Tag Archive | "Car Insurance"

Facts About Car Insurance in India

  • Easypolicy
  • 08 Aug 2016

To have the best insurance Policy for your car you need to know some facts about car insurance in India. The knowledgeable buyer makes prudent choices and saves money. Knowledge regarding the subject can be acquired either by discussing with concerned agent or through internet, insurance journals etc. This article is intended to provide basic but important information to a car insurance buyer.
The top 10 Car Insurance Facts in India, which can be very handy for car insurance buyers are discussed below.

1 As per Motor Vehicles Act, 1998 getting Third Party Liability Insurance is obligatory in India for driving your car; otherwise you can be fined by the traffic police if they catch you driving in an uninsured vehicle. It covers the cost of loss suffered by the third party because of Accident by your vehicle.

2 Your options are two; either go for third party insurance only policy or a Comprehensive insurance policy. A comprehensive car insurance policy covers the financial losses suffered by you as well. To make your comprehensive car insurance policy stronger you may attach several add-ons or extra benefits by paying extra premium. The list of add-ons is quite long, some popular ones are Zero-dep, engine protector, roadside assistance, invoice cover, NCB protector etc. Your car Insurance Agent must be able to explain these to you in detail and also suggest you what all add-ons you should take.

3 Car insurance can easily be compared, studied and bought online. Online transactions are transparent and policies sourced through internet are cheap as no involvement of middlemen saves upon commission. There are many insurance web aggregator websites available on which car plans can be compared very conveniently in an unbiased way and that too free of cost.

4 Validity of car insurance is only for a year and has to be renewed before expiry. Even a day’s delay can cause your Insurer to reject your renewal or demand fresh inspection of the vehicle. That is the reason your insurer and various other agents start calling you from one month before your insurance expiry date to ensure you get it done on time.

5 The Premium is decided by many factors like location, make, model, engine type, current condition, IDV (Insured Declared Value), gender, age and marital status of the car owner etc. Based on these factors the Risk to the car can be estimated and based on that the premium is calculated. For example location of the vehicle can impact its possibility of getting damaged to a great extent; a car which runs in a village with scant traffic is less likely to meet an accident in a busy metropolitan city. Similarly, married people generally drive more carefully than singles.

6 In the event of accident, the car owner should immediately inform the insurer about the incidence and file FIR in case of severe damage to the car by third party. Such prompt action is required to start the Claim process. 

7 Accidental claims are settled through cashless or Reimbursement mode. The settlement mode depends on your insurer and its tie-ups with the motor garages. Just like in case of Health Insurance policy, if you get your car repaired from a network garage you are likely to get cashless settlement of your claim. A wider and stronger network is a big selling point for car insurers. However, you must ensure that car garages in which you frequently get your car repaired falls in the network of your car insurer.

8 For every claim free year, the insurance company gives you a discount in premium called No Claim Bonus or simply NCB to encourage you to drive carefully and avoid claims. At the time of renewal you get this discount on premium. You can also ask for No claim bonus even when you are switching insurers. In other words your NVB earned is not harmed even when you change the insurer. You can get up to 50% or even more discount on premium under NCB if you have 5 or more consecutive claim free years.

9 The Insurance Company holds the right to reject or disallow the claim, if the accident falls under the exclusion category, there are geographical limitations in your policy, if the accident happens out of those boundaries, and the insurance company can reject the claim.

10 Installation of LPG/CNG kits should be declared and intimated to the RTO or RTA and the insurer. Installation of such kits can affect the inherent risk to the car. Thus, subsequent permission should be taken from the insurer to have smooth claim process.

Understanding How to Buy Car Insurance Plan

  • Easypolicy
  • 28 Jul 2016

Buying insurance for your car is not a very technical stuff. Just go through the article and you would never face any problem in judging car insurance plans. For starters, your car insurance policy is a financial agreement between you and your insurance company in which the latter agrees to pay financial losses suffered by you in case of theft or Accident of your car.

Overview of car insurance

As a car accident can cause loss to third parties as well, in order to pay for the liability towards third parties Motor Vehicles Act 1988 mandates every car owner to get it insured. A car insurance policy can be broadly categorized into two types.

