We all agree that buying a house is the most expensive investment in our life and the second most expensive investment is buying a vehicle. It is crucial to safeguard your vehicle from any unexpected happening or accident. Keeping in mind the hike of the vehicle repair charges and the risks involved in driving, an unforeseen event can put a big hole in your pocket. In these cases, motor insurance holds your back and pays on your behalf. The government has made it mandatory for all vehicle owners to get motor insurance, it is compulsory for cars, scooters, bikes, jeeps, buses and trucks, etc.
The sole motive of this insurance is to provide security against physical damage or loss suffered by your vehicle from natural and man-made calamities like accidents. Other than doing this, insurance offers coverage for third party liabilities arising due to any accidental damages, injury or death of the third party. Paying after the damages is extravagant and that is why the government has taken this step of the mandatory auto insurance policy. Other than making this insurance compulsory, the government has also made a motor accident claims tribunal where you can get your cases solved quicker than a regular court case.
Features of Insurance
- Purchasing motor insurance online is a hassle-free way to get it.
- It provides third party insurance for complete protection.
- You can get your insurance renewed online, with minimal effort of travelling.
- You can include additional features of your choice while purchasing or renewing.
- You can make cashless claims if you have required proof of theft or accident.
- Few insurance companies own garages too, you can get your vehicle repaired there.
- You will get NO CLAIM BONUS feature in which, if you didn’t claim during tenure then you can get a discount of add-ons or premium. It varies from company to company.
- Insurance companies often come up with new add-ons and features with time. You can avail those benefits to protect your vehicle and get easy coverage.
Types of Motor Insurance Plans in India
It is obligatory insurance according to the Motor Vehicle Act, 1988. This insurance covers a third party who has met with an accident involving your vehicle. This policy does not provide any direct benefits to the vehicle owner according to IRDA. If you do not have this insurance then you might have to pay a hefty fine also.
This is not compulsory as the previous one but instead, it is additional insurance and depends on the choice of insurer. It provides financial covers in case of damage or theft of your vehicle. Moreover, it is a bit expensive and also includes features of third party insurance. While asking for tata aig motor insurance or reliance motor insurance, their agents will explain everything beforehand.
Pay as you go
This is the newest type of policy launched by IRDA which has unique features. In this type, the insurer provides an estimate of how many kilometres he will drive the vehicle. The range of distance will decide the amount of the insurance policy. It includes both types of other insurances. The distance is decided pre handedly and the policyholder pays by calculating the kilometres driven.
Types of Vehicle Covered
This kind of insurance covers damage or loss of your car as a car accident in India is quite common. You should compare the car insurance policy of all the companies and then select the best deal for you. It is a contract that is built between you and the insurance company that provides coverage of both comprehensive policy and third-party liability. Through this plan, you will get facilities like Cashless claims, Personal accident cover, Loss/damage protection and unlimited liability for third-party injuries and death claims. The amount of premium depends on the condition and type of your car and also in which year you have purchased it. You can get insurance on IMV vehicles too though, there are no types of car insurance.
This plan provides insurance cover for two-wheeled vehicles that are bikes. Two-wheeler insurance or bike insurance is meant for scooters, bikes and other two-wheelers. It is a kind of vehicle insurance that will ensure a safe ride as two-wheelers are a bit riskier in case of personal injuries. Bike accidents are common on highways. The plan includes a few benefits and that are Comprehensive coverage, 2/3 years of own damage motor insurance, No claim bonus protection and Inflation protection. Similar to the case of car insurance, bike insurance varies too according to condition, type and year of manufacturing.
Commercial Vehicle Insurance
Commercial vehicles are more prone to get damaged and insurance for commercial vehicles is as important as car insurance. It releases the stress of unforeseen happening to the vehicle. It includes vehicles like tractors, cranes, taxies, goods carrying vehicles, passenger-carrying vehicles, etc. The benefits will include unlimited liability coverage for injury and death claims, Personal accident cover, Offers loss and damage protection and Indemnity for others’ property. Commercial Vehicle Insurance is also termed Taxi Insurance.
MOTOR INSURANCE COVERAGE
|Features||Third-Party Insurance||Comprehensive Insurance|
|CNG Kit Cover||No||Add on|
|Accessories Coverage||No||Add on|
These were few of the add-ons, though; the insurance companies have many add-ons. It varies from company to company; few people like to add all the additional features to access extra protection and coverage of the damage to their vehicle. You can make adjustments to your ongoing policy too. You have to contact your insurance company. It is known as an insurance endorsement.
Factors That Can Affect Your Premium
Here is a list of a few factors that will affect vehicle insurance premiums in both the short-term and long periods. Take a look at the points and educate yourself.
- Model/Make/Variant: The vehicle’s basic structure, its type, cubic capacity of the engine, etc., affects directly to your motor insurance premium plan.
