Frequently Asked Questions

Car Insurance

• What is Motor Insurance?  206 Views

  Motor Insurance policy is a contract between a vehicle owner and an insurance company wherein the insurer assures to provide protection against financial losses to the owner in exchange of premiums paid, if the insured vehicle gets damaged or stolen. Also, it covers liabilities for injuries, damages to others caused by your car.

• Is the Liability Only (Third Party) Motor Insurance Policy Mandatory?  156 Views

  Liability Only or Third-party Motor Insurance Policy is mandatory for all vehicles either private or commercial that ply on public roads in India under the Motor vehicle Act. It protects your liability against losses to third-party for bodily injury and/or death or damage to property caused by your vehicle.

• What are different types of Motor Insurance Policy?  181 Views

  In India there are two types of insurance-

  (a)    Third-party or Liability Only and

  (b)   Comprehensive Cover 

• Motor Insurance Policy?  151 Views

  Liability Only or Third-party Motor Insurance Policy is mandatory for all vehicles either private of commercial that ply on public roads in India. It protects your liability against losses to third-party for bodily injury and/or death or damage to property caused by your vehicle.

• What is Comprehensive Motor Insurance Policy?  143 Views

  Comprehensive Motor Insurance or Package Policy covers both damage/loss to your vehicle and damage/loss to third-party caused by your vehicle. Besides, it covers against damage due to fire, riots, lightening, natural disaster or malicious act.

• Which type of Motor Insurance Policy should I buy?  158 Views

  Although as per the India Motor Vehicles Act 1988, only ‘motor third-party’ is mandatory, it’s advisable to take ‘Comprehensive Cover’ insurance policy for complete peace of mind. 

• What is Liability Only (Third-Party) Motor Insurance Policy?  120 Views

  Third-party Motor Insurance or Liability only indemnifies the insured person, if he is legally liable for the third party damage or bodily injury.

• What is the period of Motor Insurance Policy?  140 Views

  A motor insurance policy usually remains valid for one year and needs to be renewed before it expires. In case of motor insurance, you can’t avail any grace period and any delay in paying the premiums requires the vehicle to be inspected. In case of a comprehensive policy, if you don’t pay for more than 90 days, the NCB benefit is also lost.

• What are the factors that determine premium of my car?  133 Views

  Third-party Liability premium of your car is determined the IRDA. For ‘Own Damage’, premium may vary from insurer to insurer for same cover. Important factors that determine premium for ‘Own Damage’ are- IDV (insured declared value), make and model of your car, year of registration, place of registration and benefits offered etc. 

• Whatis ‘No-Claim Bonus’ (NCB) benefit?  144 Views

  ‘No-Claim Bonus’ is a discount on the premium of ‘Own Damage’ section of the policy. The insurer offers a discount on premium when you renew your policy, provided no claim is made during last policy year. The NCB benefit ranges from 20% of the maximum of 50 per cent on ‘Own Damage’ premium. But if you fail to renew your policy within 90 days of expiration, NCB will be lost.

   

  It is important to note that only the insurance policy not the NCB benefits can be transferred to the new owner. The original owner, however, enjoys the flexibility to use the NCB on a new vehicle bought by him.

• Can my NCB accrued over the period lapse?  104 Views

  Yes, your NCB can lapse if- (a) you fail to renew your policy within 90 days of expiration, and (b) you make claim. 

• Can I get my NCB transferred to new policy if I switch the insurance company?  106 Views

  Yes, you can get your NCB transferred to new policy no matter you switch the insurer. You only need to provide a proof of your earned NCB via a letter confirming the NCB entitlement or renewal notice.

• Can I get policy of my old car transferred to the purchase of new?  109 Views

  Yes, you can get your existing policy transferred to the new purchase.

• Can I avail discounts in premium?  164 Views

  Yes, you can avail discounts towards the premium amount (Own Damage cover) for a motor policy.
   

  • With NCB, you can get lowering the premium amount.
     
  • Membership of Automobile Association of India.
     
  • Membership of Vintage Cars (As certified by the Vintage and Classic Car Club of India).
     
  • Installation of anti-theft devices (approved by Automobile Research Association of India).
     
  • Concessions for specially designed vehicles for the handicapped, blind and mentally challenged persons.

• What is an IDV (Insured Declared Value ?  147 Views

  The Insured Declared Value is the sum insured of your car calculated based on the depreciation percentage formula.  The insurer will compensate you equivalent to the IDV in case of theft or total loss of car. 

   

  IDV is calculated as:

  Within 6 months of purchase- 5%

  After 6 months to 1 year of purchase - 15%

  After 1 year to 2 years of purchase - 20%

  After 2 year to 3 years of purchase - 30%

  After 3 year to 4 years of purchase - 40%

  After 4 year to 5 years of purchase- 50%

   

  After 5 years of purchase or if the car is obsolete, the IDV of your car will be agreed sum between you and your insurer.

• Can I bring accessories under the ambit of insurance cover?   113 Views

  Yes, you can also insure additional accessories installed in your car under comprehensive cover for an additional premium. Factory fitted accessories are already covered under the policy. 

• Whatis ‘deductible’ or ‘excess’ in Motor Insurance?  118 Views

  Deductible or excess in motor insurance is an amount you need to pay before your insurer pay any expenses. The compulsory excess of two-wheelers are Rs.50 and for Private Cars and Commercial Vehicles, it is Rs.500 that further increases on the basis of the cubic capacity of your vehicle.

  In some cases, the insurer may charge an additional amount depending upon the age of the vehicle or if claims are made frequently.

• What is Automobile Association membership discount on car premium?  112 Views

  If you are a member of any of recognized Automobile Associations, such as - Automobile Association of Eastern India, the Western India Automobile Association, etc., you will be entitled to avail discount of 5% on the Own Damage premium component (maximum of Rs. 200 for a private car).

• How can I avail the Automobile Association of India membership?  104 Views

  Filling up an online application form along with cheque of requisite membership fee in favor of the respective Automobile Association, you can become a member of that Automobile Association. The fee and charges to become a member of an automobile association may vary. You may check on the respective automobile association membership terms and conditions.

• How much discount can I avail if my car is fitted with an anti-theft device?  110 Views

  If your car is fitted with anti-theft devices approved by Automobile Research Association of India (ARAI), and whose installation is approved by any of the Automobile Association of India, you will be entitled to avail discount of 2.5 per cent on Own Damage premium, subject to the maximum of Rs. 500.

• Whatare the documents required to be submitted for making claim?  134 Views

  These are the documents that require to be submitted while making claim for motor insurance policy-

  (a)    Duly filled up and signed claim form (form can be downloaded from company’s website)

  (b)   RC (Registration Certificate) copy of your car

  (c)    Original estimate of loss

  (d)   Original invoice and payment receipts

   

  For policy with cashless facility, only repair invoice with FIR (if required) need to be submitted.

   

  For theft claim, keys with non-traceable certificate need to be submitted.