      Third party insurance only policy

           Comprehensive car insurance policy

The Act mandates you to have at least Third party insurance only policy. However, you should buy comprehensive car insurance Policy as it covers your financial losses too. A car is generally a very pricey asset and cause huge financial loss in case of theft or serious accident. Thus, don’t just think of avoiding the fine by settling for a Third party insurance only policy, think about the bills you end up paying out of pocket to the repair garage in case of accidents or even worse , the loss if your car gets stolen.

How to buy plan?

Now we come to the important question i.e. how to buy a car insurance plan.

There are two modes of buying a car insurance plan, offline mode and online plan. You can use either of the modes. Offline plans are more traditional and involve approaching a car insurance agent through which you can buy such plans. Such agents can be professional agencies or employees of a particular general insurance company. These agents can also provide personal guidance and suggestions regarding your plan purchase. Many people feel comfortable buying through an agent as they can approach him at times of claims and held him accountable for any grievance. In case of offline purchases people have a recognized person to approach. This mode is favorable for people who are not tech savvy and lack commercial knowledge.

Among the more educated and urbane masses the online mode is gaining popularity. In this fast paced modern life everybody is hard pressed for time and visiting an agent or giving appointment to an agent for a meeting is a thing not many are willing to do. The internet is the source of unlimited knowledge and many people like to learn and educate themselves about their insurance needs on their screens. It saves time and at their own comfort they can review, compare, fill forms and make payments for their car insurance policy. Online transactions are very secure and the growing popularity of e-commerce websites is evidence to it.

Based on your comfort level with web technology and evaluation of the pros and cons of both you can decide your mode.

6 Ways to Compare Car Insurance Policy

  • Easypolicy
  • 28 Jul 2016

When it’s time for renewal of your car insurance many things are going in your mind like whether to stay with and get it renewed from the same Insurer or compare car insurance plans of other companies and see if you could get a better deal. Well, it won’t do you any harm if you shop around a bit and invite quotes from other companies. Comparing will only be in your favor as you can bargain for Premium from your existing insurer by showing the quotes received from the market, in case you decide to stay with that company. On the other hand it may help you switch to a better plan of a different company.

The bottom line is that; don’t renew your Policy before comparing. Explore your options; it is not mandatory to continue with the same insurer unless you have some add-ons in your policy which state that the benefit can be availed only if you stay with your current insurer. Now, let’s understand on what basis you should compare car insurance plans

1. Compare for premium

One of the most obvious reasons to compare insurance plans is to get a good plan with the cheapest premium available in the market. Compare online on insurance aggregator websites to get free of cost unbiased comparison at a single web location. Thus, in a very simplified way you can get multiple car insurance quotes to compare on a single website.

2.  Highest IDV

Especially in case of high end cars the owners want to get the highest IDV (insured declared value). IDV is the highest value recoverable from the insurance company in case of total loss. When your car is expensive one must go for the company offering the highest IDV.

3. Minimum IDV

Just like highest IDV companies have a cap of minimum IDV as well. When your car is old and to save upon premium is your primary objective, in such case look for insurers agreeing to insure your car at the minimum IDV. As premium increase with the raise in IDV you need to compare plans on the basis of the lowest IDV a company is willing to insure your car at when looking insurance for an old or inexpensive car.

4.       Maximum cashless facility/garage

Just like Health Insurance segment, cashless Claim facility is gaining momentum in the car insurance space. Insurers boast of the strength of their tie-ups with numerous motor garages wherein you can send your car for repairs and not pay upfront. When comparing on the basis of network strength ensure that the garages near your vicinity form part of their network. It is of no use to you if their network garages are located at distant places.

5.       Free Add-ons

Some companies attach some free add-ons to enhance the strength of their car insurance policies. Careful market research would let you know about the companies offering such schemes. For reference, go through the following table to understand the available add-ons in the India car insurance market.

1.       Maximum add-ons

Not all car insurance companies provide all the add-ons showing in the list above. Go for companies that are offering you your required add-ons and at reasonable rates. Compare premiums after attaching the add-ons to see how much extra you end up paying and evaluated the added cost against the benefits expected to be derived from such add-ons.