Most of us work hard to buy a vehicle to enjoy our trips or may be to support our business needs. Our car is not only a high value asset but also a highly valued possession. Any damage to our vehicle will lead to huge losses as the cost of repairing or replacing an auto part is quite expensive. Hence it makes sense to buy a comprehensive motor insurance policy to give us the all round protection.
Motor insurance is taken to protect your vehicle from unforeseen risks. Motor insurance policies are indemnity policies. It compensates you for an amount up to financial loss that you have suffered on the vehicle.
What it covers?
A comprehensive car insurance policy covers both natural and manmade calamities such as fire, explosion, lightning, burglary, theft, earthquakes, flood, typhoon, hurricane, storm, cyclone, terrorism, third party liability and personal accidents. The motor car insurance covers the insured party, the insured vehicle and third parties.
Who is it suitable for?
Anybody who owns a car must take a comprehensive car insurance policy.
What it does not cover?
It does not cover normal wear and tear, depreciation etc.
What are the basic types of auto insurance available?
The two basic types of car insurance are third party insurance and comprehensive insurance.
Is it mandatory to have motor car insurance?
Comprehensive policy is optional. However, third-party insurance is mandatory for your car.
What is third party car insurance?
Third Party Car Insurance covers you against any legal liability resulting from accident of your vehicle. It covers damage to property, accidental death or an injury to a third party. The third party liability cover is the minimum insurance required for every car, as made mandatory by the law. Any person caught driving a car without this insurance can be heavily fined. You are insured against death or injury caused by your vehicle to pedestrians, occupant of other vehicles, and outsiders other than passengers, for unlimited amounts.
What does comprehensive package policy cover?
A basic comprehensive package policy covers damage to your vehicle, third party legal liability cover and a personal accident cover to driver (owner) of the vehicle.
A comprehensive package car insurance policy is more expensive but is preferred by most people. The coverage includes damage or theft of vehicle, third party legal liability and personal accident cover for owner or driver. Many new car insurance plans also provide inbuilt roadside assistance cover with comprehensive car insurance cover. The policy coverage can also be extended by opting for add-ons like accessories cover, engine protector, zero depreciation cover, medical expenses etc. However, it does not cover loss or damage caused due to driver is under intoxication or if vehicle is driven by a person not holding an effective valid licence.
When should I report to the police?
Incidents such as third party property damage, bodily injury to self or third party or theft should be reported to the nearest police station, under whose jurisdiction the incident has occurred.
What are the factors that determine premium payable on your vehicle?
The premium of the insurance is dependent on certain parameters like gender, age, vehicle classification, type of fuel used, price, no. of km used, fittings, driver's profile, type of usage i.e. commercial or personal etc.
What is no claim bonus (NCB)?
No claim bonus is given to the owner of the vehicle—who is also the policyholder—for no claim in the previous policy year. NCB can be accumulated over a period of time (usually five years). If you have NCB you can get a discount ranging from 20%-50% on the own damage (OD) premium. NCB helps you save on your motor insurance.
No claim bonus is the benefit accrued on your car insurance for ‘nil’ claims during the previous policy period. This means if you have insured your vehicle in the previous policy year and have made no claims in that year, then you can avail discount on the OD premium. The percentage of discount on OD premium increases if you don’t make any claims in the consecutive years of insurance. In a way, NCB rewards you for being a responsible driver and car owner, and helps you save on your motor insurance.
According to current norms, NCB ranges from 20% on the OD premium (and not on liability premium) and progressively increases to a maximum of 50% based on successive claim free years. If, however, a claim is filed, NCB is lost in the subsequent policy period.
Can I take a policy for a vehicle belonging to someone else?
Yes, the person who buys the policy need not be the owner himself. Anyone can buy the policy acting on behalf of the insured.
Can I buy car insurance online?
Yes, buying a car insurance online is safe and more cost-effective since companies pass on the savings from distribution, administration and courier expenses to the customer.
The process of buying car insurance has now been simplified to a large extent by the Internet. Instead of meeting with insurance agents of several insurance companies, all you need to do is go online and look for quotes for cheap car policy. Thus, without any travelling required on your part, you can get access to quotes from several insurance providers. You may also make instant payment by choosing from options like debit card, net banking or credit card.
While buying online car insurance, you need to read the fine print carefully. Make an analysis of what is covered and what is not covered under the policy. Ensure that you read the terms & conditions of the policy thoroughly. In case of any doubt, don’t hesitate to seek the help of customer care executives through online chat / 24x7 toll-free calling facility.
How to renewal car insurance online?
Car insurance policy renewal is also extremely hassle-free online and can be done prior to the expiration date of the policy. You are required to only fill in a few details and make payment to enjoy uninterrupted coverage for your prized possession.