Visit the official website of Policybazaar Insurance Brokers Private Limited (Policybazaar.com)
- Select the “Car Insurance” tab on the homepage
- Enter your car number in the given form and proceed
- Select your car details, such as your car’s make, model, variant, RTO, etc
- You will now find a list of third-party and comprehensive NRI four-wheeler insurance plans from multiple insurers
- From the given list, compare car insurance plans and choose the one that suits your budget
- If you also want to enhance your coverage, make sure to include add-ons in your plan
- Check and pay the final premium amount via the desired online payment mode
- Once you have successfully paid the premium, your NRI car insurance policy will be issued. You will receive your car policy papers in your registered email.
Documents Required to Raise a Claim Under NRI Car Insurance
Accidents are unpredictable. In case your four-wheeler meets with one, make sure to inform your insurance provider about it. The insurer will then register a claim under which you will be required to submit the following documents:
- Duly filled and signed claim form
- KYC documents
- Vehicle insurance policy documents
- Copy of vehicle’s registration certificate
- Copy of Police FIR
- Bills and estimates of repair (Reimbursement claims)