- Age & Engine Type: Age is connected to the declining value of the insured vehicle with time. The engine type, i.e., petrol or diesel, affects the Insured Declared Value, increasing the premium of your vehicle.
- Location: Using a vehicle in the metro area or a big city increases the risk of damages and theft so the premium in these areas is high as compared to small cities.
- Cover: Choosing comprehensive coverage will cost you more than third-party liability coverage. Third-party coverage will not pay you anything if something happens.
- Add-Ons: Companies are giving additional features to the vehicle owners to enhance the coverage. Adding security features and cover like zero depreciation, passenger cover, etc., increases the premium amount too.
- No Claim Bonus: You will be eligible to get discounts on policy premiums if you don’t ask for claims in the previous policy tenure.
- Deductibles: You also get a choice to choose for the voluntary deductible to reduce the motor insurance premiums by contributing a predetermined amount.
- Anti-Theft Features: By installing the anti-theft devices certified by ARAI, you will get better discounts on motor insurance premiums.
- Seller’s Policy: If you want to lower the prices of motor insurance premiums, then buy a policy from the seller directly instead of buying it through an agent.
- Digital Insurance: Digital-first plan has an ample amount of variety in features at a lesser price than the market price for new purchases as well as renewal of the old policy.
How to file for a claim for Motor Insurance?
Here is the procedure through which you can file a claim for your damaged or lost vehicle. The claim is based on the insurance plan you have opted, you will get a claim accordingly.
- The procedure of Claim in Cases of Damage to Cars/ Two Wheelers/ Commercial Vehicles
- To begin with, the vehicle owner needs to submit details of an estimated amount of the loss to the insurance company.
- Independent automobile surveyors with engineering backgrounds perform the task of checking the reason and level of the loss.
- Then they carefully inspect the damaged vehicle and submit their survey report to the insurance company
- The company reviews and examines it in accordance with the recommendations mentioned therein.
- The basic practice is to authorize repairs with the repairer to whom the letter is issued in this regard.
- Other than the Claim Form, Documents that are Required for Processing Claims
- Fitness Certificate (Commercial Vehicles)
- Driving License
- Registration Certificate Book
- Final Bill from repairers
- Police Report
- Third-Party Claims
The issue then shifts to a lawyer based on receipt of the notice from the insured or third party. Detailed information regarding the accident is collected from the insured including the mentioned documents-
- Police Report
- Driving License
- Medical Certificate
- Death certificate in case of a fatal claim
- Points that fixes Motor Insurance Premium
- Age of the person/ vehicle owner
- Experience of driving or any history related to that
- Manufacturing year of the commercial vehicle/ car/ two-wheeler
- The profession of the person
- Geographic location
If you still have some questions and doubts regarding motor insurance, you can ask your query in our FAQ section or give a call or write us at firstname.lastname@example.org Our contact information is available on the website.
Other Related Questions
The damage occurred through strike, fire, burglary, terrorism action, natural calamity- earthquake, landslide, flood, storm cyclone. The motor insurance policy company will pay your insured amount in any of these cases.
There are few conditions like intake of drugs or condition of intoxication, vehicle used for illegal activities, not having valid driving license and damage or loss of vehicle in a foreign country. Under any of these conditions, the insurance company will pay you the insured amount.
- You will get it at cheaper price because you’ll save the money of agents.
- Check multiple options, add-ons and variety.
- You can add or remove any additional feature from the policy.
- It saves up your time and efforts of visiting the company or agent. You can check the details on website or mobile app.
- While renewing the insurance online, you get the chance to pay online too, which is the safest mode for payment nowadays.
- The insurance company gets notification of the purchase and they update your policy and payment quickly.
The period of motor insurance policy is valid till one year, a person have to get their policy renewed before that to avoid any complications. If the policy is not renewed within 90 days then you are no more eligible to ‘No Claim Bonus’
Your previous insurance policy will not shift to your new vehicle. As mentioned before, the insurance policy depends to the condition and year of manufacturing of your vehicle. It is not possible to shift insurance policy, you have buy new policy for new vehicle. If you are selling your old vehicle (car gari) then the policy will shift to the name of new owner. It has to be done within 14 days of purchase and it should have vehicle owner contact number too.
Here are some good insurance for your bike like acko bike insurance, tata aig bike insurance, hdfc ergo bike insurance, reliance bike insurance, hdfc bike insurance and bajaj bike insurance. Other than these, Bajaj alliance life insurance is also very beneficial. You can check their plans online by searching policybazaar bike insurance or two wheeler insurance policy bazaar. Checkout the plans of motor gari on icallinsurance too, compare properly and then decide.
- Proof of Identity (Passport/Driving License/Aadhaar/PAN Card/Government Issued Photo ID)
- Proof of Address via Passport/DL/Bank or Post Office Passbook/Government Issued Photo ID
- Recent Passport size photo
- Driving License
- Vehicle Registration Certificate