What is a Car Insurance?

A car is deemed to be a prized possession and you would want to protect it from all the possible risks. Accidents, thefts, fire, etc. are some of the perils which pose a threat to your car. In the case of an accident, the risk would be even higher as human life is involved. Car/ Vehicle insurance is a tool to protect you from these risks and financial losses. As per the Motor Vehicle Act, all vehicles operating in public places should have at least a third party liability cover. We recommend a Comprehensive Cover which includes accidental damage to the vehicle, loss due to Natural/ Un-Natural Calamities, Theft and Third Party Liability, in case there has been any unexpected event.

For the purpose of Insurance, motor vehicles are classified into 4 broad categories:

  1. Private Vehicles (Eg. Car, Jeep, Utility Vehicle)
  2. Two Wheeler (Motor Cycle & Motor Scooters)
  3. Commercial Vehicles
    1. Good Carrying (Eg: Public Carrying Vehicle - 3 Wheeler & Excluding 3 Wheeler, Private Car, etc)
    2. Trailers
    3. Passenger Carrying
      1. Motorised Rickshaws
      2. Taxis
      3. Buses
  4. Miscellaneous Vehicles
    1. Hearses (Funeral Van)
    2. Ambulance
    3. Cinema Film Recording & Publicity Vans
    4. Mobile Dispensaries

What are the Different Types of Car Insurance Policies?

Third Party Car Insurance Policy
As per the Motor vehicle act of 1938, a third party car insurance is mandatory for any vehicle operating in the public places. It covers the insured against any losses incurred towards Third Party Property or Individual due to an accident.
Comprehensive Car Insurance Policy
A Comprehensive Car Insurance Policy will cover any loss to the vehicle due to an accident, Natural Calamities, etc. along with other benefits like Personal Accident Cover for the owner and passengers, Theft, Third Party Person & Property Damage.

Add-on Benefits offered in a Car Insurance Policy

Zero Dep. Cover
Customers will receive the full claim amount without factoring in any depreciation on the value of  the parts replaced.  
Return to Invoice
The difference between the Insured Declared Value and the invoice price of your car will be paid under this benefit.
NCB Protection
Under this plan, the insured can retain the accumulated 'No Claim Bonus', even after a claim is raised.
Emergency Services
Services like Fuel Assistance, Daily Allowance, etc. are offered to car owners in case of an emergency.  
Key Replacement
Covers the cost of making duplicate keys in case of an irrecoverable loss and/ or the cost of the lock, if needed. 

Smart Buying tips for a Car Insurance

Be an Add-on Smart
Along with the Motor Comprehensive cover there are certain companies that offer Additional Covers to enhance your car protection. Such covers are must while buying a Car Insurance. 
Renew on Time
Renewing on time helps to protect your vehicle and keep your NCB intact. Set reminders for your car insurance and avoid any delay in paying the premium.
Avoid any 'False Declaration'
Always provide appropriate information about your vehicle and the past history. In case, if you have hidden any information, the company might decline your claim & cancel the policy.  

Premium for Car Insurance is Determined by

IDV
Current Value of the Vehicle (Post Depreciation)
City of Registration
The city where your vehicle is registered
Make & Model
Vehicles Make, Model & Potential Risk Factors associated with it
NCB Percentage
A discount offered to the customer in the event of no claim
Claim History
History of the Claimed Amount for a particular year

Car Insurance Claim Process

Claim Settlement is one of the most important services that is offered by the insurance company to their customers. 
To get a detailed information about the different life insurance company process please click below.